Developing banking services at Nam Viet Commercial Joint Stock Bank - 3
Bank guarantee: is a form of credit extension, whereby the credit institution commits to the guarantee recipient that the credit institution will perform the financial obligation on behalf of the customer when the customer fails to perform or does not fully perform the obligation. committed service; the customer must accept the debt and return it to the credit institution as agreed.
Factoring: is a form of credit granting by a credit institution to the seller through the redemption of receivables arising from the purchase and sale of goods agreed upon by the seller and the purchaser in the contract. sales of goods.
– Financial leasing: banks provide financial leasing services to organizations and individuals through their financial leasing companies. This is a medium and long-term credit activity on the basis of an asset leasing contract between the lessor and the lessee.
1.3.1.3 Banking services on payment and treasury
– Service of payment via account: is the provision of means of payment, the performance of services for payment of checks, payment orders, payment orders, collection orders, collection orders, bank cards, letters of credit and other services. other payment services to the customer through the customer’s account.
– Treasury service: the bank provides cash collection and payment services to customers to serve the needs of depositing and withdrawing savings, payment accounts, loan repayment, money transfer, foreign currency exchange. .
1.3.1.4 Banking services on foreign exchange
– Spot foreign currency trading service (Spot): is a service in which two parties buy and sell an amount of foreign currency at the spot exchange rate at the time of transaction and finish the payment within two working days. next.
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– Service of buying and selling foreign currency with term (Forward): is a service in which two parties buy and sell a foreign currency amount at a specified exchange rate and the payment will be made at a specified time. determined in the future.
– Foreign exchange service (Swap): is a combination of a spot transaction and a forward transaction simultaneously. A currency is converted into another currency in a certain time, by concurrently signing a contract to buy (sell) that same currency at another time in the future with a forward contract.
– Foreign currency options service (Options): is a service in which a bank will sign an option contract with its customer to buy or sell foreign currency at a certain amount, exchange rate and term. determined, but leaves the option to the customer. That is, giving customers the right to decide whether or not to perform the signed foreign currency trading contract. At the same time, the customer must pay a fee to the bank immediately upon signing the contract.
1.3.1.5 Other services:
– Cash management services, banking and financial consulting; management services, preserving assets, embroidering cabinets, safes.
– Corporate finance consulting, buying, selling, consolidation, merger and investment consulting.
– Buying and selling government bonds, corporate bonds.
– Currency brokerage service
– Securities depository, gold trading and other business activities related to banking activities after being approved in writing by the State Bank.
1.3.2 Modern banking services
1.3.2.1 Electronic banking services (E-banking)
– Phone Banking: is a service to answer necessary information for customers through an automatic answering system operating 24/24. Customers will be introduced to information about banking services, service manuals, account information, interest rates, exchange rates, money transfers, customer support services… 07 days/ week, completely free.
– Home Banking: is a service that allows customers at home or corporate office to still query banking information such as exchange rate, interest rate, fee schedule…, perform money transfer, inter-bank transfer Bank.
– Mobile Banking: is a service that allows customers to use mobile phones to query personal account information, balance, information about banking services, pay service bills, purchase goods.
– Internet Banking: Similar to Home Banking service, this is a means to help customers access and use banking services through the network equipment of the post office and the internet.
1.3.2.2 Card service
Card is a modern non-cash payment tool issued and sold by banks to customers for use in paying for goods and services, withdrawing cash at correspondent banks, and automatic teller machines. ATM. Consists of:
– Credit card: is a card that allows the cardholder to make card transactions within the granted credit limit as agreed with the card issuer.
– Debit card: is a card that allows the cardholder to make card transactions within the amount of the cardholder’s current deposit account opened at a payment service provider authorized to receive money. Unlimited sending.
1.4 The role of the development of banking services
Developing banking services contributes to providing diversified and high-quality banking services to meet the increasing demands of society.
The development of modern banking services such as e-banking services, cards… helps people to access modern technology products, raise awareness level to keep pace with developed countries in the world. . At the same time, modern banking services do not require customers to go to the bank to make transactions, thus saving customers time and costs in banking transactions, as well as being safer by not transporting cash. in payment. Moreover, the State also saves the cost of printing, transporting and storing cash.
