Expanding classic credit card service for individual customers at PVcomBank – linh dam transaction office

Professional bachelor degree in Finance-Banking-Insurance (Customer relationships management) WORK PLACEMENT REPORT Vietnam Public Joint Stock Commercial Bank Expanding Classic Credit Card service for individual customers at PVcomBank – Linh Dam Transaction Office Names of student : Vu Thi Kim Oanh University year : 2017-2020 Tutor at TMU : Dr.Do Thi Dien Tutor at (Company) : Luong Xuan Huy Hanoi – 2020 CONTENTS CONTENTS .i LIST OF FIGURE iii LIST OF TABLE iii ACKNOWLEDMENT INTRODUCTION OF REPORT Reason of the report 2 Report object Report approach and steps PART 1: INTRODUCTION ABOUT PVCOMBANK AND THE INTERNSHIP .4 1.1.Introduction of the bank 1.1.1 Overview about PVcomBank 1.2 Introduction of Linh Dam Transaction Office 1.3 Internship plan PART 2: INTERNSHIP IMPLEMENTATION AT PVCOMBANK – LINH DAM TRANSACTION OFFICE 2.1 The internship position, responsibilities and tasks .7 2.1.1 Department structure and internship position 2.1.2 Business procedure and work placement responsibilities .7 2.1.3 Daily tasks 2.2 Some business cases 2.2.1 Case No1 2.2.2 Case No2 .10 2.2.3 Case No3 .11 2.2.4 Case No4 .12 2.2.5 Case No5 .13 2.3 Service analysis 14 2.3.1 Customer research 14 2.3.2 Competitor analysis 18 2.3.3 SWOT analysis 20 2.4 KPI and KPR 21 2.4.1 KPI 21 2.4.2 KPR .21 2.5 Host firm assessment and recommendation 22 i 2.5.1 Host firm assessment 22 2.5.2 Recommendation 22 PART 3: INTERNSHIP ASSESSMENT 24 3.1 The difficulties encountered 24 3.2 Internship gained 24 3.3 Career plan .26 CONCLUDE 27 LIST OF REFERENCE 28 *APPENDIX QUESTIONAIRE 29 ii LIST OF FIGURE Figure 2.1: Organizational structure of PVcomBank- Linh Dam Transaction Office Figure 2.2 Customer’s age survey 14 Figure 2.3 Customer’s gender survey 15 Figure 2.4 Customer’s job survey 16 Figure 2.5 Customer’s income survey 17 Figure 2.6 Customer’s marital status survey 17 Figure 2.7 Customer’s Purpose of using credit card survey 18 Figure 2.8 Customer’s demand for using a credit card survey .19 iii LIST OF TABLE Table 1.1 The development of PvcomBank Table 1.2 Activities Table 1.3 Internship plan at PVcomBank - Linh Dam Transaction Office .6 Table 2.1 Comparing Credit card products among banks 18 Table 2.2 SWOT of PVcomBank 20 Table 2.3 KPI of Linh Dam Transaction office – Individual Customer Department from October to December 2019 21 Table 2.4 KPR of Linh Dam Transaction office – Individual Customer Department from October to December 2019 21 iv ACKNOWLEDMENT In order to achieve the great results of this thesis, I have received massive support and support from my teachers I would like to express my deep affection and gratitude to all the individual department and agencies who have always facilitated and guided us throughout the process of researching the subject First of all, I would like to send the warmest greetings, health wishes to Professional bachelor degree in Finance-Banking-Insurance.Thanks to their through and throughful guidance, we are now able to complete the group project, the topic " Expanding Classic Credit Card service for individual customers at PVcomBank " In particular, I would like to send my most sincere thanks to Dr.Do Thi Dien for helping and guiding me to successfully complete my project I would like to thank the Professional bachelor degree in Finance-Banking-Insurance for direct and indirect assistance during the process of studying and researching the topic while conducting this project After months of practicing at PVcomBank, I have learned a lot of knowledge and accumulated a lot of experience With the enthusiastic support of the Sales Department members, I have completed waiting for the most complete internship After working here, I have learned valuable lessons for myself a solid luggage to continue on my career path Over the period of internship, I had the opportunity to interact with the working environment, customers, and the new office work In the past months, I have gained more confidence because I have been able to work and study in a real environment, giving me confidence, patience and attention at work Given limited time, this project may be displaying some shortcomings due to lack of experience I are looking forward to receiving the advice and suggestions from the teachers so that I can supplement and improve our awareness to better the actual work in the future INTRODUCTION OF REPORT Reason of the report The Bank is an important channel of capital with a wide range of activities, strongly affecting socio-economic fields, economic entities, economic sectors, affecting many other activities Since Vietnam joined the World Trade Organization (WTO) and after the world economic crisis, the level of competition in the banking industry has become increasingly fierce Banks must increasingly improve their services and improve themselves in line with the general development law From a banking business perspective, credit card operation is always the basic operation of commercial banks Through credit card business, commercial banks provide