Improving service home loan to individual customers at vietinbank ba trieu branch

Professional bachelor degree In Finance – Banking – Insurance ( Customer relationships management ) WORK PLACEMENT REPORT VIETINBANK , BA TRIEU BRANCH “ Improving service home loan to individual customers at Vietinbank Ba Trieu Branch” Name of student: VU THANH HANG University year: 2017- 2020 Tutor at TMU: Dang Thi Minh Nguyet Tutor at UTLN: Marie-jose Cambreling Tutor at (Company):Le Viet Hung & Mai Thi Phuong Hanoi 2020 ACKNOWLEDGEMENT Firstly, I want to give a special thanks to Ms Marie-jose Cambreling and Mrs Dang Thi Minh Nguyet, who is my tutor and taught me a lot during the time I was in the process to complete this report You pointed out many important things without which I cannot finish my essay Besides, I would like to thank Mr Le Viet Hung & Mrs Mai Thi Phuong the branch manager of Vietinbank Ba Trieu for helping me completes my responsibility and also other supports during my 3-month internship process Even though I had a lot of mistakes but all of you still understand me and keep helping me unconditionally Lastly, I’m so happy because all of you helped me a lot during my intership and I really respect it i PREAMBLE My work placement or internship is performed during months at the Ba Trieu Branch of Vietinbank During these months, I was assigned various tasks in the retail banking division of the branch The area that I spent most time on is home loans With the help of my supervisor Mai Thi Phuong & Le Viet Hung at Vietinbank Ba Trieu and other staffs, I was able to acquire many new skills and knowledge in retail banking, especially home loans However, while handling home loan applications of customers, I also recognized a number of shortcomings at both the bank and branch level In this internship report, I will elaborate on the experience I have undergone during my internship at Vietinbank Ba Trieu, the skills that I have acquired and my contributions to the host firm’s retail banking division, especially with regards to home loans ii TABLE OF CONTENS Hanoi 2020 ACKNOWLEDGEMENT i PREAMBLE ii TABLE OF CONTENS iii LIST OF FIGURES v PART 1: OVERVIEW OF VIETINBANK AND BA TRIEU BRANCH 1.1 Company: Vietinbank 1.2Host Firm: Vietinbank’s Ba Trieu Branch 1.3Introduction of the internship a.The reasons to choose the topic: .2 b Objectives: c Internship plan Table 1: Summary of Work Placement at Vietinbank Ba Trieu PART 2: WORK PLACEMENT EXPERIENCE AT BA TRIEU BRANCH .3 2.1 Overview of home loans service at Vietinbank – Ba Trieu Transactions .4 Table 2: Result of Vietinbank’s home loan activities in 2017 – 2019 .4 2.2 Branch organization structure and my responsibilities: 2.3 Home loan with appraisal at branch: .5 2.3.1 Definition of “ Home Loan ” 2.3.2 Mortgage characteristics of Vietinbank .5 2.3.3 Conditions for a mortgage Vietinbank 2.3.4 Application for mortgage loan registration 2.3.5 Steps to consider a home loan application 2.4 Competitor analysis Table 3: Comparing interest rates for home loans 2019 2.5 SWOT analysis Table : SWOT analysis of Vietinbank 2.6 Mission during internship 10 Table 5: My daily jobs at the bank 10 MISSION 1: Get familiar with the routine office work start meeting, contact with customers 10 MISSION 2: Handling and processing home loans applications 11 Table : Business case 12 Table 7: Business case 13 iii MISSION 3: Marketing Campain 14 MISSION 4: Survey to find out customer needs 15 2.7 Commercial results 23 a My department’s KPI .23 Table 7: Quarterly KPI 23 b My commercial results 23 Table 8: My commercial results 23 c Advantages and disadvantages of the product 24 PART 3: INTERNSHIP’S RESULT 24 3.1 Internship results and experience gained 24 3.2 In term of operation .25 3.3 Achievement 26 3.4 Recommendation 27 CONCLUSION 28 28 LIST OF REFERENCES SURVEY INTERN ASSESSMENT FORM .3 iv LIST OF TABLE Table 1: Summary of Work Placement at Vietinbank Ba Trieu Table 2: Result of Vietinbank’s home loan activities in 2017 – 2019 .4 Table 3: Comparing interest rates for home loans 2019 Table : SWOT analysis of Vietinbank Table 5: My daily jobs at the bank 10 Table : Business case 12 Table 7: Business case 13 Table 7: Quarterly KPI 23 Table 8: My commercial results 23 LIST OF FIGURES Figures 1: Customer’s gender 17 Figures 2: Age group of customer 17 Figures 3: Marital status of customers 18 Figures 4: Customer occupation .19 Figures 5: Income of customer .19 Figures 6: Time to use the service 20 Figures 7: Factors of home loans that are of interest to the customer 21 Figures 9: Factors attract customers .22 v PART 1: OVERVIEW OF VIETINBANK AND BA TRIEU BRANCH 1.1 Company: Vietinbank a Host firm profile • Name: Vietnam Joint Stock Commercial Bank For Industry And Trade (Vietinbank) • Fax: +84 24 3942 1032 • Website: www.vietinbank.vn • Tel: +84 24 3942 1030 • Head Office: 108 Tran Hung Dao Street, Hoan Kiem Distric, Ha Noi city, Vietnam • Legal status: No 142/GP-NHNN issued by the State Bank on July 3, 2009 • Geographical development: Leading financial and banking group in Vietnam, on a regional level, modern, versatile and highly effective Being the no.1 Bank of the Vietnamese banking system, providing mordern and convenient financial products and services • Number of employees: 24.000 • Date of creation: 26/03/1988 b