MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMY City. HO CHI MINH
LE QUANG PHU
CARDS SERVICE DEVELOPMENT
AT Asia Asia Commercial Joint Stock Bank
Major: Finance - Banking Code: 60340201
MASTER THESIS OF ECONOMY
SCIENTIFIC GUIDE: Dr. NGUYEN THANH PHONG
City. HO CHI MINH CITY – 2016
GUARANTEE
I hereby declare that the Master's thesis in economics "Development of card services at Asia Commercial Joint Stock Bank" is the result of my personal research. The results and data in this research paper are honest, I take full responsibility for the truthfulness of this research topic.
Dissertation author.
Le Quang Phu
TABLE OF CONTENTS
ADDENDUM COVER ASSISTANCE OF CONTENTS TABLE OF CONTENTS
LIST OF SIGNS, ABBREVIATIONS LIST OF TABLES, PICTURES
CHAPTER 1. INTRODUCTION TO RESEARCH TOPIC 1
1.1. Urgency of topic 1
1.2. Research objectives of the topic 3
1.2.1.Overall 3 objective
1.2.2 Specific goals 3
1.3. Research object and scope 3
1.3.1.Research object 3
1.3.2. Research Scope 3
1.4. Research Methods 3
1.4.1 Qualitative research 3
1.4.2. Quantitative Research 4
1.5. New contributions of topic 4
1.5.1. Theoretically 4
1.5.2. Practically 4
1.6. The layout of the thesis 5
CHAPTER 2. OVERVIEW OF CARD SERVICE DEVELOPMENT AT COMMERCIAL BANK 6
2.1. Overview of banking services 6
2.1.1. The concept of banking services 6
2.1.2. Features of banking service 7
2.1.3. Classification of banking services 7
2.1.3.1. Fundraising service 7
2.1.3.2. Credit service 7
2.1.3.3. Payment Service 8
2.1.3.4. Other services 8
2.2. 8 . card service overview
2.2.1. Bank Card 8
2.2.1.1. 8 . concept
2.2.1.2. Bank card classification 8
2.2.2. 9 . card service
2.2.2.1. 9 . concept
2.2.2.2. 10 . card service classification
2.2.3. Risks in card service business 12
2.2.3.1. Risks in the issuance stage 12
2.2.3.2. Risks in the payment stage 13
2.2.4. Benefits of using 13 . card service
2.2.4.1. For the 13 economy
2.2.4.2. For cardholders 14
2.2.4.3. For dealers that accept 14 . cards
2.2.4.4. For banks 14
2.3. Developing card services at commercial banks 15
2.3.1. 15 . concept
2.3.2. Factors affecting the development of 16 . card services
2.3.2.1. Group of factors belonging to the economic environment 16
2.3.2.2. Group of elements belonging to the bank 17
2.3.3. Criteria for evaluating card service development 19
2.3.3.1. Quantitative indicators 19
2.3.3.2. Qualitative criteria 21
2.4. Experience in developing card services of banks and lessons for Asia Commercial Joint Stock Bank 22
2.4.1. Experience in developing card services of commercial banks 22
2.4.1.1. Joint Stock Commercial Bank for Foreign Trade of Vietnam 22
2.4.1.2. Bank for Agriculture and Rural Development of Vietnam 23
2.4.2. Some lessons learned for Asia Commercial Joint Stock Bank ... 24
2.5. Review of research related to card service development 25
2.5.1. Domestic studies 25
2.5.2. Foreign studies 28
Conclusion Chapter 2 29
CHAPTER 3. SITUATION OF DEVELOPMENT OF CARD SERVICES AT BANK
ASIAN TRADE STOCK GOODS 30
3.1. Overview of Asia Commercial Joint Stock Bank 30
3.1.1. Overview of the history of formation 30
3.1.2. Overview of business situation and results 31
3.2. Current status of card service development at Asia Commercial Joint Stock Bank 33
3.2.1. Legal framework for card business 33
3.2.2. Card issuance activities at Asia Commercial Joint Stock Bank ... 34
3.2.3. Card payment activities at Asia Commercial Joint Stock Bank 35
3.2.4. Card products and services at Asia Commercial Joint Stock Bank 37
3.2.4.1. 38 . debit card
3.2.4.2. 38 . prepaid card
3.2.4.3. Credit card 39
3.2.5. Services included with the product card 39
3.2.6. Business results at Asia Commercial Joint Stock Bank 40
3.2.6. Evaluation of card service development at Asia Commercial Joint Stock Bank 41
Conclusion of chapter 3 50
CHAPTER 4. RESEARCH OF FACTORS A
CHAU 51
4.1 Research model overview 51
4.1.1. Theoretical basis of research model 51