a large amount of money to the economy to meet consumer demand for individuals Profits earned from this activity are relatively large in the bank's profits The people's needs and living standards are increasing day by day Now, using goods before payment is increasingly popular Grasping that demand, the bank is increasingly developing credit card activities, one of the most important forms of bank credit in Vietnam During the internship and study in my personal room, Joint Stock Commercial Bank - Linh Dam Transaction Office, I realized that the bank had an interest in credit card activity but this has not really become an activity yet big bank Therefore, I chose the topic "Expanding classic credit card service with individual customers at PVcomBank" as my report topic with the desire to contribute and offer some solutions to promote further Credit card operations of the bank Report object I want to find out the situation of credit card products to customers of PVcomBank by understanding:  Assessing the quality of credit card types at PVcomBank  Determine customer satisfaction with credit card products  Identify strengths, weaknesses, opportunities and challenges facing PVcomBankLinh Dam Transaction Office  Collect and analyze collected data  Having practical experience in expanding credit card products at bank Report approach and steps  Step1 Project design:  Meet bank manager  Identify issues  Design project agreement  Step Collecting data:  Collect document at bank  Summarize the data  Step Data analysis:  Data classification  Data processing  Step Reality:  Observing at the bank  Design questionnaires  Surveying  Discuss to find solutions  Step Report:  Prepare mid – term report  Prepare final report  Oral presentation PART 1: INTRODUCTION ABOUT PVCOMBANK AND THE INTERNSHIP 1.1.Introduction of the bank 1.1.1 Overview about PVcomBank  Name: Vietnam Public Joint Stock Commercial Bank- PVcomBank  Head office: 22 Ngo Quyen, Trang Tien Ward, Hoan Kiem District, Hanoi City  Legal status: Vietnam Joint Stock Commercial Bank (PVcomBank) was established under the Decision No 279 / dated September 16, 2013 of the State Bank of Vietnam on the basis of consolidation between PetroVietnam Finance Joint Stock Corporation Vietnam (PVFC) and Western GP-NHNN Commercial Joint Stock Bank (WesternBank) On October 1, 2013, PVcomBank officially operated on the basis of a joint-stock enterprise registration certificate, enterprise code 0101057919 issued by Hanoi Department of Planning and Investment  Total assets: VND 100,000 billion  Charter capital: VND 9,000 billion  Website: https://www.pvcombank.com.vn/gioi-thieu-ve-pvcombank.html - PvcomBank has 116 branches / transactions, 88 ATM / POS in 63 provinces / cities nationwide  Vision: By 2020, it will become one of the seven leading joint stock commercial banks in Vietnam in terms of asset size  Mission: “To become a bank with professional staff, fully capable to provide high quality services to customers, to contribute to the development of the community and add value to our shareholders bronze"  Geographical development: PVcomBank has 116 branches / transaction offices, 88 ATM / POS in 63 provines/ cities nationwide  Date of creation: PVcomBank was established on September 16, 2013 and officially came into operation on October 1, 2013  The development of PVcomBank Table 1.1 The development of PvcomBank Years 01/10/2013 Events/Achievements PVcomBank was established 2015 In august 2015 The Bank has established 112 transaction points nationwide PVcomBank launched a preferential credit package with low interest rates, which excelled at only 5.99% per annum and total loan budget December of VND 2,500 billion 31, PVcomBank's total consolidated assets reached more than 98.6 2015 trillion dongs, equity reached more than 10 trillion dongs, profit after January 2016 tax reached nearly 57 billion dongs VND 3,500 billion is also a credit program deployed for lending to customers (Source: PVcomBank- Linh Dam Transaction Office)  Activities Table 1.2 Activities Individual client Credit Enterprise client Deposits Currency business State bonds business Transfer money services Credit National treasury bonds Currency business with fore Card products Trade ponsorship countries Foreign currency and Electronic banking Forex products commodities business Incurrence or exchange Other products Saving product business Account service International remittance Other products International settlement (Source: PVcomBank- Linh Dam Transaction Office) 1.2 Introduction of Linh Dam Transaction Office Name: PVcomBank - Linh Dam transaction office  Location: 13 BT1 Bac Linh Dam Urban Area, Nguyen Huu Tho, Hoang Liet Ward, Hoang Mai District, Hanoi city  Phone: (844) 366 86458  Fax: (84-4) 366 86459  Email: https://www.pvcombank.com.vn/  Number of employees: 20 persons  Date of creation: 2013 Job Figure 2.4 Customer’s job survey (Source: https://forms.gle/yiL5zAwu5M1zrHxA9) The results described some information about customers’ current occupation This type of information is necessary to evaluate the validity of response in