Strategy and Vision: - As a leading commercial bank in Vietnam, besides the goal of effective business and profit growth, VietinBank also contributes positively to the socio-economic development of the country; Together with the Party and the Government, improve the social environment, eradicate hunger and reduce poverty quickly and sustainably - VietinBank constantly improves its financial capacity, people, technology to meet the bank's and the society's sustainable development goals In 2019, VietinBank strives to continue fulfilling its obligations to the community, implementing social security projects and projects, embodying the business philosophy of "Improving the value of life" 1.2 Host Firm: Vietinbank’s Ba Trieu Branch a History of Ba Trieu Branch Location: 55 Ba Trieu Street, Hoan Kiem Distric, Ha Noi Date of creation: 09/07/2013 Number employees: 25 Geographical development: - Vietinbank 55 Ba Trieu Branch is located in a convenient location, with a spacious and modern facility, a team of young and professional employees to better meet the needs of customers The branch is able to perform the functions of a modern retail bank such as: account service, deposit, lending, payment, money transfer, remittance payment, foreign currency trading, translation card cases, electronic banking, - By the end of June 2013, the Branch had achieved positive business results: mobilized capital of over VND 40 trillion, outstanding loan and investment of over VND 46 trillion, bad debt controlled at the best level in the whole system 0.4% / total outstanding loans, profit of nearly 700 billion, showing effective business capacity despite the difficult context of the economy b Business operation of the branch: • Mobilize deposits in all forms • Currency exchange services, performing spot, swap or swap foreign currency contracts • Rapid remittance nationwide, remittances, non-trade remittances • Loans for working capital, medium and long term loans, loans under credit lines • Lending to support import and export, support enterprises to penetrate the market and invest in equipment to promote the integration process of the economy • Individual business loans, equitization, securities trading, consumer loans, home loans, cars, study abroad • Fast cash advances, mortgage loans, valuable papers 1.3 Introduction of the internship a The reasons to choose the topic: - Real estate market of Vietnam is a potential market with a population of nearly 90 million people and the demand for housing is growing In addition, Vietnam's economy is growing, the needs of people today not stop in "delicious dressed" but also a more comfortable place In any region, the demand for housing any of the people in Vietnam is huge by ancient thinkers, but not everyone is eligible to own shaking his dream house, so I decided to choose the topic : " Improving service house loans to individual customers at Vietinbank Ba Trieu branch " b Objectives: - Improve and raise awareness about the basic theoretical issues about lending and the effectiveness of home loans at commercial banks - Focus on researching and fully and comprehensively assessing the situation of lending to buy houses of real estate projects at Vieinbank Ba Trieu branch to draw satisfactory results Its limitations, causes and effects on home loan effectiveness to individual customers - Proposing solutions to improve the effectiveness of home loans at Vietnam Joint Stock Commercial Bank for Industry and Trade - Hanoi Branch c Internship plan Table 1: Summary of Work Placement at Vietinbank Ba Trieu Date Task/Mission MISSION 1: Get familiar with the From February 3rd to routine office work, start 20th meeting , contact with customers MISSION 2: From February 21st to March 31st Handling and processing home loans applications MISSION 3: From April 1st to April 20th Join Marketing Campaign Outcome -Study about the paperwork required for different bank transactions and services -Meet and solve customers problems, ensuring customers are sastified with the answers -Learn of the conditions for the home loans -Learn about interest rates on bank loans to buy house -Learn about the bank loan term home buying -Learn about the value of the loan -Learn about time bank loan application approved + Collect customer information + Guide customers prepare necessary proccedures + Customer appraisal + Loan approval + Lending decisions and disbursed -Understand what customer needs and what make them satisfied -Find out try to make them feel interested in bank’s product -Understand what customers think and what they expect on home loans MISSION 4: Conducting survey From April 21st to May 8th PART 2: WORK PLACEMENT EXPERIENCE AT BA TRIEU BRANCH 2.1 Overview of home loans service at Vietinbank – Ba Trieu Transactions Table 2: Result of Vietinbank’s home loan activities in 2017 – 2019 Unit: Customer number Criterion 2017 2018 2019 In 2018 compared to In 2019 compared 2017 Customers Ratio to 2018 Customers Ratio number (%) number (%) 250 14% 20 1% A Individual cilents mortgage real estate projects B Personal customer lending at the branch 1.850 2.100 2.120 2.100 2.428 3.551 - Looking at the above business result, we see that the proportion of individual home loan customers of Vietinbank is growing very fast, and hast the opportunity to the further