Building business strategy for Prosperity Joint Stock Commercial Bank - 6

Banking is a business of highly intangible products and services, so service quality is the most important thing for a customer to choose and use products.

In the current situation that the banking market is still highly competitive, with many strong competitors, it is not possible to compete on price and directly confront these banks. And if so, these steps will be very expensive while the financial potential of VPBank Ha Tinh branch is still not strong.

Over time, price competition in the banking industry will no longer be sustainable because of many legal barriers and business performance.

Thus, the differentiation strategy in terms of product and service quality is not only suitable with the current competitive position of VPBank Ha Tinh Branch, helping VPBank Ha Tinh Branch bring more value to customers, but also creating a sustainable, long-term competitive advantage for VPBank Ha Tinh Branch.

Segments that VPBank Ha Tinh Branch should focus on:

Based on VPBank’s strengths in retail (rather than serving large enterprises) for the following reasons: Retail banking is currently the focus of major commercial banks in Vietnam, thanks to safety, low risk, stable and synchronous revenue in the long term. Individual transactions have lower risk, better credit quality by spreading risk across a large customer base.

Thanks to synchronous investment in distribution channels, technology and human resources, VPBank has been gradually improving products with many utilities for individual customers, increasing sales and managing risks well. for retail banking services. Plus the assessment of the upcoming market situation for the market segments that VPBank should choose to implement the strategy:

Small and medium business segment : Although this is the customer that almost all commercial banks are targeting and serving.

However, the potential for this market is still huge. On the other hand, this is also a group of customers with whom VPBank Ha Tinh Branch has had a good relationship and service experience in recent years.

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Segment individual customers with middle age, successful career, high income. This group of customers is quite potential, especially overseas Vietnamese, successful young entrepreneurs from abroad to study and live are also increasing, contributing to the attractiveness of this segment.

Segment of individual customers with young age and stable income:

Every year, the number of students from universities and colleges graduating, having jobs and salaries ranging from 3 to 5 million is quite large. VPBank can serve this segment by providing payment cards, credit cards (due to high consumer demand), and then savings products for future needs such as saving to buy a house. , weddings, etc. Retired individual customers: The characteristics of this customer group are high savings needs, stable monthly deposits (retirement pensions, etc.), rarely arising problems. unusual needs except in cases of illness or travel. Products and services for this customer segment can be retirement savings, bankassurane products such as life insurance and health insurance.

The segment of customers who are workers at companies and businesses in this segment VPBank Ha Tinh branch will mainly provide products such as salary payment through accounts, savings, and sending money to relatives.

2.3 Assess the feasibility of the strategy

2.3.1 Financial feasibility assessment

Implementing a differentiation strategy is not inexpensive, so the first thing VPBank should pay attention to is improving its financial potential in the market. On the other hand, as analyzed above, the financial potential of VPBank Ha Tinh Branch is still quite weak compared to its competitors. Therefore, in the coming time, raising capital in order to increase capital mobilization, grow outstanding loans and increase total assets is a must.

2.3.2 Feasibility assessment of personnel

Human resources are a central factor, decisive, affecting the quality of a product or service. From the operation stage to the customer contact stage, if the staff’s service is not performed well, it will adversely affect the reputation, brand and image of customers about the bank. The qualification of a bank depends on two factors: recruitment and training.

For the recruitment stage

Building long-term recruitment strategy on the basis of business strategy .

On the basis of the proposed business strategy, the human resources department needs to forecast the future demand for human resources (quantity, qualifications) in order to have reasonable recruitment programs.

Improve brand promotion for students majoring in economics – finance – banking at universities to attract new graduates with fairly good qualifications to take entrance exams to banks.

In particular, it is necessary to develop a recruitment policy that sets a way for experienced candidates from other banks for the position to be recruited.

For the training stage

Current staff: With 4% of staff having master’s degrees, 87% of staff having university degrees, 9% of staff having college and intermediate degrees, truly resourceful This project of VPBank Ha Tinh branch has not yet been able to meet the requirements that the Bank’s upcoming development requires. Therefore, constantly improving the level of human resources as well as selecting from the input stage of VPBank Ha Tinh Branch needs more attention. Paying attention to the recruitment stage right from the time students have not graduated from school as mentioned above is also a solution. In addition, encouraging employees to improve their professional qualifications as well as professional skills to improve working efficiency better. In addition, the development of employee evaluation criteria in a clear and transparent manner,Fairness will motivate employees to work more effectively.