4.1.2 Proposed research model 51
4.2 Research methods 53
4.2.1. Preliminary study 53
4.2.2. Official study 54
4.3 Research results 56
4.3.1. Information about the study sample 56
4.3.2. Reliability analysis of the 58 . scale
4.3.3.Exploratory Factor Analysis (EFA) 59
4.3.4. Correlation analysis results between independent variables and dependent variables (With two-tailed test with 95% confidence) 63
4.3.5. 64 . linear regression analysis results
4.3.6 Discussion of research results 66
Conclusion Chapter 4 68
CHAPTER 5. SOLUTIONS FOR DEVELOPING CARDS SERVICES AT AURAL CORPORATE COMMERCIAL BANK 69
5.1. Business development orientation at Asia Commercial Joint Stock Bank until 2020 69
5.1.1. Orientation of vision and mission of Asia Commercial Joint Stock Bank to 2020 69
5.1.2. Ambitions and development goals of Asia Commercial Joint Stock Bank to 2020 69
5.1.3. Development strategy of Asia Commercial Joint Stock Bank 71
5.2. Card service development solution at joint stock commercial bank
Asia 73
5.2.1. Brand solution 73
5.2.2. Technology infrastructure solutions 75
5.2.3. ATM/POS network solution 76
5.2.4. Utility solution 77
5.2.5. Customer psychology solutions. 78
5.2.6. Solution on card development strategy 78
5.2.7. Human resource solutions 79
5.2.8. Solutions for risk management activities 80
5.3. Limitations and directions for further research 80
Conclusion Chapter 5 81
CONCLUSION 82
REFERENCES APPENDIX
LIST OF SIGNS, ARRIVALS
ACB | : | Asia Commercial Joint Stock Bank |
Agribank | : | Bank for Agriculture and Rural Development of Vietnam |
ATM | : | Automated Teller Machine (automatic trading machine) |
EMV standard | : | Smart payment card standard jointly developed by 3 largest card alliances in the world (Europay, Master Card and Visa) |
VCNT | : | Department for card accept |
DVNH | : | Banking services |
Eximbank | : | Joint Stock Commercial Bank for Import and Export of Vietnam |
KMO . coefficient | : | Kaiser-Meyer-Olkin |
EFA . test | : | Exploratory Factor Analysis |
EDC . Machine | : | Electronic devices used to authorize and process card transactions online at card merchants |
POS | : | Point of Sale (Point of Sale) accepting machine |
SMALL | : | Issuing bank |
NH | : | Commercial Bank |
Joint Stock Commercial Bank | : | Joint-stock commercial bank |
NHTT | : | Card payment bank |
THE BATTERY | : | Personal Identification Number (Personal Identification Number) |
Decision/NHNN | : | Regulation/state bank |
Sacombank | : | Saigon Thuong Tin Commercial Joint Stock Bank |
SPDV | : | Products and services |
ICP | : | Card issuer |
TTTT | : | Card payment organization |
Techcombank | : | Vietnam Technological and Commercial Joint Stock Bank |
Ho Chi Minh City | : | Ho Chi Minh City |
Vietcombank | : | Joint Stock Commercial Bank for Foreign Trade of Vietnam |
Vietinbank | : | Joint Stock Commercial Bank for Industry and Trade of Vietnam |
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Developing card services at Asia Commercial Joint Stock Bank - 2 -
Developing card services at Asia Commercial Joint Stock Bank - 3 -
Developing card services at Asia Commercial Joint Stock Bank - 4
LIST OF TABLES, PICTURES
1. List of tables
Table 3.1 Summary of ACB's business performance from 2010 to 2015 32
Table 3.2 Statistics of card business results at ACB in 2010 - 2015 40
Table 3.3 Development indicators of card services of ACB 42
Table 3.4 Target of card usage and card payment revenue 45
Table 3.5 Fraud statistics of cards issued by ACB from 2010 - 2015 47
Table 4.1 Number of survey questionnaires sent and received 56
Table 4.2 Statistics of study sample 56
Table 4.3 Card types of ACB's card types mainly used ... 58 Table 4.4. Cronbach's alpha factors affecting card service development ... 58 Table 4.5 KMO coefficient and Barlett test 60
Table 4.6 Total Variance Explained 60
Table 4.7 Result of 61 . factor rotation matrix