promote in 2020 2.2 Branch organization structure and my responsibilities: As discussed above, Vietinbank Ba Trieu has a staff of 25 people Security is provided by private contractors who are not Vietinbank’s employees The organization chart is provided below: Director Offices Figures 1: Customer’s gender • Most female customers account for 60% of the total survey , the remaining 37% are male customers, % is the other gender( customers ) So we can see ,home loans are more interested by female customers Figures 2: Age group of customer • The majority of customers are under the age of 25, are students who have just graduated from college or just graduated, accounting for 56 % of the total number of customers The number of customers from 25 – 35 years old accounts for about 22% Customers from 35 – 45years old is 12% , the remaining 10% are customers over 45 (about 10 customers ) So customers are mostly young people in high demand for home loans 17 Figures 3: Marital status of customers • From the age survey , we see a lot of young customers, so the percentage of single people is 56,3% The customer is married with 58 people, accounting for 33%, the remaining customers in other relationship is 10,7% • Regarding work, my survey of customer groups is student and student, worker, office worker and civil shareholder, trade and business, retire The career survey is also a very necessary information in the development and improvement of banking services To bring customers that the bank needs to focus on, it is also a source of customers that can bring profits to the bank The proportion of customers who account for 43% is the majority of students, these customers have income from part-time jobs, income sources are not high, but they have high demand for bank loans to buy houses Office workers and civilian shareholders accounted for the second highest rate of 25% Workers make up an average of 16% , whil percentage is for business customers of 10% The rest are retired customers 7% 18 Figures 4: Customer occupation • Today, everyone's life is growing At the same time, the demand of the people is increasing Therefore, the average income has also improved compared to the previous period Because the number of surveyed students is quite high, the income from to million accounts for 49% The income level from to 10 million accounts for 27% Income from 10-20 million accounts for an average of 17% The remainder is over 20 million, accounting for 9% Figures 5: Income of customer 19 • My survey is available individual customers, so the proportion of customers dealing with Vietinbank for year accounted for a high rate of 51%, customers from 2-3 year accounted for 36% Finally customers from 4-5 years accounted for 13% • Due to the impact of the COVID - 19 epidemic, customers 'income was also dragged along, income from to million VND accounted for the highest proportion, which showed that customers' income is being low, so that Need to consult customers with attractive home loan interest rates suitable for income Figures 6: Time to use the service • Looking at this survey data, we can see that the percentage of customers from 4-to yeas of Vietinbank is very low Therefore, Vietinbank Ba Trieu branch needs to have more attractive incentive programs to attract customers to maintain relationships with perennial customers • The number of long-term customers of Vietinbank is not high, so to attract better customers, Vietinbank should have many incentive programs for long-term customers, for example: low-interest loans, gifts birthday, new year gifts 20 Figures 7: Factors of home loans that are of interest to the customer • In addition, I also survey customers about theirs satisfaction with bank services I gave four criteria: very satisfied, satisfied, normal, and not satisfied Looking at the chart we can see that the majority of customers are satisfied with the attitude of th staff, products, transaction space, website, security and promotions of VietinBank Ba Trieu branch • Due to the small branch space and the small staff, which leads to the time to take care of the affected customers, many customers have long wait and very dissatisfied feeback • The service attitude of the staff is higly appreciated by customers, which can show that Vietinbank’s staffs communicate well and enthusiastically with customers 21 Figures 8: Customer’s demand for home loan interest rates • Next , I surveyed customers about their home loan needs The proportion of customers who want to buy houses is quite high, about 75,5%, the remaining customers have no demand is 24,5% In addition, the proportion of customers who want to buy a house with a low interest rate is 73,5% Based on this data we can develop home loan programs with acctractive interest rate, to facilitate and attract more customers Figures 9: Factors attract customers 22 • Finally, I survey customers about the important factors to make customers happy • Most customers think that factors are factors of products and services, will be important factors that make them very satisfied • Next, the factor that the transaction network is rated by customers is also quite high, which will also make customers happy • Professionalism of employees and preferential programs with customers are also factors that are highly appreciated by