Developing banking services with many utilities will stimulate the needs of customers to use banking services, contribute to profit for the bank, stimulate competition among banks in the system so that can provide the best and most convenient services to consumers, thereby promoting the development of a whole banking system.
Developing banking and financial services creates competition in the economy, competition among borrowers and lenders. It is from this competition that banks can go deep into the production and business activities of companies and enterprises, through which they can check and monitor the activities of these units, contributing to make production and business more healthy and efficient.
Developing financial and banking services to help businesses reduce production and business costs, and at the same time, this development will increase the proportion of the service sector in the GDP of the economy, promoting economic development. .
Development of banking services requires the synchronous development of other conditions such as information technology systems, facilities, staff, etc. Therefore, the development of banking services also promotes development. of modern technology, investment in facilities, equipment and training of professional human resources.
1.5 Factors affecting the development of banking services.
1.5.1 Macro factors
1.5.1.1 Legal environment
The legal framework system is established by the State to regulate the basic operating principles of the financial services market. The basic requirements for the legal framework system are to be unified, stable, clear and transparent, to combine and apply common standards that have been recognized worldwide.
State policies have a great influence on the development trend. The new policy of consistency makes investors feel secure to invest and helps participants shape their strategies.
If the legal framework is not consistent, leading to differences in regulations for different types of banks, this will cause unfair competition for banks, overlap between banks. major. In addition, the promulgation of policies that do not follow international practices will contribute to limiting the development of banking services and forms of foreign banking, thereby slowing the development of the banking system. banks in particular and the economy in general.
1.5.1.2 Policies, management mechanisms, management capacity of the Central Bank
Today, the mission of most central banks in the world is to be responsible for formulating and administering the national monetary policy through tools and solutions to achieve the set policy objectives. , responsible for the smooth functioning of the payment system and the stability of the financial system, is the lender of last resort. Therefore, the first and most important operational objective of the Central Bank is the objective of monetary policy. The ultimate goal of monetary policy is to stabilize the local currency, setting the stage for boosting the economy and creating jobs. In addition to these macro objectives, depending on the period, the Central Bank may also have other objectives.
1.5.1.3 Integration into the international financial market.
The basic problem in the process of world economic integration in terms of financial services of countries around the world is to gradually open the door to foreign participation. This means that the State controls the participation of foreign financial service providers according to the development of the domestic market. Opening up financial services markets can increase competition and efficiency in the economy as a whole.
1.5.2 Micro factors
1.5.2.1 Banking service providers
In today’s trend, there are many financial institutions and consulting firms, such as commercial banks, savings and loan associations, insurance companies, and financial leasing companies. , financial consulting companies … these organizations provide a variety of financial services, leading to the fierce competition between banks and financial institutions. This will create a driving force for banks to always be aware of diversification, improve service quality, and ensure to fully and perfectly meet the increasing demands of financial services of customers. client.
1.5.2.2 Objects who need to use the service
– Government: the government participates in the financial services market as a person in need of financial services in case the government mobilizes financial resources for socio-economic development goals.
– Enterprises and socio-economic organizations: these are the most important customers of financial services in terms of both supply and demand for financial resources. In terms of integration, businesses have needs. The increasing demand for financial services creates a driving force for the development of financial services by commercial banks.
– Population: this is also an important force contributing to promoting the development of more diversified financial services by their increasing demand.
1.5.2.3 Price of the service
Price plays an important role for service providers. Because in addition to quality and utility, customers are also interested in prices and fees related to using the service. In fact, the services of banks are quite similar in terms of quality and utility, so there is fierce competition on price. However, the price of the service needs to be determined at an appropriate level according to the development of the social economy and the service supply market. If the price is too high, customers will have difficulty in accessing and using the service, whereas if the price is too low, the bank will have difficulties in doing business, which is likely to lead to losses and bankruptcy. Therefore, banks need to develop pricing policies suitable to each period and timely with market developments.
1.5.2.4 Other factors
Banking technology:
Modern technology facilitates banks to develop and diversify services according to the increasing demands of customers. At the same time, it helps the bank to perform a large volume of transactions quickly, safely and accurately.
Management qualifications and quality of human resources:
The human factor is considered an essential resource for each bank. The quality of banking services is high or low depending on the service ability of the bank staff. In order to meet the needs of customers quickly and accurately, the staff must be well-trained, master the process and operations, know how to master technology and professional service style.