my survey Officers are major customers of my survey with 36% response Then, business for 34% I saw that the development of the education and technology brings more job opportunities with good salary for officers and almost officers have at least one bank account these days Followed by this, worker just occupied 18% The rest of others occupation for only 12% They are not interested in this survey because they have no need to use credit cards 17 Income Figure 2.5 Customer’s income survey (Source:https://forms.gle/yiL5zAwu5M1zrHxA9) The income chart shows that the salary of the survey participants is quite high, from 11 million to 35 million, namely: the salary from 11 million to 25 million and 26 million to 35 million, both at 33% Salary of over 35 million VND is 20% Finally, the salary below 10 million is very low at 14% This result shows that the majority of the participants' incomes are quite high and stable Therefore, they can afford to pay off the debt on the monthly card Marital status Figure 2.6 Customer’s marital status survey 18 (Source: https://forms.gle/yiL5zAwu5M1zrHxA9) The proportion of married people is much higher than that of single people in which, married people accounted for 77%, single people accounted for only 23% From this result, it can be seen that married people tend to use credit cards more because they are married and want to have more money to serve their personal life Therefore, they use credit cards as a safe backup plan for those arising in the family Purpose of using credit card Figure 2.7 Customer’s Purpose of using credit card survey (Source: https://forms.gle/yiL5zAwu5M1zrHxA9) From the survey results it can be seen that most people use credit cards for the sake of their personal lives Credit card usage is very safe As a financial backup tool: In case of emergency, there is no cash to use in consumption and shopping, you absolutely can use credit card to support this problem 2.3.2 Competitor analysis Table 2.1 Comparing Credit card products among banks Characteristics Interest rate Credit limit Credit card records PVcomBank 18%-25%/year 10 million VND -1 billion VND 45-55 date ID card Registration book Labor contract Statement of salary for the last months Card application form TPbank 25,3%-27%/year 10 million VND-1 billion VND 45-55 date ID card Registration book Labor contract Statement of salary for the last months Card application form 19 VPbank 27,5%-30,3%/year 15 miliion VND- billion VND 45-55 date ID card Registration book Labor contract Statement of salary for the last months Card application form Customer age From 22 to 60 From 22 to 55 From 22 to 60 (Source: Topbank.vn) This is a table comparing interest rates, credit card open limits of credit cards of PVcomBank compared to other commercial banks Credit card customers always pay attention to interest rates, preferential packages, and that is also the main attraction that banks will create to compete Recently, many banks have opened attractive preferential policies and programs, with reasonable interest rates Preferential interest rates for current credit card customers range from 18-30% per year.TPBank offers interest rates from 25-27% while VPBank offers interest rates higher than 27-33% Customers often need to open Classic card more than other classes such as Platinum, Titanum,…because Classic card is easy to use, many incentives, low interest rates, simple card opening procedure, 20-30% refund when shopping, eating, watching movies, Platinum and Titanum have high card rank, more incentives but high risk: high card limit, when customers cannot afford to pay the debt on the card will be issued Currently, bad debts greatly affect the bank's budget Comparing interest rates of PVcomBank with other prestigious banks, we can see that ACB's interest rates are quite favorable but still quite high Figure 2.8 Customer’s demand for using a credit card survey (Source:Topbank.vn)  Credit cards of banks have fierce competition Most banks have the same card type 20  Some banks have competition from PVcomBank such as: TP Bank, VP Bank,  Most banks have the same credit card priority, but PVcomBank is still preferred by customers because:  Simple procedure  Many offers: unlimited limit, 6% refund for payment transactions; 2% refund for shopping, eating and drinking at supermarket; 2% refund on education and health expenditures; Refund of 0.3% of other expenses, especially special seats when traveling on an airplane,  Quick release  And especially interest rates are lower than other banks 2.3.3 SWOT analysis Table 2.2 SWOT of PVcomBank Strenghts Weaknesses  Quick procedure (fast approval)  According to the policy of the State Bank, from organizations:  Simple procedures, no need to prove restructuring collecting too many details of customer PetroVietnam Finance Corporation and Western Commercial Joint Stock Bank so information the brand is almost completely new, so few  Quick disbursement people know it, still exists many bad debts, mainly in large amounts Scale has not grown strongly Not yet made many provisions, so the Opportunities profit is