CHAPTER 1: BASIC THEORETICAL ISSUES OF DEVELOPING NON-
1.3. EXPERIENCE IN DEVELOPING NON-CREDIT SERVICES AND
1.3.1. Experience in developing non-credit services of banks around the world 1.3.1.1. Hang Seng Bank (Hong Kong)
Hang Seng Bank (Hong Kong) is one of the main members of the HSBC Group.
Hang Seng Bank is one of the largest banks in Hong Kong and a world-class bank.
Hang Seng Bank focuses on developing high-tech non-credit services that is given the top priority to providing information of services to customers such as online personal customer service, SMS banking, Apple Iphone, HSBC net, e-IPO service,
e-banking security, e-market news, Hang Seng ecard, package services and investment capital management, online consultancy, payment and tax declaration, etc. at reasonable and competitive charges. Customers can download software applications free to use the online service of Hang Seng Bank anytime and anywhere.
Hang Seng Bank undertakes to ensure the confidentiality of customer information and transaction history.
Hang Seng Bank promotes the development of specialized insurance services, mainly long-term insurance services from 5 to 15 years. Insurance policies provide Hang Seng with charges and relatively stable and long-term funds. In 2011, Hang Seng’s net Revenues from insurance services was HK$ 11,061 million (US$ 1,428 million), accounting for 62.5% of total non-credit income and 32.5% of total operating revenues of this bank.
The net interest Revenues from non-credit services at Hang Seng Bank accounted for 51.7% of total operating revenues in 2010 and 53.1% in 201.
1.3.1.2. Standard Chartered Bank
Standard Chartered Bank is one of the very successful banks in non-credit banking business. Standard Chartered Bank focuses on high-tech services. According to statistics, over 60% of its transactions are made via automated channels.
Standard Chartered Bank always pays attention to exploiting the development of modern technologies. Standard Chartered Bank has established a network of automated distribution channels such as Deposit Machines, Internet Banking, Phone Banking, Home Banking, Deposit Machines, ATMs, oral transaction guidance via SMS, etc. to serve customers. The use of these automated transaction channels brings efficiency, security, exclusivity and utility to the customer.
Prior to working with customers, Standard Chartered Bank takes the time to understand the specific circumstances of the customers to be able to build a separate software package for them. The goal of the bank is to create a partnership that goes beyond purely financial aspects and its approaches are determined by a firm commitment to customers’ future goals.
Standard Chartered Bank has a large network of branches in more than 70 countries around the world but is currently expanding its presence in Asia, Africa and the Middle East.
Standard Chartered Bank researches a wide range of niche products for each customer group such as individual customers, small and medium enterprises, treasuries, prioritized corporate customers, banks, Islamic customers.
Standard Chartered Bank has enhanced the introduction of its image through charitable activities and sponsorship for the Liverpool Football Club, Carling Cup Champions (2011, 2012).
In 2010, Standard Chartered Bank’s net interest Revenues from non-credit services was 42.4%, accounting for 51.7% of total operating revenues. In 2011, its net interest Revenues from non-credit services was 37.9%.
1.3.1.3 Non-credit service development of Hong Kong & Shanghai Bank (HSBC) Founded in 1865 with the headquarters located in London, HSBC is one of the largest banks in the world that provides the largest banking and financial services.
HSBC has nearly 10,000 branches in 100 countries and territories across the continents. To become “one of the leading financial service providers in the world”, in addition to commercial banking operation, HSBC has focused on developing services such as personal finance, consumer finance, corporate finance, investment banking and foreign exchange business, services for special customers. In particular, the global services include ATM cards, payment transactions, insurance, asset management, etc. As a result, HSBC has created a very diversified income structure, of which the revenue from customer service is only 24% from commercial banks, 33% from corporate sponsorship and from financial market business, 39%
from personal financial services and consumer financial services, 4% from special customer service.
1.3.2. Lessons for Vietnamese commercial banks
From the banking service development methods of some banks in some above countries, we can summarize and draw some lessons for Vietnamese commercial banks as follows:
Firstly, build and perfect the legal environment for banking services, especially e- banking.
Secondly, create the necessary infrastructure for the banking service development, especially tools and facilities associated with and based on information technology.
Thirdly, develop and improve the management capacity and professionalism of bank officers and employees.
Fourthly, diversify the service products, connect the modernization of traditional services and modern services.
Fifthly, focus on properly and develop the network rationally. The reasonable network expansion is both a basis and a prerequisite for the banking service development.
Sixthly, have a proper customer policy. In particular, it is necessary to focus on building and developing customer information to expand customer network and provide safe and effective banking services. Focus on the increasingly diverse and specialized needs of customers in the increasingly growing economy.
Sevenly, focus on the propaganda and promotion of the banking service utilities in the public. To expand and develop banking services, it is essential to make the public understand the facilities and safety of using banking services.
Eightly, design the reasonable price methods. The non-credit service price includes service supply fees and exchange rate. Banks should provide reasonable and competitive charges and exchange rates.