Analysis and proposal of solutions to expand retail activities at Military Commercial Joint Stock Bank

o Bank equity.

Through the above analysis and calculation, it can be seen that if debt collection and management are done well (without having to set aside risk provisions), the above solutions are relatively feasible and the bank can gain a relatively large profit. However, the above data is for reference only, and through the solution, the following benefits can be obtained:

 Benefits of the solution

Build a business model that focuses on a specific customer group.

distinct. Fully exploit MB's products and services.

Have quantitative tools to manage the sales capacity of RMs, thereby having

Reasonable training program to change sales thinking according to international standards.

Shorten the time to provide products and services to customers while still preserving MB's capital.

In addition to the above qualitative benefits, we can achieve some quantitative indicators as follows:

Table 3.4: Expected Profit from Implementing the Compensation Plan

[Source: Author's synthesis]

INDICATORS

KH 2013	KH 2014 (*)	Apply the model
KH 2013	KH 2014 (*)	Additional data	Profit achieved
Private capital mobilization (billion VND)
+ Timely capital mobilization	610	793	6
+ Average capital mobilization	550	715	4	180
Personal credit balance (billion VND)
+ Credit balance at the time	140	182	6
+ Average credit balance	125	163	4	240
New customers developed during the year	5275	6,858	5,040	302
New Active Card Number Issued	3000	3,900	3,600

Maybe you are interested!

Newly issued Bankplus card number

1065	1,385	1,440
New Visa card number issued	72	94	504	105
eMB new development	296	385	504
BankPlus new development	200	260
Profit from retail activities (billion VND)	8.76 (**)	11.4		827
Profit before tax (billion VND)	34.92	45.39
Note: () 2014 plan increased by 130% compared to 2014 plan (*) Planned retail operating profit for 2013 is 25% of pre-tax profit. tax. - The data increases according to the model based on the data presented in Table 3.1; - Profit from the model based on the data presented in Table 3.2

With the above forecast table, we can see that applying the model will contribute ~9% of profit to the total retail operating profit of MB Vung Tau. However, applying the model will help MB Vung Tau achieve 73% of the new customer development plan, increase more than 500% of customers using Visa cards and increase more than 160% of customers using eMB, thereby helping to increase the proportion of using NHBL products of MB Vung Tau.

In addition, the model also helps individual RMs complete some assigned targets if they follow the right roadmap. Thereby, individual RMs have time to search for and deploy other MB's NHBL products and services in the near future.

3.4. SOME RECOMMENDATIONS

3.4.1. Recommendations to the State Bank.

Firstly , the State Bank needs to complete the system of legal documents and sub-law documents for credit activities in general and consumer lending activities in particular, avoiding overlapping legal documents that cause difficulties for the operations of commercial banks.

Second , the State Bank needs to come up with proactive policies.

Road, general development orientation for the commercial banking system in Vietnam.

Third , the State Bank must carry out its management of the commercial banking system more strictly. The State Bank needs to quickly provide accurate information when there is bad information that spreads and is detrimental to the banking system. In addition, the State Bank also needs to complete its credit information center (CIC) with requirements and sanctions for banks that are slow to update information to the CIC.

Fourth , in parallel with building a unified system of legal documents, the State Bank needs to issue specific decisions for the retail sector, and apply more international standards in domestic banking activities.

Fifth , is to accelerate the modernization of the banking system, especially automatic payment services through banks, ensuring speed, timeliness and accuracy. Strongly develop non-cash payment tools and services for businesses and residents. Quickly and effectively promote the banking modernization project to improve management capacity, business operations, develop new services...

3.4.2. Recommendations to Military Commercial Joint Stock Bank.

Firstly , it is necessary to perfect consumer lending policies such as: Overdraft, Visa..., so that it brings both safety and benefits to the bank and convenience to customers when transacting because this policy will guide the entire consumer credit granting process of the bank.

Second , MB needs to promptly issue documents directing and guiding the operations of its branches when there are new legal documents from the State Bank, the government and relevant ministries and branches related to the bank's consumer lending operations.

Third , banks should invest heavily in bank marketing activities to enhance the bank's image in the hearts of customers and help customers know about the products and services the bank is providing.

Fourth , it is necessary to focus on training human resources, establishing an operating apparatus, researching and developing consumer credit, and improving the level of consumer lending management in the system of transaction offices and branches of MB.

CONCLUSION OF CHAPTER 3

In chapter 3, the thesis focuses on providing solutions to overcome some weaknesses and maximize the strengths based on the existing human resources of MB Vung Tau. However, for the solutions to be effective, it depends on many conditions for implementation and methods of implementing the solutions at each specific stage. In addition, in this chapter, the thesis also presents some recommendations to the State Bank and MB to improve and develop retail services at MB in particular and for the commercial banking system in general. Hopefully, in the near future, the State Bank and the government, together with relevant ministries and branches, will have synchronous coordination to create conditions for the development of retail banking activities more strongly.

RESULTS AND DISCUSSION

The purpose of the thesis is to synthesize theories, analyze and evaluate the current situation and propose specific solutions and recommendations to help MB develop its banking services in a more balanced and harmonious way. From there, in order to contribute to improving MB's competitiveness in the integration process, the thesis has focused on solving some of the following contents:

Firstly, presenting the theoretical basis related to banking services, retail banking services through concepts, characteristics, roles and specific retail banking services. At the same time, the thesis also presents the concept and arguments on the necessity of developing retail banking services. In addition, the thesis analyzes the factors affecting the development of retail banking services of commercial banks to see the importance of each factor for retail banking services. The thesis points out the forms and perspectives of developing retail banking services in banking business that the author has researched. The criteria reflecting the development of retail banking services are also analyzed by the author in two aspects: qualitative and quantitative criteria. In addition, chapter 1 of the thesis also presents the development process of retail banking services of some banks in the world. And finally, the lessons learned in developing retail banking services for Vietnamese commercial banks in general and MB in particular.