not high In the process of restructuring Threats  Retail channel development phase of  The number of customers increased but retail customers is restricted to large still modest compared to the potential of the corporate lending, focusing on lending to branch individual customers Competition among banks is becoming increasingly fierce, banks are competing fiercely in interest rates, quality, service improvements and customer satisfaction Customers are still not satisfied with 21 facilities, after-sales service 2.4 KPI and KPR 2.4.1 KPI KPI, called "Key Performance Indicator" is an indicator that measures and evaluates the performance of a part of a company or the operation of a company Nowadays, almost all companies and enterprises built according to the standards of modern companies in the world use KPI as an evaluation index of each employee, as a tool of emulation and development, from there can see an overall view of the whole process Below is the KPI of a staff in Individual Customer Department from October to December 2019 Table 2.3 KPI of Linh Dam Transaction office – Individual Customer Department from October to December 2019 KPI Interest income Fee income Proportion 25% 30% Unit Million Million October 423 50 November 643 70 December 1.112 101 Insurance 45% Million 20 30 55 Loans 5% Million 1.235 2.954 4.287 Credit card New customers 10% 5% Card 23 40 60 Customer 35 60 85 (Source: PVcomBank – Linh Dam Transaction Office) 2.4.2 KPR Because I was only an intern at PVcomBank, during this time I was not assigned a KPI by the bank The table below shows the results of the performance for the above months Table 2.4 KPR of Linh Dam Transaction office – Individual Customer Department from October to December 2019 KPR Interest income Unit Million October 442 November 618 December 1.023 Fee income Million 45 77 110 Insurance Million 27 35 50 Loans Million 1.145 3.058 4.528 Card 25 45 55 Credit card New customers Customer 32 52 60 (Source: PVcomBank – Linh Dam Transaction Office) 22 The number of customers who want to use credit card is increasing Simple legal records, high limits and customers opening credit cards for the purpose of serving high personal life Many people even open credit cards with insurance policies that have been used for more than year 2.5 Host firm assessment and recommendation 2.5.1 Host firm assessment PVcomBank- Linh Dam transaction office has the strength of the retail network system, profitability, efficiency, sustainable growth capacity in the future and the ability to adapt to the continuous changes of the market as well as customer demand Over the past years, the bank has achieved good business results, building the foundation of risk management, technology and human resources, meeting the elements of the Vietnamese financial banking market They not only focus on business objectives, ensuring shareholders' benefits, customers and employees, but also always fulfills its responsibility to the community PVcomBank's staffs are young, dynamic, friendly and enthusiastic to help customers to prepare banking procedures Credit Card service has stable interest rate and many incentives Overall, PVcom Bank transaction office has been quite successful in taking care of customers who are having a credit relationship at banks They have got a good customer service quality that make customers trust the bank's products and services However, improvement on certain things should be done in order to increase the level of customer satisfaction It is recommended that the company should improve communication activities, advertising and promotion to attract new customers and also to inform existing customers about upcoming events 2.5.2 Recommendation I will come up with some personal ideas found from my internship I think it will help improve the Credit Card process and be more practical Limitations and measures of the bank * Subjects using credit cards are limited Credit card users of the bank often focus on the segment of high-income population, business trips abroad, foreigners traveling or working in Vietnam or a number of public officials in the banking industry Other residents such as officials and employees in other industries, freelance workers, etc have not received proper attention to credit cards The small number of cardholders will make it difficult for the credit card market to develop because of demand, new supply and exciting market 23 Solution: PVcomBank should prepare marketing activities to introduce its products to consumers, before conducting the bank should research and analyze the market to understand the needs of customers * Product introduction is limited: Only when customers have needs then come to the bank to find out, they will know the bank's card products, and in general, the card's utilities and information are still not known to the majority of people Because letting customers come to find them rather than customers, it also makes the credit card users less because of the hesitation of the people, leading to unused bank card products Use at maximum Solution: The bank should promote a broader