Solutions to promote the efficiency of consumer lending activities at Saigon Thuong Tin Commercial Joint Stock Bank - 12
Regarding capital mobilization: In the coming time, the Branch will maintain a reasonable capital mobilization policy, regulate the amount of mobilized capital in accordance with the needs of use, ensuring the best capital use efficiency. The improvement of fundraising products will be continued and promoted in the direction of flexibility with many additional utilities for customers.
Implement sales programs with package products in order to effectively exploit existing customers and develop potential customers.
Regarding credit activities: Continue to consolidate and improve credit quality, improve professional qualifications and sense of responsibility of credit officers, ensure safe and effective lending. Strengthen loans secured by assets, expand lending objects, promote credit card and improve the quality of loans to small and medium enterprises in order to diversify customers and spread risks. Improve the quality of credit rating and appraisal before, during and after giving and reduce the overdue debt ratio to less than 1.5%. Focus on lending medium and long-term capital, simultaneously deploying mobilization products combined with focused and differentiated promotions to attract customers. Promote small lending, focus on encouraging fields, agriculture and rural areas,export goods… to minimize risks and at the same time in line with national monetary policy.
About service activities: Promote service activities, diversify products and services, create a breakthrough in service activities such as increasing the number of customers registering to use the service by developing technology. technology and corresponding software; thereby, ensuring service quality, reducing transaction costs, and improving profits for the bank. Develop international payment activities, pay remittances, seek and increase the number of export customers. Promoting the efficiency of the information technology system: Improving the application of automation in products and services, business processes and reporting systems.
126.96.36.199. Development orientation of consumer lending activities
In 2013, when domestic commercial banks competed to attract individual customers and almost similar products, the competition was only based on interest rates, reputation and service attitude of employees. Moreover, when joining the WTO, the banking market opened, domestic commercial banks also had to deal with competition from foreign banks, which had much better management and technology experience.
In that situation, Sacombank - Hanoi has set a development orientation to become the leading retail bank in Hanoi area. The promotion of the efficiency of credit card activities is always concerned and prioritized by the branch. To achieve that goal, the Branch has set out a number of specific orientations for credit card activities in 2013 as follows:
- Developing retail banking services associated with strengthening the capacity of providing banking services on the basis of comprehensive and synchronous renovation of the banking system, and at the same time meeting the requirements of international integration and opening up. domestic financial market.
- In the coming time, the branch should pay more attention to the development of traditional consumer loans combined with utility services because this type of loan accounts for a large proportion of customers and brings benefits. quite large profits in the credit activities of the bank.
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- The branch's target audience is increasingly expanding, that is, individuals with high, medium and low incomes, households, individual business households...
- Reduce interest rates or offer preferential interest rates corresponding to the loan limit registered by customers to suit the different financial needs of consumers.
- Provide many products and services with many choices for customers to achieve the goal of lower interest rates, offer insurance to borrowers, increase credit limit, deploy unsecured loans (no need for special assets).
- Simplify loan conditions and procedures, shorten the loan processing time so that customers can easily borrow money.
- Ensuring the safety of loans by DPRR adequately for loans, structuring overdue debts to reduce the rate of overdue debts and bad debts.
- In addition, the branch also orients to develop consumer loans to young customers because this is a potential customer group, accounting for a large proportion of the total population of Vietnam. Young customers are having a lot of demand for loans for shopping and consumption by monthly installments and do not need special assets.
With the right development orientation and clear plan, Sacombank - Hanoi will continue to achieve effective business results in 2013 and maintain its position in the whole Saigon Commercial Joint Stock Bank system. Dear trust.
3.2. Solutions to boost the efficiency of consumer lending activities of Saigon Thuong Tin Commercial Joint Stock Bank - Hanoi Branch
Through the analysis of the data in Chapter 2, it can be seen that the growth in business activities of Hanoi Branch is quite good. Besides the achievements that have been achieved, there are still limitations that need to be addressed. In order to maximize the limitations mentioned above, in this content, some solutions will be proposed to promote the efficiency of credit card operations at Sacombank - Hanoi.
3.2.1. Diversify service types and improve loan products
Currently, consumer loans of Sacombank - Hanoi only meet the needs of: Buying a house, building, buying a car, borrowing to study abroad. In the coming time, the bank may expand new services such as travel loans, medical examination and treatment loans, loans to buy motorbikes, laptops, etc. The bank needs to research and deploy products new, unique and specialized services applied in Vietnamese conditions, thereby contributing to enhancing the branch's image, attracting more customers and increasing profits for the bank. Product diversification is an effective measure to limit risks for the Branch.