Leadership team: Most of the leadership team of VPBank Ha Tinh Branch in recent years are people 1

Leadership team: Most of the leadership team of VPBank Ha Tinh Branch in recent years are people who have been with the bank for a long time, since the bank was established until now. That, on the one hand, helps the bank’s orientations to be adjusted in accordance with the mission and tasks of VPBank Ha Tinh Branch, but on the other hand, this can also cause stagnation and maintenance. in the way of banking. Therefore, it is necessary to recruit more qualified and experienced managers and leaders from outside.

2.3.3 Other factors

– Technology

Technology is considered as one of VPBank’s strengths.

The good application of technology to put into products, upgrade the processing system, limit administrative procedures, reduce to the maximum time the transaction execution time are necessary things for VPBank to be able to bring the best service to customers. more value as well as minimizing costs in the process of using the product. Things VP Bank needs to do:

Build a modern technology strategy on the basis of business strategy. Continue to diversify products, improve utilities for customers on the basis of existing technology.

Research the latest technology applications being used at major banks in the world such as HSBC or Bank of America… to find the most feasible technology solutions that can be recommended to VPBank Headquarters To apply to the whole VPBank system, it is both suitable for the organization and must ensure the effectiveness of the capital spent.

Strengthen cooperation with other banks in the field of technology.

This will help save costs and resources of each bank.

Upgrading the current technology system.

– Marketing

For marketing activities, although certain achievements have been achieved in promoting VPBank’s brand to customers, compared to other banks such as Sacombank and ACB, it is clear that VPBank’s PR work has not been successful. very well off. In addition to choosing the right market segment to carry out the strategy as analyzed above, the strengthening of enforcement measures to improve marketing activities further. Applying a new model of service marketing, the solutions offered for VPBank to make a difference.

– Management capacity

To further improve governance, VPBank needs to do the following:

Establishing a Strategy Management Department: it can be seen that VPBank has not yet paid attention to strategy development, strategies are still at a general level, not specific and feasible. It is necessary to establish a department dedicated to information collection, development, implementation, testing and evaluation of the implementation of the strategy.

In addition to preparing potential candidates to manage the bank’s operations in accordance with the above-mentioned international standards, in order to improve governance, VPBank needs to invest more in appropriate management tools such as investing in an information management system throughout the bank’s daily operations, investing in an internal control system to provide necessary and timely information to managers. Management… Sending the management team to study abroad, learn about management practices and modern products that VPBank has not yet provided… A clear realization is to improve the quality of customer service Aviation is not only the task of the sales department, the support department, but it depends on the determination and attitude of all employees to treat customers. Organizational culture is the solution to this problem.A culture is good when it both preserves core values ​​and promotes progress. To build such a culture, VPBank needs to:

Building big and ambitious goals and commitment from the Board of Directors to employees is determined to achieve it. This will motivate and motivate employees in the bank to put more effort and cohesion in their daily activities to achieve common goals.

Build a highly formal corporate culture.

VPBank should have a clear reward and punishment mechanism, encourage employees to work with special treatment regimes for talented people, or should only retain the right people and eliminate those who do not match the company’s ideology. the bank through quarterly and annual employee rating reviews.

At the same time, for employees to instill the bank’s ideas, do things like hang slogans on the wall in the employee’s office or on the employee’s computer. Paying more attention to uniforms, decorating the workplace, composing songs about VPBank, building a number of images that clearly state the core values ​​that VPBank needs to preserve, its vision and mission. VPBank. Through study sessions, mass activities, communication activities, exchanges between departments and branches across the country in order to create a friendly relationship between employees and the Board of Directors.

Promote the leaders from within the bank for the staff to look at and take that as a motivation, an example to strive for their own career. Besides hiring managers from outside, the promotion of employees who have been with VPBank for a long time is a very interesting policy. Not only are they knowledgeable and imbued with the values ​​that VPBank is pursuing, these leaders will also be a target for current employees to strive for, motivating them to work more effectively.


The period 2013-2020 is a pivotal period for VPBank’s existence and development in the following years. From the analysis and assessment of internal and external environmental factors, Chapter 2 has developed a number of business strategies for VPBank Ha Tinh Branch until 2020. In order to successfully implement this strategy, VPBank Branch Ha Tinh branch desperately needs synchronous solutions from within the bank, Ha Tinh branch in addition to the support of VPBank Head Office, the State Bank or the government’s macroeconomic innovations.

Chapter 3 will delve into these important issues.