marketing strategy to consumers such as advertising on leaflets, TVs, billboards in public areas, social networking sites, etc Besides, build a qualified and friendly customer staff friendly and enthusiastic consultant for the bank Appropriate recruitment policy is necessary, attracting qualified people and professional ethics to work in the bank * The ATM system and the system of credit card acceptance points of PVcomBank are still not many and still have many shortcomings This is considered the biggest factor affecting the credit card payment revenue of PVcomBank, which is also one of the causes of the above mentioned consumer restrictions Regarding ATM system, although ATM system of NHNT belongs to the most modern and the most, it seems still not enough if the demand for card use is increasing The network of card-accepting units is limited, the basis for developing card activities is lacking * Solution: First of all, it is necessary to clearly state the status of the current banking system in Vietnam in the field of card To develop card payment activities requires commercial banks to have a modern payment technology, safe, fast and synchronous PVcomBank cooperates with other banks to create a solid base network to develop the services of the whole system 24 PART 3: INTERNSHIP ASSESSMENT 3.1 The difficulties encountered During the internship period, I encountered many difficulties as follows:  New environment: o First contact with the banking tutor made me quite embarrassed Therefore, it was very difficult to show our self-harmony, openness in communication which seriously affected the work To overcome the situation, I actively talked with the staff in the division and politely asked for help during the practice o Lack of experience and knowledge made it harder for me to find credit card customers o In the customer survey, customers hesitated and refused to answer my interview questions, some customers provided false information such as bad debt status but declared no bad debt leading to complicated procedures o I have difficulty finding customers, because customers not understand the product so they are afraid of me cheating o I not have much experience to approach customers, whether their mood is good or not, they not want to cooperate with me if they are in bad mood, so I cannot approach the customers and promote the service to customer o The bank did not promptly provide data of customers, so I had trouble getting around to the customers 3.2 Internship gained During this internship, I have chance to learn about the banking activities, professional working attitude  Know the process for opening credit cards o Understand more about products in the bank o Listen to customers' opinions and learn how to handle problems through a bank instructor o Find and introduce customers about the offers, interest rates, terms and procedures when opening a credit card o Building good relationships with customers and banks, creating more opportunities for work and life o Increase cooperation and teamwork 25 o Have more office skills about word and excel o Hone your skills in searching documents and information Experience gained: o Gain more knowledge of the banking sector from practical experience by research o Communication skills with customers, how to listen to their opinions and their needs to make a loan o I learn how to negotiate with people to make better decisions; be trained by instructors for basic office tasks such as printing documents, drafting documents, organizing files, o From meeting customers, I understand the importance of finding the right customers I have been trained to a professional survey, use office software for research data and learn how to create a questionnaire with a good, right-of-the-line questionnaire, which creates comfort for paying customers word o Build relationships with customers and banks and learn how to work with everyone in a team effectively Skills improvement: o Negotiate skills with customers o Computer skills: capable of using office software o Presentation skills, more confident when standing in front of a crowd o Data analysis ability, time management skills o Talking to customers gives me an opportunity to solve problems in a professional manner I know how to find materials for learning and practice process more accurately and professionally I will often have to look for references outside the curriculum; Research articles to gain access to the most in-depth and accurate information I need to go to the library more often, can easily find the most relevant materials for the subject or the book publications, research papers, reports of the teachers who teach the subject at the library Besides, during practice and collide with reality; I already know how to be flexible in how I receive information In addition to self-search materials on the internet or in books, I can still gain more information through observation and learning from employees at the internship facility 26 I have improved my communication skills: no longer timid in front of the crowd, and confidently handle the work my