3.2. Solutions for implementation by Agribank
3.2.4. Comprehensive solutions and customer classification
Gen Y customers are born between 1982 and 2000. They account for more than 25% of the global population, and the distribution of each region also accounts for a large proportion, with Asia accounting for 18%, Africa is 20%, North America 15%, Oceania 16%, Latin America 18%. This generation is gradually forming a large market and in the next 10 years they will be the main driving force of global economic growth from consumption, financial services, savings and investment.
Key characteristics of Gen Y customers in the bank: (i) They like to earn money. In every six of the 10 Genes Y in the surveyhas told that, money is very important to their lives. This is the motivation for them to work hard and use many financial services. (ii) They like the online capabilities of every bank transaction. Gen Y likes to use online banking rather than traditional
banking. Statistics show that 89% of Gen Y use online banking, and they prefer to open their online bank accounts (about 30% of Gen Ys try to open online deposit accounts, 35% are in the age of 18-24). (iii) They are very knowledgeable about technology. Most Gen Ys own personal computers and smartphones, and they spend most of their time messaging, chatting, watching videos, surfing the web, blogs, etc. According to research by Lemon Tree Marketing Group on internet connections, social networking, email: 75% Gen Y has personal information on social networks; 83% of Gen Y go to bed with a smartphone. (iv) There are several indications that the level of confidence of Gen Y in the bank is higher than that of previous generations. Approximately 46% of Gen Y generations believe in the banking system, compared to 33%
of the older generation, which is a good signal relative to the rate of introduction and use of financial services in the future. (v) They are less likely to be satisfied with the financial institution they are dealing with. Only 38%
of Gen Y are satisfied with their bank, which is comparable to the satisfaction of 40% Gen X (1965 - 1980) and 50% Baby Boomers (1946 - 1964). (vi) They like regular reporting. Gen Y likes to receive all kinds of email and SMS notifications, about 38% of Gen Y requests for notification by modern means of communication to remind unpaid debts or debts.
Gen Y customers in Vietnam have a number of 33.8 million people and they also have the same characteristics as Gen Y customers in the world such as:
Age: from 15 to 34 years old; Expenditure: food (26%), fashion (13%), communication and technology (13%), entertainment (12%) ...; Distinctive features: technology savvy, social networking, pre-spending - saving later (spending through online stores more and more), need regular help with financial advice. The age distribution of smartphone ownership is 81% at ages 18-29, 68% at 30-49, 40% at age 50-64, and 11% Age 65 and over.
3.2.4.2. Exploiting E- Mobile Banking in many facilities besides Smart Phone In order to catch up with the rapid growth of mobile phones and the ability to update the technology of young people, E- Mobile Banking Services need to provide a variety of applications compatible with the phone line and Popular devices such as iPad, iPhone, Android phone, Android tablet; The phone with Java operating system makes it convenient and easy to set up when registering for E Mobile Banking.
In addition to the basic features of E- Mobile Banking, banks should pay attention to the value of experience and increase utility for customers. This will be the "golden key" to exploit E Mobile Banking service optimally.
According to Varoli Corporation, 52% of smartphone and tablet users downloaded the E- Mobile Banking application, about 40% said they were thinking of deleting these applications. And application dissatisfaction is even higher in the Gen Y segment.
With this new approach and from the above analysis, Mobile Banking applications not only provide basic financial functions such as 24/7 money transfer; management of the beneficiary list; phone recharge but also provide non-financial facilities such as ATM, branch search, automatically locate the customer's location and guide the nearest route to ATMs, points of sale, etc.), entertainment (football predictions result, games, newsreaders ...); display interest rates on deposits, exchange rates even if customers are not connected to the internet, intelligent filter trading histories weekly, monthly ... and especially the ability to exchange information, share pictures, sound, chat online with OTT technology (data communication solutions on the internet platform background). To this perspective, application has escaped from the framework of a conventional electronic banking product.
Along with that, banks should expand cooperation with various service providers to deploy payment on E Mobile Banking, E Mobile Payment and
allow customers to register for E Mobile Banking on electronic channels such as Internet Banking, Phone Banking, USSD, Digital Branches ... or even in shops cooperated with banks.