Branches must always aim to create products and services with quick application review time to meet the needs of customers who are in need of urgent loans, high loan limits and flexible loan periods. When there is a need to spend, customers can withdraw capital and add documents to prove the purpose of using the loan (purchase invoice) within 3-5 days after disbursement. Therefore, when lending to banks, customers should often ask customers to provide documents to prove the source of debt repayment. And explain to customers that the more complete and detailed the provision of this information, the more opportunities customers have to access loans from the bank.
In addition, banks need to promote unsecured lending in addition to traditional mortgage lending, which is applied to employees. Because this subject has a stable source of income, higher living needs and a higher sense of debt repayment.
In addition to developing new products, the Branch also needs to perfect old products such as home loans and car purchases in the direction of building more detailed, complete and easy-to-understand loan processes, The procedure also needs to be open, creating maximum conditions for customers to borrow money at the bank because customers are the ones who bring income to the bank.
When credit activities have been increased, the bank already has a large number of customers, so it should also diversify its products and services in order to expand its service delivery network to customers that the Bank does not currently have. branches, transaction offices, etc., in the form of cash loans in large quantities, transporting money trucks to customers' homes, both guaranteeing the loan amount and thereby also showing care. good customer. Provide products and services to each house and household so that customers can understand that this is the people's bank, serving the people.
3.2.2. Develop preferential policies for customers
A bank cannot attract customers without understanding customer needs. Customers are an invaluable resource in every bank's operations. Therefore, it is advisable to develop separate regulations for the bank's general customer policy - preferential customers and an example business strategy, applicable to customers with frequent transactions and customers with first-time transactions. .
Such policies must capture people's consumer psychology, thereby creating an attraction for customers to deposit money, for example: preferential policies for customers according to each service, in each service the preferential rate from From low to high, banks should classify preferential customers through the evaluation of customer relationships with the bank, ranking: special class, first class, second class, third class.
For each type of credit card product, it is necessary to have different special preferential policies in lending activities. The branch should make a customer evaluation file, a report for consideration of preferential customers and a meeting of the preferential customer review council, after having the results, notify the customer no later than 03 days from the date of issuance. result.
The preferential policies are detailed as follows:
+ Gifts for loyal customers.
+ Preferential loan interest rates: apply a reduction compared to normal lending rates according to preferential rating.
+ Preferential fixed assets for loans.
+ Preferential time in the process of business processing... For example: Customers can borrow unsecured loans with a maximum term of 24 months, and can borrow up to VND 500 million. The customer will also be offered a borrower insurance with an insured value equal to the loan balance at the time of the insured event.
Branches need to rely on Sacombank's automatic customer scoring system, and take that as a basis for rating (based on and information about personal identity, income source and intended loan product and other factors). is different). If the customer is a good customer, has a long-term credit relationship with the Branch, and has no bad debts at Sacombank and the credit institution, the Branch will reduce interest rates, grant a high limit and not have to re-evaluate documents for the first time. two when borrowing under the credit line. At the same time, in order for the customer to receive an accurate credit rating, the Branch should request the borrower to provide complete, honest and detailed information that will benefit the borrower and the Branch. With consumer loans that customers have stable income, good fixed assets, they can enjoy lower interest rates.
3.2.3. Completing the consumer lending process and closely monitoring the loan
In order to achieve the best effect in consumer lending, the Branch needs to pay attention to perfecting the credit process because the steps in the credit process directly affect the effectiveness of the credit card as well as whether the Branch meets with customers. risk to that loan, whether the loan will bring profit to the Branch or not.
Specializing in steps in the consumer lending process The branch needs specialization in consumer lending, which clearly defines the activities and duties of each individual and department from the time they approach the customer. customers, collect customer information, appraise... to disbursement, debt collection, loan monitoring; so that each of those jobs achieve maximum results and shorten the loan period, convenient in lending to customers.
Strengthening the inspection and control of appraisal before and after disbursement to customers When conducting appraisal before disbursement, the Branch needs to learn about its customers, carefully consider the source of debt repayment. and can contact other commercial banks in the same area for more information about customers. In order to minimize risks when conducting consumer loans, the Branch, in addition to tightening internal inspection and control before disbursing, also needs to closely monitor the situation of such loans after disbursement. Disbursement. The branch also needs to strengthen the direct comparison of regular borrowers to promptly detect and handle abnormal expressions of customers in order to minimize risks that may arise. Especially for loan applications where the subject is an individual, the main source of payment is salary,Branches need to focus on verifying that the payment source is stable and regularly monitoring and monitoring the monthly payment of principal and interest of customers.