instructions assigned, creating trust for customers 3.3 Career plan My short-term goal is to be able to pass this year's project and get my bachelor's degree from Toulon Var University Achieving this short-term goal, I will set new goals in the future To be able to become a better banker I will continue to specialize in a professional course and semi-insurance course After I finish university, I will be more confident when applying for jobs at banks With a professional environment I can gain more experience and knowledge My long-term goal is to be able to achieve more in my work and take on more responsible jobs I know it takes many years to achieve this and I'm always willing to work hard to achieve the goal These goals will always motivate me to reach new heights 27 CONCLUDE Entering a new era with the integration and strong development of Vietnam's economy today The development, competition, grasping trends, giving the right guidelines and policies are vital of domestic, international companies, businesses, banks For the banking industry in particular, the development of credit card services is one of the urgent tasks that Vietnamese banks can compete with, and keep up with, the trend of the era to become giants giant in the industry After a new road block has opened with a firm belief to push PVcombank in general and Linh Dam in particular, ready to speed up and break through to conquer new roads Ready floor undergoes many new challenges In order to make a small contribution to the development of PVcombank – Linh Dam Transaction Office, the report has built and presented some outstanding limitations and solutions to develop credit card services for Transaction Office in the condition that current economic development Along with the common difficulties of the banking industry today, PVcombank Linh Dam Transaction Office is facing great challenges expressed through the increasingly tough and complex business environment Recognizing the importance of credit in general and consumer credit in particular to PVcombank - Linh Dam Transaction Office as well as many other banks, in recent years, actively implemented measures to boost consumer credit activities However, through analysis, I found that besides the encouraging results that the bank has achieved, there are still some limitations, so I have come up with some solutions to improve the quality of consumer credit Used at PVcombank - Linh Dam Transaction Office This is not a new topic but a matter of concern, posing in the current stage of commercial banks in general and PVcombank - Linh Dam Transaction Office in particular so I chose this topic Due to the rich nature of the topic, it is inevitable that the limitations of analysis and solutions We hope to receive valuable contributions from you and your brothers and sisters in the Branch to make this report more complete and more practical I would like to thank 28 LIST OF REFERENCE https://www.pvcombank.com.vn/gioi-thieu-ve-pvcombank.html PVcomBank- Linh Dam Transaction Office https://www.pvcombank.com.vn/ https://forms.gle/yiL5zAwu5M1zrHxA9 Topbank.vn 29 *APPENDIX QUESTIONAIRE 1.Do you currently use credit cards? A.Yes B No Please indicate your age? A From 22 to 30 B From 31 to 40 C From 41 to 50 D Over 50 What is your gender? A Male B Female C Others Please indicate your marital status: A Single B Married C Others What is your current occupation? A Officers B Business C Workers D Others What is your monthly income? A Less than 10 million B From 11 to 25 million C From 26- 35 million D Over 35 million What you use credit card for? A Serving personal life B Others 30 Why you know about PVcomBank's service? A PVcomBank's Website B Referral friend C Good service quality D Reputable bank E Others How satisfied are you when using PVcomBank credit card? (1 - strongly dissatisfied, - strongly satisfied): The process of registering and using a credit card Confidentiality, information security Covenient service Fee for using the service Programs on incentives and promotions Easy to use Customer care level of employees 10 What problems you encounter when using a credit card? ……………………………………………………………………………………………… 11 Please indicate the criteria that you use the service of PVcomBank: A Prestigious and quality bank B Reasonable service fees C Many incentive programs for customers D Good customer criteria care staff E Others 12 Do you have any suggestions to improve and enhance the quality of PVcomBank's credit card service? ……………………………………………………………………………………………… 31 ... Account service International remittance Other products International settlement (Source: PVcomBank- Linh Dam Transaction Office) 1.2 Introduction of Linh Dam Transaction Office Name: PVcomBank - Linh. .. of PVcomBank 20 Table 2.3 KPI of Linh Dam Transaction office – Individual Customer Department from October to December 2019 21 Table 2.4 KPR of Linh Dam Transaction office – Individual. .. before transferring customer information to the card center to make cards for customers  Step 7: Send information to the card center: after receiving the information from the customer, the card