Second, the thesis has introduced MB in general, analyzed the characteristics of MB's business activities, and factors affecting the development of retail banking services at MB. At the same time, the thesis has presented a panoramic picture of MB Vung Tau's business activities in the period of 2010 - 2012. Then, the thesis analyzed the current situation of MB's retail banking service development in the period of 2010 - 2012. Through analyzing the current situation of MB's retail banking service development and operation, the author has recognized the results that MB has achieved after a long period of innovation and development. At the same time, the thesis also pointed out the shortcomings that need to be overcome in the development of MB's retail services. Those shortcomings have objective and subjective causes originating from MB. Those

This reason is the basis for the orientation, strategy and specific solutions in chapter 3 to develop retail banking services, contributing to improving MB's competitiveness in the integration period.

Third, in order to have a basis for proposing solutions for developing retail banking services at MB, the thesis has presented the development orientation of the banking industry and the development orientation of retail banking services. Based on the existing problems analyzed by the author in Chapter 2, the author has developed a number of solutions for developing retail banking services at MB. In addition, the thesis also makes recommendations to the Government; the State Bank and relevant Ministries and Departments to create conditions for expanding and developing retail banking services of commercial banks in general and MB in particular.

When the above solutions are implemented synchronously and according to a reasonable and solid roadmap, they will contribute to perfecting the legal environment for Vietnamese banking activities in general and MB in particular, improving financial capacity, modernizing technology, improving management skills and human resource quality, contributing to the development of wholesale and retail banking services, thereby making MB increasingly strong and sustainable in the integrated and globalized economy.

REFERENCES

Vietnamese reference

1. Associate Professor, Dr. Nguyen Dang Don (Editor-in-Chief) and authors (2009), "Commercial Banking Operations", Ho Chi Minh City National University Publishing House.

2. Associate Professor, Dr. Nguyen Dang Don (Editor-in-Chief) and authors (2012), “Bank management

Modern commercial goods", Phuong Dong Publishing House .

3. Associate Professor, Dr. Nguyen Dang Don, Associate Professor, Dr. Hoang Duc, Associate Professor, Dr. Tran Huy Hoang, Dr. Tram Xuan Huong (2004), "Banking currency", Statistical Publishing House

4. Dr. Nguyen Minh Kieu (2011), "Commercial banking operations", Labor Publishing House

society.

5. Associate Professor, Dr. Phan Thi Thu Ha (2009), “Commercial bank management”, Transport Publishing House.

6. Phuong Nam Securities Joint Stock Company (2013), “Banking industry analysis report”.

7. MBS (2012), “Analysis report of Military Commercial Joint Stock Bank (MBB)”.

WEBSITE

1. http://www.acb.com.vn

2. http://www.bidv.com.vn

3. http://www.economy.com.vn Vietnam Economic Times

4. http://www.gso.com.vn General Statistics Office

5. http://www.hsbc.com.vn HSBC Bank Vietnam

6. http://www.mof.gov.vn Ministry of Finance of Vietnam

7. http://www.mpi.gov.vn Ministry of Planning and Investment

8. http://www.saga.com.vn Banking and financial analysis

9. http://www.saigontimes.com.vn Saigon Economic Magazine

10. http://www.sbv.gov.vn State Bank of Vietnam

11. http://www.techcombank.com.vn Techcombank Joint Stock Commercial Bank

12. http://www.ueh.edu.vn/tcptkt Economic Development Magazine

13. http://www.vcb.com.vn Bank for Foreign Trade of Vietnam

14. http://www.vnba.org.vn Financial and monetary market magazine

APPENDIX

Credit provision process at MB

(I) Implementation flow chart: (According to the model)

(II) Implementation explanation:

Phase 1: Credit appraisal and approval

(1.1) Receiving customer records

- At this stage, CV.QHKH performs the following procedures:

+ Search, market, receive customer needs.

+ Guide customers on loan conditions, procedures and documents.

+ Receive and check the completeness of loan applications.

- QHKH CV receives loan applications and customer information according to MB's regulations and instructions. Required documents (*):

+ Legal documents

+ Financial proof documents

+ Loan plan profile

+ Collateral profile

- Report to the competent authority for control (Head/Deputy Head/Director of Department) and continue

First contact with customers to evaluate collateral and loan options.

(1.2) Prepare credit proposal report

- CVQHKH prepares the Asset Valuation Record according to MB's regulations (if any).

- CVQHKH prepares credit proposal report for customer (according to Credit Proposal Report form on CRA credit rating and approval software), reports to competent authority (Head/Deputy Head/Director of Transaction Office) for approval on CRA system and transfers to TDTD according to MB regulations.

Note: CVQHKH is responsible for checking and verifying information before sending it to TDTD; regularly monitoring the process of appraisal and approval of documents, contacting and informing customers about the status of document processing and the expected time to complete the document. (1.3) Receiving and controlling documents

Analysis and proposal of solutions to expand retail activities at Military Commercial Joint Stock Bank - 19

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