In addition, the Branch should also take measures to bind the responsibility of the person confirming the borrower's income source in order to minimize the situation where a customer can borrow many different contracts or when the customer does not. still working at that unit, but the unit is not responsible for notifying the bank and does not hand over the responsibility to the unit where the client comes to work. 3.2.4. Promote consumer loans in installments on the basis of association with sales partners
The Branch actively seeks out major partners to sign cooperation contracts to jointly deploy CVTD products, then these companies will open payment accounts at the Branch. And so, the Branch has both attracted more customers and obtained abundant mobilized capital at a relatively lower cost compared to savings deposits in the population.
Currently, Sacombank - Hanoi has provided loans at Auto Showrooms in Hai Ba Trung District for on-the-spot financing for customers wishing to buy cars. However, the branch's sponsorship is still quite limited, mainly in the field of credit card installment payment, the branch needs to sign association contracts with retailers of cars, motorbikes, laptops, interior equipment, and equipment. cleaning equipment, construction materials, expensive household appliances... Branches can also link with private companies that study abroad, through seminars or consulting sessions of companies That company, the Branch can directly approach customers who need to borrow money to study abroad.
In addition, the association with real estate companies, investors of urban areas, housing projects, real estate trading floors to lend to customers wishing to buy houses and special assets. It is also possible to buy a house by itself, when the demand for housing in Hanoi is very large, so if this type of loan is well implemented, it will create conditions to promote credit card activities.
3.2.5. Cut costs
Currently, domestic commercial banks and foreign banks are competing fiercely in terms of customer market share, products as well as quality, but a very sensitive issue is the fact that banks reasonable fees to retain customers. At Sacombank - Hanoi, based on the fee schedule, the collection of fees is broken down and some fees are quite high compared to other commercial banks, which creates anxiety when customers want to make transactions. Translating with the bank. Therefore, the bank should cut down on small fees and implement preferential policies on fees for VIP customers and regular customers, thereby attracting more customers to the branch. .
3.2.6. Improve efficiency of marketing activities
Making people aware of the Branch and the benefits it brings to them is essential to promote the efficiency of lending activities. If the propaganda is done well, it will be effective in changing people's habit of saving for consumption and fear of borrowing. Thereby, it will increase the number of customers, contributing to promoting the development of consumer lending. To do so, the Branch needs to expand its banking marketing activities and need to do the following issues:
Retaining old customers and finding new ones When the Branch wants to promote CVTD development, the main problem is to have customers and attract customers. This requires specialized staff of the Branch to study the consumption habits of customers in need, thereby providing credit and facilitating loans for customers. Branches should have a deep concern for customers, need to keep regular and close contact, build loyal customers for the bank. Building loyal customers by always sincerely thanking customers and making customers happy when there is a need for transactions at the Branch.
For big and familiar customers, always keep good relationship through learning about customers' special days, congratulating, giving gifts to make a good impression on customers. For example, on the occasion of the 8/3 holiday, there are preferential policies for female customers who come to transact at the Bank such as giving away ballpoint pens, office supplies, cosmetics, etc. with the Bank's name, address, and phone number printed; On the occasion of Tet, it is possible to print a calendar with address, phone, and banking services to customers; Organizing customer conferences, organizing receptions and gifts, introducing new products and services at the Bank, affirming the Bank's policy of considering customers as the number one priority; …The above job will create a good impression for businesses that have a relationship with the Bank, these will be great advertisements for the Bank for customers who have never done business with the Bank,both keeping customers loyal to the Bank and finding new sources of customers. Advertisements from customers who have transacted with the Bank are many times more valuable than advertisements on television, television, etc. Improve the quality of customer care services through the attitude and service of the staff. The Banking Department is the epitome of the Bank, so the Bank's staff should be aware that they are the most active and effective propagandists for the Bank's operations to customers. Bank employees need to maintain a dedicated attitude, wholeheartedly for customers and polite and attentive service; through which the image of the bank in the eyes of customers will be increasingly enhanced, creating an impression in the hearts of customers. Therefore, the bank must have policies to train employees and guide staff regularly;closely monitor each employee so that there can be rewards for employees with positive attitudes and punishments for employees with bad attitudes; thereby motivating employees to strive for work.