E-Mobile banking is no longer a new direction and bringing new gadgets into the hands of banks is a matter of concern. However, what banks need to overcome is to deal with the concerns of the security of the application and increase confidence in the transaction of customers. These are the two biggest barriers to KPMG's survey with retail banks around the world.
In order to increase the security of the Mobile Banking service, during the transaction, the messages need to be encrypted in combination with the use of other security measures such as adding a PIN or a one-time password (OTP- one-time password). In addition, this transaction may be accompanied by other security measures such as password matrix (Matrix - Password). In addition, in the coming time, banks should continue to launch new gadgets on Mobile Banking based on OTT technology.
CONCLUSION, LIMITATION AND IMPLICATION
1. Conclusions
Over the past years, cashless payment has confirmed the great role of payment process in economic units in particular and in other sectors in general. Bank-related activities bring about practical benefits for socio- economic activities and identify the priority sector for development. Cashless payment is one of commercial banking operations with safe, convenient and fast features that accelerate the process of capital flow, reduce the time of capital accumulation of enterprises, and help the Bank increase its control over the currency in the circulation process.
Agribank has the advantage of network covering nationwide, the number of customers, the number of accounts being used, and the technology platform being invested as the modern IPCAS system as well. Agribank has the ability to develop cashless payment activities in the urban and rural areas as well. Improving business efficiency and social objectives such as modernizing the industry, modernizing the society towards a more civilized and convenient society.
The proposed solutions include:
The solution that Agribank has is considered as a consultant that advises the government to issue documents applying cashless payments for public activities of the government and the people.
Agribank itself canundertake many solutions such as the development of cashless payment services in rural areas, to take advantage of the vast network and number of under-served customers in the relatively affluent population. At the same time, Agribank had to re-train its staff to catch up with the new era.
Agribank should also improve its current weaknesses such as transaction limits, branch concept and some important issues to satisfy the customers' needs.
Agribank should also classify its customers and focus on Gen Y customers, providing E- Mobile Banking services on smart devices instead of Smart Phones.
2. Limitations
The author wants to mention about time and resources completing the thesis, because the thesis is the result of her self-research, not a group of authors.
There are limitations of time and resource as well. Data used in the thesis were collected from various sources and the author could not collect the latest data because banking is at a large scale, therefore, the collection of latest documents was not easy and it took lots of time.
3. Implications
A recommendation for further study would be to broaden the research to other commercial banks in order to generalize the study. A recommendation would be to conduct the study within a number of different banking systems in Vietnam. Future studies should have a larger representative sample to increase the accuracy of the findings. Recommendations for further studies would be to also use comparisons of different age groups in the society to determine reasoning behind various perceptions, to uncover the factors behind high usage of cashless payment methods or reasoning for low usage of cashless payment.
Recommendations to reduce the limitations faced with cashless transactions would be the implementation of higher security standards and a method of necessary identification when using specific cashless payment methods such as contactless. The research identified that specific advantages perceived by the participants regarding physical cash were the direct links with precautionary spending. An additional recommendation for future studies to find ways to reduce limitations faced with the preferred payment method
would be by conducting further research into the methods of financial planning and budgeting. This would gain insight to the ways financial satisfaction could be reached through the use of cashless payment methods.
Further research should uncover ways in which precautionary spending could be achieved with the use of alternative payment methods than physical cash.
REFERENCES
1. Agribank Financial Statements Audited for the year 2016 and 2017 by Earn & Young Audited Company Limited.
2. Decision No. 2545/QD-TTg dated 30 June 2016 signed by The Viet nam Prime Minister.
3. Ngo Vi Dung (2018), Quantitative and Statistical Research methods, Hanoi School of Bussiness.
4. Agribank Cultural Handbook by Agribank 2016.
5. Nguyễn Hữu Tài (2002), Financial and Cash Theory, Statitic Publisher, from Ha Noi National Economic University.
6. Le Vinh Danh (1996),“Cash and banking operation ”, Finacial Publisher.
7. Frederic S.Mishkin(2015),“the Economic of Money,Banking and financial market”
8. Website: https://www.vnba.org.vn 9. Website: https://www.agribank.com.vn
10. Duong Hong Phuong (2013),Banking Magazine, Ha Noi.