CHAPTER 2: DIGITAL BANKING IN ASIA COMMERCIAL JOINT STOCK
2.4. OPPORTUNITIES AND CHALLENGES: BASED ON CUSTOMERS’
I conducted “a deep interview” with customers of ACB Thang Long Branch to truly grasp what they think about ACB ONE – ACB's digital banking. Based on the results of this private interview, we could determine how customers feel about ACB ONE, whether they will choose to stay with ACB ONE, and whether anything about this digital banking needs to be adjusted. As a result, everything that customers experience contributes significantly to ACB's digital banking development.
Customers who have had and still have a credit relationship with ACB Thang Long branch, and who are under my responsibility, including 02 corporate customers and 02 individual customers, were interviewed. These in-depth interviews will allow us to gain a better understanding of the diverse experiences of each type of customer. As a result, ACB will be able to strengthen its relationship with these customers because they will believe that ACB is always listening to their feedback and is committed to taking care of customers in ways other than work. Based on direct interactions between the consumers and myself, this "deep interview" was totally recorded by hand. The focus of this private conversation will be on the customer's experience and feelings while using ACB's digital banking platform, ACB ONE, as well as if the client wishes to change or continue to promote anything from ACB ONE.
First, I interviewed two companies in the corporate customer segment: Hoang Viet Co., Ltd. and New Century Organic Vietnam Co., Ltd. Both of these companies have a credit relationship with ACB Thang Long Branch, and they have been working together for a long time, based on professionalism and mutual trust. Furthermore, according to branch statistics, they are two of the clients who contribute the most to the branch's earnings, roughly 300 million VND per customer per year.
- Hoang Viet Co., Ltd. is a construction materials company that specializes in steel and iron. From 2010 to the present, this consumer has only had a credit arrangement with ACB. Mr. Nguyen Duc Nguyen is the firm owner, but Ms.
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Trinh Thi Phuong Loan, the direct manager, is the same person with whom I did this secret interview. Ms. Loan was thrilled to be a part of this conversation. Ms.
Loan stated in the interview that she enjoyed using ACB's products/services, that she was a busy bee, and that she frequently had to make transactions through her account. Her transaction frequency per week at the bank is extremely high, as is the transaction volume. Ms. Loan stated that she enjoyed the design of ACB ONE; the digital banking platform appeared to be very young and current, which suited her particular style. When I asked if she found any drawbacks to using ACB's digital banking, she said it was a bit waste of time to transfer money in excess of 1,500 million VND and then have to switch to the ACB ONE web version, which would be pretty inconvenient for someone like Ms. Loan and Hoang Viet Company, who deal with large transaction volumes frequently. "I don't see any disadvantages," Ms. Loan said. "The problems are quite acceptable."
- Since 2019, New Century Organic Vietnam Co., Ltd., whose major business is exporting cinnamon and star anise to India and Iraq, has had a credit relationship with ACB. Despite only having a three-year credit relationship with ACB, this customer has provided consistent earnings to the ACB Thang Long branch and created deep personal ties between the business owner and all of the branch's workers. Ms. Nguyen Thu Hien, the director, and I had an interview; the interview went well, but Ms. Hien also had some personal opinions that she wanted to share. According to Ms. Hien's account, as an elderly woman, she was less concerned with looks and more concerned with application. Ms. Hien expressed her dissatisfaction with the fact that money transfers required two applications, which she described as "quite unpleasant." Furthermore, ACB frequently experiences money transfer difficulties; normally, when moving money to state-owned banks, there are always tracing errors, money is withheld, and enterprises in general, including Ms. Hien's, are barred. Interruptions in transactions have a significant impact on payment reputation.
I invited two customers for the individual customer segment: Ms. Tran Thi Thanh Hien and Mr. Ta Huu Ngan, a long-time ABC Thang Long customer. These two
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customers have loans totaling more than 10 billion VND at the ACB Thang Long branch, and they both utilize ACB's products and services frequently. Ms. Hien and Mr.