Table 4.8 Total Variance Explained 62
Table 4.9 Correlation Matrix Table 63
Table 4.10 Model Summary b 64
Table 4.11 Coefficients a 64
Table 4.12 Test of the fit of the 65 . regression model
Table 4.13 Results of hypothesis testing of research model 66
2. List of drawings
Figure 2.1 10 . Card Issuance Process
Figure 2.2 Card payment process 11
Figure 2.3 Factors affecting the development of payment card services at Joint Stock Commercial Bank for Industry and Trade of Vietnam, Luu Xa branch
- Thai Nguyen 25
Figure 2.4 Factors affecting the development of card services in
Vietnam Bank for Industry and Trade, Hue branch 27
Figure 3.1 Card issuance process at ACB 35
Figure 3.2 Card payment process at ACB 36
Figure 4.1 Proposed Research Model 52
CHAPTER 1
INTRODUCTION OF RESEARCH
In this chapter, the author wants to introduce the research in general; next is to determine the objectives, scope and research methods of the thesis; Finally, state the contributions that the thesis brings and at the same time generalize the structure of the thesis.
1.1 Urgency of the topic.
Non-cash transactions are becoming a trend, having a positive effect in the context that Vietnam is stepping up anti-money laundering . Therefore, the policy of non-cash payment has been paid special attention by the Government, included in the detailed project, directed the relevant units to actively implement, in which the key force is the system of financial services. credit institutions under the management of the governing body, the State Bank (SBV). This is a potential market that has not yet been noticed by banks in difficult economic times.
In addition, the risks from traditional services due to the impact of the 2008 economic crisis have provided a more comprehensive view of Vietnam's banking system. The project "Restructuring the system of credit institutions for the period 2011 - 2015" was approved by the Government and promulgated under Decision No. 254/QD-TTg dated March 1, 2012 to encourage and accelerate the transformation business models of commercial banks in the direction of reducing dependence on credit activities and increasing income from modern, non-credit service activities.
Today, cards have really become a popular means of non-cash payment in the world. Card service of banks is an effective non-cash payment tool and minimizes risks. It is also because of that development that now forming famous card brands around the world. Many large international banks compete strongly in card issuance and payment, providing a significant source of income and increasing income from card services in the total income of banks. According to the State Bank of Vietnam (SBV), by the end of 2015, Vietnam had 07 commercial banks with more than 50% of shares held by the State, 02 policy banks, 28 joint-stock commercial banks, and more than 50 representative offices. representatives of foreign banks
foreign banks, 50 foreign bank branches, 05 banks with 100% foreign capital including Standard Chartered Bank, HSBC, Shinhan Bank, Hong Leong, ANZ and 03 joint venture banks. As of 2015, there were 50 card issuers nationwide with over 84 million cards issued, including nearly 77 million debit cards, more than 3.5 million credit cards and 3.5 million prepaid cards. . Currently, with the development of payment cards in general, the credit card growth rate reaches a positive level around the 25-40% mark.
From a banking perspective, the card is a potential channel with many favorable factors, backed by government policies, and at the same time, the awareness of people and businesses is also enhanced and easily recognized. advantages of smart consumption trends. The bank card market in Vietnam is developing rapidly. With a young population structure of more than 90 million people, Vietnam is considered a potential market for the development of this modern service.