customers employees who communicate well with customers, will attract more customers and also bring many benefits to the branch • Based on this survey, we can see that Vietinbank needs to develop the following factors: various product and services, transaction network, strong brand, customer incentive program, professional staff In order to make customers more satisfied and more comfortable 2.7 Commercial results a My department’s KPI Table 7: Quarterly KPI Categories Saving Loans New credit card user New account Unit VND VND Card Account KPI 52,000,000,000 40,500,000,000 80 120 (Source: Manager Report) The quarterly saving KPI of the Vietinbank BaTrieu is VND 52,000,000,000 It contributes by staffs in department and me as a assistant The quarterly loans KPI of the Vietinbank Ba Trieu is VND 40,500,000,000 It contributes by 25 staffs in department including me and my tutor b My commercial results Table 8: My commercial results Categories Saving Loan New credit card user New account Unit VND VND Card Account Result 208,000,000 3,210,000,000 18 My quarterly loan KPI of is VND 3,210,000,000 Account for 12.6% total KPI for loan of my department That is a good number for new beginner like me 23 Although my main mission is work on loan product but I have a change to work on counter staff for a short time so I contribute to the bank 208,000,000 VND for saving products and opening accounts Accounting for 0.4% total KPI for saving of my department That is a low number but saving is not my main missions so it is acceptable c Advantages and disadvantages of the product After a period of learning about the product and applying the product to the reality when working with customers, I found the advantages and disadvantages of the product as follows:  • • • • •  • Advantage Simple and convenient loan procedures Lending up to 10 billion Loan term is up to 25 years You can use the real estate that you intend to buy as collateral Determine the loan limit right when no collateral is needed Disvantages Home loans are a risky area, while collateral requirements are not fully met due to paperwork problems In addition, the length of the loan period is costly for banks • Home loans require credit officers with experience in professional operations While the staff at Vietinbank branch are young people who need training to improve the quality of human resources • There is no specific and clear marketing strategy, leading to a limited number of individual clients accessing and using the service • Difficulties in related policies and legal systems PART 3: INTERNSHIP’S RESULT 3.1 Internship results and experience gained a Internship results - In term of Vietinbank: 24 • Open success the marketing campaign with smooth operation • Have more data of potential customer • Have more opinions to improve the quality of services • The Vietinbank’s reputation and Ba Trieu Saving become closer to many new customers - In term of project: • Support successfully the Vietinbank’s marketing campaign of Ba Trieu Saving To sum up many valuable opinions to Vietinbank • Learn many soft-skills as negotiation, persuasion… from Vietinbank’s employee when they approach customer b Experience gained • Know more about the organizations and activities of Vietinbank, especially the Ba Trieu Saving services • Improve many skills, such as communication, negotiation and especially how to work together Before this internship, I just have had a little bit chance to work in the team, almost in individual It helps us know the way to solve the conflict, listen other opinions and many things to protect total benefit • I also have a chance to practice and improve many skills that I learned in university such as analyze data, Excel… • More confident when approaching the customer It is very useful, not only this time but also the working-time after • With a lot of situation, I win ourselves Such as, I haven’t ever directly approached the customers, I am so shy or when I go to reality in bank, many professional knowledge is over than what I learned in university and some point, I am really disappointed with myself and want to give up but I still try a lot and complete this project as good as I can c Difficulties - In term of organization • Hard to balance time between studying and doing project • Small and big conflicts about opinions and characteristic in my mind such as choosing a suitable title, methods to this survey… 3.2 In term of operation • Bank officer doesn’t supply the external information because of bank’s principle such as the data of customer 25 • Don’t know the suitable methods to out survey, as doing online or direct survey is more effective, which technique is as good as possible • Lack of soft skill such as communication, customer negotiation • Customer doesn’t want to answer the survey • Wrong answers from the customer • Lose the documents, data and the results of survey because some unexpected reasons such as broken computer • Overestimated budget because I don’t know exactly what need to printed, travelling too much to collect data • Vietinbank don’t permit for using some their techniques in my report because of their rule 3.3 Achievement After months internship in Vietinbank – Ba Trieu Branch, I have gained some achievements as follows: a In term of knowledge • The overview of