3.1 Solutions to implement the strategy

3.1.1 Solutions related to governance and organizational structure

VPBank Ha Tinh system divides the scale of level I branches with 4 departments and 4 transaction offices. With the forward combination strategy and market development strategy, VPBank Ha Tinh needs to gradually calculate the strengthening of human resource management, expanding the organizational structure and preparing people for the network expansion. network of activities to districts and towns in the province. In the immediate future, it is necessary to shape the model of transaction offices in districts and towns, each transaction office has 1 person in charge of related specialized operations. Therefore, VPBank Ha Tinh Branch needs to plan to train people from now on, recruit more people every year to use experienced staff to gradually guide new employees and then use this force for building a system of transaction offices in districts and towns.

VPBank Ha Tinh Branch has focused on perfecting and improving the quality of the recruitment process in order to screen the best and most suitable candidates for positions ranging from leadership and management to specialist positions. employees throughout the system, both to meet the business strategy and to find, attract and retain talent”.

One thing VPBank Ha Tinh Branch should consider is prioritizing hiring employees whose hometown is in the area who want to open a branch. This is convenient for understanding the market, having an existing relationship from family and friends in the area, later when developing the transaction office, on the other hand, it will create conditions for employees to stick together. , feel secure to work with VPBank’s Ha Tinh branch because of working close to home.

3.1.2 Solutions related to financial capacity

Good implementation of business strategy also means that businesses must operate effectively. In the field of finance and banking, in order to improve operational efficiency, banking organizations need to pay special attention to the group of solutions. financial law. For VPBank Ha Tinh Branch, in the coming time, it is necessary to pay attention to the following issues:

– Improve the ability to raise capital in the area compared to competitors.

– Restructuring mobilized capital in the direction of increasing payment deposits (low interest rates) to reduce capital mobilization costs.

– Lending to small and scattered customers with low interest rates and medium and long term loans with high interest rates to improve the margin between input and output.

– Balance between capital sources and capital use to avoid having to receive capital harmonization from Head Office with higher cost of capital.

– Develop an overall debt collection strategy, including analyzing the current situation of debt collection at the Bank, designing an overall debt collection model, developing debt collection regulations, and recruiting personnel for this model.

– Establishing the Risk Management Division and strengthening the risk management framework to develop a risk management system, independent, centralized, specialized, according to international standards and aligned with the business strategy of the bank.

– Reduce unnecessary expenses. For example: electricity, water, gas and car bills for travel, other administrative and shopping expenses that are not really necessary, etc….

– Improve the working efficiency of employees, create optimal conditions for employees to work and work environment to enhance labor productivity.

3.1.3 Technology solutions

VPBank uses a modern and relatively convenient core banking software technology system, bringing many benefits such as speed and accuracy to banks and customers through online management and connection of the entire system. system (customers can deposit money here but withdraw elsewhere in the same VPBank system). However, the Bank needs to ensure security because e-banking services are built on telecommunications networks, so there are many risks. Therefore, the system needs to ensure the high security of customer data transmission, focusing on implementing more thorough network security solutions such as the machine room must have a camera system to monitor, when the computer staff goes out. When leaving the machine room, the door must be locked to avoid possible damage to the bank and customers.

Currently, the transmission system is not good, leading to many situations when the system operates slowly. The transmission line system must be modernized to ensure smooth and fast operation in order to better serve customers.

It is advisable to replace some old, slow and often malfunctioning computer systems with a new system to solve the situation of customers having to wait due to mechanical problems.

It is recommended to replace some printers at departments and copiers, because after a period of operation these machines have expired, some machines are damaged with some parts, making repair costs go up. while the machines still frequently malfunction, disrupting the working process of employees.

An Information Technology Strategy for the 2013-2020 period should be developed with the support of global consulting firm PricewaterhouseCoopers (PwC).

This is one of the important steps of VPBank as well as VPBank Ha Tinh to build a strong and reliable information technology platform to serve the Bank’s ambitious growth strategy.

3.1.4 Solutions on Marketing Product solutions

Currently, VPbank’s products are quite diversified. However, if offering individual products, the ability to sell many products and services to one customer will be difficult.

Therefore, VPBank Ha Tinh Branch should establish a Research, Product Development and Customer Marketing Team to review existing products to see which products are suitable for each customer, then build Build each product package suitable for each group of corporate or individual customers.

Building a product package for a customer plays an extremely important role in marketing new as well as retaining and exploiting the needs of existing customers.

VPBank Ha Tinh branch needs to proactively approach projects, industrial parks and small-scale industries, mobilize savings through project sources, and compensate for site clearance for households. Continue to maintain relationships with major customers, especially VIP customers.

Continue to renovate the investment structure, including the structure of short-term loans and medium and long-term loans, the investment structure by fields, sectors and economic sectors; businesses, households, production and business loans, life services. 

Date published: 01/11/2021
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