Ngan shared similar viewpoints throughout the interview because they utilize ACB ONE on a daily basis for transactions, bill and utility payments, and insurance purchases, online savings or insurance. Ms. Hien and Mr. Ngan both felt that ACB ONE had all of the necessary features and utilities to meet the needs of business owners like Ms. Hien who frequently conduct money transfer operations. She discovered that ACB's transfer speed is really quick if there were no trace errors or glitches. She said that ACB ONE was the fastest bank for money transfers, compared to Vpbank, Tpbank, and BIDV, which she also used. Mr. Ngan agreed with Ms. Hien's viewpoint and said that ACB was considerate of customers' fears of losing their money, thus he thought the ACB Safekey application - "double security" was the ideal option for him to save his high average monthly amount.
We may realize that ACB ONE is not ideal, as shared by two business customers, Hoang Viet and Organic, and that it still has issues that need to be resolved. In truth, all of these issues exist and affect numerous customers in the system. Other banks, as well as ACB, have limitations in their digital banking, yet, customers do not perceive these limitations as a reason to leave the bank. The table below will sum up the perspectives of interviewed customers in using ACB’s digital banking:
Table Error! No text of specified style in document.-4: Customers' assessment
Unsatisfaction Satisfaction
- Tracing error - Half integration - Financial risk
- Personal information risk
- Modernization - Convenience - Transaction speed - Eye-catching interface - Biometric log-in
(Source: Online Survey and Interview) These mentioned factors are quite similar to the strength and weakness of ACB’s digital banking. To fit the wishes of customers and ACB's direction, ACB should critically review and re-evaluate the adjustment strategy. Furthermore, we have a more
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objective picture of the amazing experiences that ACB ONE has delivered to customers, especially in meeting customers' everyday life demands, such as paying bills, buying plane tickets, and so on, based on the sharing of two specific customers, Mr. Ngan and Ms. Hien. Based on customer feedback and ideas concerning payment methods and tracing problems, ACB has to develop a strategy to address customer feedback and suggestions about digital banking so that it may strengthen its credibility in customers' eyes and promote customer loyalty. When people still care, they will express their perspectives, so that ACB can try to improve things. Moreover, it is shown clearly in my conducted survey that most of the customers feel satisfied with ACB’s digital banking, in general.
Figure Error! No text of specified style in document.-10: Customers’ satisfaction
(Source: Online survey)
Very poor, 0%
Poor, 0%
Normal, 12%
Good, 28%
Excellent, 60%
CUSTOMERS' SATISFACTION
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CONCLUSION OF CHAPTER 2
The main contents of Chapter 2 as analyzed, including the Asia Commercial Joint Stock Bank's commercial performance, strengths and weaknesses, possibilities and problems in expanding digital banking. In addition, objectively assessing strengths to capitalize on them and avoid turning them into challenges, so that ACB can continue to develop their digital bank in a more comprehensive way, in order to serve customers more easily and thoughtfully, with the goal of having a digital banking system that all customers trust.
Through analyzing the current situation, the indicators and all the factors contributing to the opportunities and challenges in the developing of ACB's digital banking, especially the assessment of interviewed customers to ACB ONE, we can admit that ACB is worth to customers’ trust, which has partly reflected by the growth rate of business activities in the first quarter of ACB, and through the survey at ACB - Thang Long branch, we can see that the customer market share has tended to increase stably since the launch of ACB ONE in February 2022. In addition to the results achieved based on the shortcomings pointed out in Chapter 2, ACB still needs to take specific actions to overcome those shortcomings, using that as a springboard to overcome challenges and progress in the development of digital banks.
As a result of the existing problems, opportunities, and challenges of ACB in developing digital banking, which were highlighted in Chapter 2, this chapter 3 will make recommendations on how to take advantage of strengths and opportunities, which will serve as a springboard for ACB's digital banking development, in order to become stronger and stronger, or to focus on weaknesses and challenges, in order to overcome them and avoid turning weaknesses into challenges.
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