Vietinbank in general and Ba Trieu Branch in particular • The development trend of Vietinbank • Understand more about professional knowledge of operations and services in Vietinbank, especially about Ba Trieu Saving (from characteristic, benefits, the competitors…) b In term of practice • Have more experience and improve myself after the internship • Introduce Ba Trieu Saving to many new customers, who haven’t ever known about this Service • Meet the bank’s representative and she support and direct us a lot about the necessary knowledge • Have the chance to approach the customers, improve many soft-skills as negotiation, communication, time management, etc • Have more chance to work in the group, know to listen another’s opinion and corporate between all the members in groups All activities are done because of the common objectives • Know to create the suitable questionnaire and choose the technique for a survey • Know clearly about customer’s demand and level of satisfaction 26 • Developing the team-work skill It is necessary not only the internship or job, but also the life of each member • Apply the knowledge I gained from the university to practice, see the difference between the theory and practice 3.4 Recommendation • Vietinbank should invest more about website:www.vietinbank.vn It’s closely channel between the customers with Vietinbank but in the recent months, this website always have problems • Spread more marketing campaign in social network because social network becomes more and more develop day after day but Vietinbank don’t have got the best out of it • May be Vietinbank need to have any program for loyal customer such as “Share program”: When customers introduce Ba Trieu saving product for others people, they will get a gift or something like that (Word of mouth marketing) • Vietinbank need to improve factors such as Promotions, after – sales programs, Customer service, Security, Process and procedure, Marketing, especially after - sales program to have more satisfy from customer 27 CONCLUSION Overall, the work placement at Vietinbank Ba Trieu has given me many valuable opportunities to develop my professional skills and knowledge I was able to get a hands-on perspective on the day-to-day work of a bank at the branch level I also acquired many valuable skills in the banking business ranging from filing, client relations, credit assessment and sales During the course of these months, I noticed some challenges and shortcomings at Vietinbank Ba Trieu and made some suggestions on them Some of my recommendations were implemented and brought about tangible commercial and operational results for the branch I am now much more confident of my competence as a professional thanks to the work placement program and the support of the manager at Vietinbank's Ba Trieu, Mr Le Viet Hung & Mrs Mai Thi Phuong, and all other staffs at the branch 28 LIST OF REFERENCES https://www.vietinbank.vn/web/home/vn/gioi-thieu https://www.vietinbank.vn/vn/ca-nhan/premium/san-pham/cho-vay-nha-o https://topbank.vn/tu-van/lai-suat-vay-mua-nha SURVEY Full name: Please specify your gender: Male Femal Other Please specify your age: Under 25 From 25 - 35 From 35 – 45 Over 45 Please specify your marital status: Single Married Other Please specify your occupation: Pupils and students Worker Office workers, civil cervants Trade, business Retirement How much is your monthly income – million VND – 10 million VND 10 – 20 million VND Over 20 million You have transacted with Vietinbank during year – year – year Please provide your assessement of the following aspects of home loan service at Vietinbank w Very Satisfied Normal Not The attentive and devotional service satisfied    satisfied  attitude of VietinBank staff Professional staff make clear advice,     accurate transactions Quick service time Clean, cool and comfortable trading         space Simple and quick procedure Considerate customer service         (promotions, gifts, ) VietinBank website interface is     manageable and convenient Safe & secure transactions     Do you plan to buya house in the future? If yes, you plan to buy an apartment or real estate? Yes No 10 If Vietinbank has a home loan package with customers with many incentives and low interest rate, would you consider particating? Yes No 11 According to you, which criteria attract customers will transact at Vietinbank Very Satisfied Normal Not - Various products and services - The convenient, large-scale transaction satisfied       satisfied   network - Strong brand name and reputation -There are many preferential policies, and             customer care programs   - Enthusiastic and professional staff   - Social responsibility INTERN ASSESSMENT FORM ... EXPERIENCE AT BA TRIEU BRANCH .3 2.1 Overview of home loans service at Vietinbank – Ba Trieu Transactions .4 Table 2: Result of Vietinbank? ??s home loan activities in 2017 – 2019 .4 2.2 Branch. .. real estate projects at Vieinbank Ba Trieu branch to draw satisfactory results Its limitations, causes and effects on home loan effectiveness to individual customers - Proposing solutions to improve... data, we can see that the percentage of customers from 4 -to yeas of Vietinbank is very low Therefore, Vietinbank Ba Trieu branch needs to have more attractive incentive programs to attract customers