Promote the image of the bank in the media and other means.
Banks should pay much attention to brand promotion through advertising banking activities on mass media such as books, television, radio. The Bank's leadership should also regularly participate in local community activities, this is the most effective means of enlisting new customers: attending cultural, social, economic, etc. Create your own brand for your local branch.
Send officials to go closely to each agency and unit to propagate and disseminate lending operations so that people understand the utility that this type of credit brings to them.
At the same time, it is necessary to win the enthusiastic support of the leaders so that the access to and gathering of people's needs as well as the smooth conduct of business activities.
In addition, completing Sacombank's website: www.sacombank.com.vn is increasingly rich and detailed, meeting the increasing information needs of customers not only at home and abroad.
3.2.7. Improve the capacity of bank staff along with the innovation of banking technology
Another equally important factor is to improve the quality of customer care services of the staff at Sacombank - Hanoi to always create a sense of satisfaction and peace of mind for customers when their needs are not satisfied. their finances are met. Improving service quality along with modernizing banking technology is considered an important factor in the development strategy of Sacombank - Hanoi.
Computerization of business processes and bank management, training for officers and bankers capable of mastering that technology is an urgent requirement. On the other hand, in the current integration trend, the requirement to place on the shoulders of staff is very large, there will certainly be many foreign banks entering the Vietnamese market, creating a fiercely competitive environment. The only thing that can be won in this competition is the quality of banking services. In addition, the proportion of foreign customers then will be higher than now, to meet the needs of these objects requires very high service quality. To do this, the most important and fundamental element of the Bank is human resources. Therefore, the branch's credit officer must have the following qualities and capabilities to perform the job:
- Ability to solve professional and professional problems. To do so, they must have professional knowledge of Banking, and be trained in skills to handle information related to their work.
- Ability to predict economic issues in terms of development as well as prospects of credit activities. This is the vision of each individual, but it affects the operation of the bank. From experience that they get accurate predictions, it is the creativity of credit officers.
- Prestigious in social relations. This demonstrates ethical qualities and communication skills, which are very important in expanding and retaining the Bank's traditional customers.
- Ability to learn, self-study, able to work independently. Recognizing this, in recent years the bank has continuously improved the quantity and quality of human resources.
Every year, the bank organizes a public contest to recruit employees with many rounds of competitions on professional knowledge, foreign language proficiency, communication ability, etc., and has selected really competent and responsible staff. and enthusiastic about work. The Bank regularly organizes training and re-training courses for staff through seminars, domestic training courses, short-term and long-term courses abroad.
In order to attract good staff and improve work efficiency, the bank also needs to have certain remuneration regimes for them such as salary, bonus, training regime... this will create motivation. working strongly with staff, creating a beautiful image of the bank in the hearts of customers. The Bank should regularly organize and participate in cultural and sports exchanges or competitions within the banking industry or in the area of operation to create conditions for employees to have the opportunity to better understand each other, express the Bank's interest in the emotional life of its employees. Thereby, creating unity within the Bank, forming a unified block, together bringing the Bank to achieve the common goal.
3.3.1. For Saigon Thuong Tin Commercial Joint Stock Bank - Hanoi Branch
Based on the actual survey at Sacombank - Hanoi, being aware of the achievements as well as the difficulties at the branch in lending activities, besides the solutions mentioned above, I would like to boldly Some of the following are suggested:
Firstly, it is necessary to increase the quantity and quality of staff to best meet the needs of customers. Branches should regularly create conditions for employees to have more conditions to participate in professional courses, or graduate courses so that they have more knowledge to improve work efficiency.
Secondly, the branch's management and leaders must regularly disseminate documents related to lending activities, loan guarantees, documents of the State Bank, Sacombank, regularly hold meetings to understand promptly catch up with difficulties and obstacles in lending activities, secure loans so that timely adjustments can be made.
Thirdly, regarding collateral, Branches need to: Fully notarize mortgage mortgage contracts. Care should be taken in the valuation of collateral, there must be an analysis of the market for that property and its trends in the future. The collateral should be revalued regularly throughout the loan life.
Fourth, the Branch needs to learn and absorb the experiences of other branches in the Sacombank system, and at the same time consult the experiences of other commercial banks in the country and in the world, to propose reasonable policies, suitable for your banking activities.