As one of the largest joint stock commercial banks in Vietnam, Asia Commercial Joint Stock Bank (ACB) is aware of the importance of card services in business activities towards becoming a modern bank. Therefore, the card service was introduced quite early when the market was still in its infancy (1996). Although there have been many stages when ACB adjusted its strategy to develop services provided to customers due to brand-affecting events, card services have always been of interest and development orientation. ACB continuously promotes investment, improves card services with a rich card portfolio, diverse features to meet the maximum needs of customers. However, in the context of increasingly fierce competition with the strong development of domestic banks and the penetration of international banks with many advantages in technology and experience, ACB needs to have a solution to maintain and develop its card service. This is an urgent and necessary need in the current period, in line with the general development strategy. Realizing that importance and wishing to make practical contributions to the working unit, the author decided to carry out the thesis. “Development of card services at Asia Commercial Joint Stock Bank”.
1.2 Research objectives of the topic
1.2.1 General objective
Research the influencing factors and propose solutions to develop card services at Asia Commercial Joint Stock Bank (ACB)
1.2.2 Specific goals
To achieve the overall research goal of the topic, the author will implement the following specific objectives:
- Systematize the theoretical foundation for analyzing topics including cards, card services and card service development;
- Analyze and evaluate the current situation of card service development of ACB in the period 2010-2015;
- Researching the factors affecting the development of card services at ACB;
- Proposing solutions to develop card services at ACB.
1.3 Scope, research object
1.3.1 Research object
The object of research in the thesis is the development of card services at ACB.
1.3.2 Research scope
- Research space
To analyze the factors affecting the development of card services of ACB, the author conducts research on the whole ACB system.
- Research time
The data for the research is collected by the author from the financial statements, the report summarizing the activities for the year 2010-2015, and at the same time conducting a survey of officers and employees working at ACB during the year. 2015.
1.4 Research Methods
1.4.1 Qualitative research
This thesis uses specific qualitative research methods as follows:
- Synthetic research method with analytical data synthesized by the author from secondary data through the bank's financial statements
- Method of analysis and comparison: From the collected data, the author analyzes through the reported data of ACB and compares ACB with other banks on the basis of analyzing the current situation of service development. card
- The method of expert interview, group discussion aims to both discover and confirm the factors affecting the development of card services at ACB.
- In addition, the author uses statistical methods, describes, analyzes the databases, synthesizes the databases on card services at ACB.
1.4.2 Quantitative research
Besides qualitative research, the author uses quantitative research including survey, data collection and processing, factor analysis, regression analysis to test the factors affecting card service development. at ACB and Research Model as follows:
- Survey, collect data through research questionnaire: The topic uses primary and secondary data sources for reference and analysis for research purposes.
- Five-point Likert scale is the main scale in quantitative research.
- Data processing: the author uses statistical software SPSS 20 and reliability tests Cronbach Alpha, EFA, linear regression.
1.5 New contributions of the topic
1.5.1 Theoretically
- The thesis will systematically summarize the theories on the development of bank card services.
- Find out the factors affecting the development of card services of banks, propose a model to study the factors affecting the development of card services for commercial banks to apply on that basis to ACB.
1.5.2 In terms of practice
- Research results are the basis for the development of new features of card products and services to meet the increasing needs of customers such as security needs, convenience needs, express needs... Accordingly, the author will propose some measures to develop card services at ACB.
- Contributing to finding out the factors affecting the current card service development. Thereby is the basis for ACB to develop appropriate card product strategy and marketing policy.
1.6 The structure of the thesis: Consists of 5 chapters:
Chapter 1: Introduction of the research topic
Chapter 2: Overview of card service development at commercial banks
Chapter 3: Status of card service development at Asia Commercial Joint Stock Bank
Chapter 4: Research on factors affecting the development of card services at Asia Commercial Joint Stock Bank
Chapter 5: Solutions to develop card services at Asia Commercial Joint Stock Bank