Government orientation in developing banking servi- 123docz.net

CHAPTER 3: SOLUTIONS FOR DEVELOPING BRAND OF ABBANK

3.1 Orientations develop banking industry in coming time

3.1.2 Government orientation in developing banking services

In recent years, with reinforce strongly modernization of banking technology, application of information technology in banking operations and expanding networks of banks have made chance to develop new and modern banking services. Appearance of modern and multi facilities banking services such as: ATM, Internet Banking, Home Banking, PC Banking, Mobile Banking…has made a new era in develop banking service market in Vietnam. Retail banking services are concerned bay commercial banks and focus on exploiting, payment instruments and payment services are based on modern technology has made new appearance for payment services of Vietnam banking industry. Development of banking service in people is one important part of strategy in develop banking service in Vietnam from 2010 to 2020 of Vietnam government.

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Objects are approached and used banking services in the economy are more expanded, beside customers are state own enterprises, more and more customers are private enterprises, un-stated companies, small and medium size enterprises and business householders. Technology infrastructure in general and information technology in particular, national telecom system is weak and non-synchronous and has much limit. Therefore, it cannot support to process of development and enhancement banking service quality, although has considerable improvements but development speed and information technology application in banks are low.

Technical infrastructures are weak; speed is low, expensive costs, unstable service quality and did not meet requirements of innovations in banking system as well as did not meet requirements in integrations into area and international.

Automatization level of banking transactions are low, many professional competence processes of banks are built based on hand process or low technology level and not suit to modern technology. At present, national payment system and payment system among commercial banks has still defects and not modernized comprehensively. It is difficult to connect networks among banks each other in order to make convenience for customers when using banking services.

Management information System still has not met requirement of business management and strategic planning. From this status, the government has orientations in develop banks as following:

a) Orientations develop mobilization services

First, banking system need consider the important and strategic objectives of itself. In so doing, Vietnam banking system must make sure capital source for economic development process in Vietnam in coming years. Each bank must prepare building development strategy of long-term capital source, so long that strategy is suitable to demand and ability of the bank. Especially, the bank must focus on exploiting the mobilization in the people, because, this is potential market.

Some orientations in developing mobilization services in the people as following:

 Diversify capital mobilization forms in order to maximize the mobilization of leisure money sources in the people, which are accumulated in gold, foreign currencies. To do that, the banks have enough ability to meet credit demand of the economy as well as increasing the ratio of VND in total capital source.

 Continuing give new types of capital mobilization products, which have high technology content/ratio and bring many conveniences for customers such as: accumulated saving products, insurance savings, Autobank deposit (now VIETCOMBANK has applied in reality), ladder savings, award saving, in which focus on reducing mobilization cost, reform banking transaction procedures in order to have fast and neat services but make sure safe and effective.

 Increase to expanding branches and transaction offices network. Opening contact centers between customers and banks in order to serve the customers at the best level.

 Training and building banking employees system, in which people are fluent on professional competence skills and knowledge as well as foreign language, informatics. Enhance consultant level of banking employees to customers. since then have enough condition to work at best, increasing diffuse broadly, focus on marketing , selling products to personal customers , through good brand image of banks or convenient and benefit services and suit to necessary demand of the people the banks have special policies to traditional customers in order to encourage people to send money through banks.

b) Orientations develop credit services in people

 Develop and expand broadly retail banking services in which focus on developing consumer credit services such as loan with house mortgage, loan without mortgage, home loan, Hire-purchase loan, lending through credit card, certificate of deposit loan and mortgage loan saving …

 Having a consistent policy to manage concentrative and segment customers by branches networks.

 Develop new credit products base on modern technology basis such as:

personal account combine with added value services such as payment, card, service bills or asset management, automatic investment account, manage capital concentrative, develop new conveniences of ATM card for customers and develop guarantee lending service of, mortgage loan.

 Continue expanding credit and make chance for borrowers who in all economic elements, especially who are inhabitants and small and medium size enterprises to approach credit capital of banks based on market principles.

 Reject credit supports, narrow object of priority, separate clearly between policy credit and market credit.

 Guarantee all loan must be based on correct evaluations about financial situations not based on political decisions even to private loan in order to make sure reasonability and payment ability of financial system for long term benefits of the whole economy.

 Diversify credit services for enterprises and people, make chance for all organizations and individuals, who have demand to borrow money from banks (do business legally, have enough conditions to pay banks) have chance to approach credit capital of banks at the most favorably.

 Studying, building and displaying all credit programs for private economic zone. Banks expand business to all areas in nation wide, especially to remote areas, make people have chances to approach to services of banks, since then they have more much perceptions of banks and benefits of banking services to their lives.