Fifth, Branches need to speed up the work of attracting and finding customers, taking measures to attract many different customer groups.
The development of mechanisms and policies in marketing and incentives for customers is both systematic and highly competitive, while creating initiative for member units in the effective use of mechanisms. there.
Sixth, Branches need to simplify lending procedures, in order to shorten time and costs for customers. In addition, it is also necessary to offer a more reasonable fee to improve the branch's competitiveness against rival banks.
SUMMARY OF CHAPTER 3
The entire chapter 3 has outlined the business orientation as well as the specific goals of Sacombank in general and Sacombank - Hanoi in particular in the coming years. From there, chapter 3 points out the need to promote the efficiency of consumer lending activities at the Bank, the basis for proposing solutions and specific solutions such as: diversifying products, offering preferential policies for customers, improving the capacity of bank staff along with the innovation of banking technology, expansion of marketing activities, etc. At the same time, chapter 3 also raised some recommendations for the banks. State management agencies, the State Bank and Sacombank - Hanoi with the desire to contribute to promoting the efficiency of consumer lending activities at Sacombank - Hanoi.
Through the process of studying at school and studying at Saigon Thuong Tin Commercial Joint Stock Bank - Hanoi Branch, I realized that along with studying, researching and theoretical, the actual investigation also This is a very important step that cannot be ignored. That is the time when students apply and test the knowledge they have learned in school into practice. On the other hand, it also creates conditions for students to understand better and more deeply the knowledge they already have, and to add more knowledge that can only be obtained through practical work.
Consumer lending is an inevitable trend in the Bank's operations when the economy is developing in all aspects. This will be a very potential market, bringing a lot of profits for banks. Contributing to the development of Vietnam's banking system, as well as being well aware of the importance of consumer lending, Saigon Thuong Tin Commercial Joint Stock Bank - Hanoi Branch has taken measures and strategies specific strategies to enhance the effectiveness of this activity. However, in the context of fierce competition between commercial banks in terms of products and service quality, besides the positive results, Hanoi Branch still faces many difficulties. Therefore, in my thesis, I boldly present some ideas with the hope that the Branch can refer to it in order to further improve the efficiency of its consumer lending activities.
Coming to the branch to practice, with the enthusiastic help and guidance of the brothers and sisters in the accounting department, especially the dedicated help and guidance of the teacher - Th.S Le Thi Ha Thu, I completed my work. into your thesis. Due to my limited qualifications and knowledge, I cannot avoid certain errors and misunderstandings in this thesis. I look forward to receiving more help and guidance from teachers, brothers and sisters and friends so that I can make more progress.
Once again, I would like to express my deep gratitude to my teacher - Ms. Le Thi Ha Thu and all the aunts and uncles and brothers and sisters at Saigon Thuong Tin Commercial Joint Stock Bank - Hanoi Branch for helping me complete the process. into this thesis.
Thank you sincerely!
Hanoi, March 24, 2014
Student Nguyen Thi Lan Anh
LIST OF REFERENCES
1. Assoc. Prof. Dr. Mai Van You (2009), Textbook of Commercial Banking, Financial Publishing House.
2. Dr. Nguyen Minh Kieu (2009), Textbook of Commercial Banking, Statistical Publishing House.
3. Tran Thi Tuyet Nhung (2013), Thang Long University, Thesis "Solutions to boost the efficiency of lending activities for individual customers at Military Commercial Joint Stock Bank".
4. State Bank (2005), Decision No. 439/2005/QD-NHNN promulgating Regulations on classification of debts, setting up and use of provisions to handle credit risks in banking activities of credit institutions.
5. State Bank (2011), Circular No. 20/2011/TT-NHNN stipulating the purchase and sale of foreign currency in cash by individuals with credit institutions; individuals and economic organizations.
6. State Bank (2011), Circular No. 14/2011/TT-NHNN stipulating the maximum deposit interest rate in USD of organizations and individuals at credit institutions.
7. Government of the Socialist Republic of Vietnam (1999), Decree 178/1999/ND-CP on loan guarantees of credit institutions.
8. Saigon Thuong Tin Commercial Joint Stock Bank - Hanoi Branch (2010,2011,2012), Report on the results of consumer lending activities.
9. Saigon Thuong Tin Commercial Joint Stock Bank - Hanoi Branch (2010,2011,2012), Financial Report.
10. Saigon Thuong Tin Commercial Joint Stock Bank, Prospectus.
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