 Banks and credit organizations must abide absolutely by restrictions about safety of banking operations. Innovating regime, credit policies, credit producers forward simple, convenient, and suit to business

characters and customers groups of banks and credit organizations. To do that, make customers feel comfortable and confident not discreet when come to banks to borrow money or do other transactions.

c) Orientations develop payment services

 Develop strongly services which payment through banks, payment without cash, base on technology system and system of modern, safe believable banking payment, all systems suit to international normal practices and criteria.

 Enhance payment facilities through banking in order to encourage types of economics, especially encourage people using payment service through banking in order to reducing cash amount in the market.

 Banking industry must soon national payment center in order to unify all electric payment means through banks. Intensify cooperation and associations of all providing payment service organizations and especially soon establish a card payment system among banks.

 Increasing the number of organizations accept cards providing that card users can use their own cards at every where from restaurants to , trade center, supermarkets and so on, instead of in some points as now by combining all organizations which supply banking services with offices and enterprises in society.

 Banks must often considering and adjusting regulations which relate to terms of payments without cash in order to suit to real conditions and make customers feel comfortable, safe and convenient when using that means and services of banks.

 Banks must have well preparation to deal with crisis or bad situations and make confidence in customers who use banking services.

 Having safe measures of website, guarantee personal secret in electric transactions. Establish an effective security wall in order to against

innovation of hackers as well as make sure using payment means through electric transactions at the most safely.

 Propagandize about facilities of payments without cash in daily life.

combine with other organizations to making plan in enhance degree of people and help them understand clearly as well as having enough perceptions in banking services in market. Although it is difficult to make people change habits but when they recognize the benefits and facilities, safety…of banking services they will accept change and approach more services of banks.

d) Orientations develop exchange currency services

 Maximize focus foreign exchange source on banking system in order to meet the demand of foreign expenditure of enterprises and individuals at the reasonable level and control selling and buying operations of foreign exchange effectively, since then reduce situation of abusiveness of dollar.

 Guarantee proprietary, buying, selling and using foreign exchange rights of enterprises and person by law regulations.

 Continue to make conditions for Vietnamese people who live in oversea send foreign money to Vietnam.

 Diversify all kinds of foreign exchange mobilizations through banks, individual, organizational accounts. Reinforce making relationship with foreign partners, enhancing banking service quality such as western union, express transfer, direct payment, reduce charges, simplify all receipt producers, develop network of payment broadly; restrict smuggling transactions of foreign currency. At the best level by checking, controlling and supervising often all operations of foreign currency payments (money from oversea Vietnamese people).

 Beside development of banking services diversified, plentifully, conveniently with reasonable costs in order to attract foreign currency in

combinations between foreign currency policy of management and reasonable interest rate policy of banks.

 In the long term side, it is necessary to control dollarization situation by carrying out correctly about foreign currency and permit customers draw money in Vietnam dong when have dollar is sent from oversea.

Managing tightly al foreign currency operations in Vietnam market in order to belong dollar.

e) Orientations develop different banking services

 Develop non-bank financial services (insurance business, security – brokerage business, issuing, lending, cash management, investment list management, financial and investment consultancy, asset management , gold business or asset management by customers‘ authority and so on) and these are considered importantly and as an important support in business strategy of Vietnamese banks in order to diversify income and revenue structures, diversify business operation, expanding customers basis to enhance exchange ability, risk management, and increase income for banks.

 Develop diversified banking service system combine with non-bank financial services; establish packaged and diversified banking service system to meet demand of society about financial services in order to encourage organizations and individuals save and invest assets effectively base on basis of expanding rights Of approach financial service, banking and business opportunities.

f) Orientations develop banking services market and considering served customers of banking system

 Permit individuals and organizations have rights to approach banking service market.

 All organizations both inside and outside Vietnam have demand providing banking services and have enough ability under state regulations and Vietnam law are permitted to participate in provision of banking services.

 With commitments when jointed in WTO, Vietnam has to behave fairly among domestic credit organizations, banks and foreign credit organizations and banks about banking operations in general and banking services in particular. Simultaneously, reject basically all restrictions in approach domestic banking services.

 Perfect all types of credits and form of effective banking service provisions, especially perfect micro financial organizations and development institutions of finance in order to guarantee banking service approach ability of customers , simultaneously, support to priority customers as well as potential customers who are more likely make growth and competitive ability for the economy.

 Served customers of banking system consist of all organizations and individuals have demand about banking service and are treated fairly and approach non-limitedly to baking services.

Government orientation in developing banking services

Yin and Yang Model to Branding

History and development process of ABBank