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Criteria for Evaluating the Development of Commercial Bank's Banking Services

All of these factors contribute to improving the efficiency of bank operations.

1.2.2.4. Digital development

number of individual and household customers

family and small and medium enterprises,

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including increasing the quantity and quality of individual, household and SME customers each year or each period. Customer quality is measured by the ratio of active customers to the total number of existing customers, and the ratio of products used by customers / active customers. To develop this number of customers, banks need to: Build customer programs

Intimate with solutions such as points and levels; Quality commitment

Criteria for Evaluating the Development of Commercial Bank's Banking Services

quality of banking products and services and enhance the bank's services through dedicated and thoughtful customer care...

1.2.2.5. Development of distribution network and channel : Distribution network and channel play an important role in developing banking services. There are 2 types of distribution channels today : (1) Traditional distribution channel directly distributes banking services to customers mainly based on the direct labor of bank staff; (2) Modern distribution channel, which is the distribution of banking services through affiliated companies, electronic banking systems, smart cards and contact center systems. This distribution channel will develop strongly with the explosion of science and technology. If this distribution channel is well exploited, it will reduce the pressure of serving customers in traditional channels, not be limited by space and time, reduce staff costs and office costs, and improve the efficiency of banking services.

1.2.2.6. Developing new product and service systems : Is the process of researching and introducing new products and services to meet customer needs and improving existing products and services to increase revenue for the bank .

1.2.3. Criteria for evaluating the development of commercial bank's NHBL services

1.2.3.1. Quantitative criteria

i. Increase in NHBL product and service portfolio

Shown by the increase and growth in the number of products and services provided to customers. Because customer needs are increasingly diverse and more demanding, banks must constantly improve and develop services as well as increase the provision of the best services to customers, especially the trend of linking services into diverse packages. Besides, because of the need to disperse risks and increase income, banks also increase and expand the list of banking services. In order to develop long-term, attract and maintain the number of individual customers, SMEs, increase customer choice,

To increase competition, banks must provide a portfolio of products.

Diversified retail products and services, meeting more and more customer needs. A bank with a poor product portfolio cannot be considered to have the potential to develop products and services.


This criterion reflects the increase in the number of NHBL products and services over different periods of commercial banks. This high ratio proves that the bank always focuses on diversification, meeting more and more customer needs, reflecting the potential for good NHBL service development and vice versa.

ii. Increase market share of NHBL service provision

The market share of NHBL services shows the competitiveness of commercial banks, strong or weak, more or less than other commercial banks. The market share of NHBL services increases when the products and services of commercial banks satisfy more and more market needs.

attract more customers and vice versa. Market share is also a measure

Evaluate customer trust in commercial bank products and services

This criterion shows the growth rate of NHBL market share associated with each segment.

market segment. A high growth NHBL product or service can

Currently, that NHBL service has good quality and is highly competitive.

iii. Customer growth

This is a criterion that clearly measures the development of NHBL services. The number of customers using NHBL services increases or decreases, more or less than the bank itself in the previous period or compared to other commercial banks, showing the level and speed of development of NHBL services.


iv. Scale of outstanding debt of NHBL services

The scale of outstanding debt of NHBL services is the amount of money that commercial banks lend to individuals, households and SMEs at a specific point in time. The scale of outstanding debt of NHBL services increases or decreases, more or less than the bank itself in the previous period or compared to other commercial banks, showing the level and speed of development of NHBL services.


In which, the scale of outstanding NHBL service debt is measured by the final credit balance.

period

v. Scale of capital mobilization for NHBL services

Is the amount of money that commercial banks mobilize from individuals, households and SMEs.

calculated at a specific point in time. The growth rate of capital mobilization from retail activities is a criterion for measuring the development of NHBL services.


In which, the scale of capital mobilization for NHBL services is measured by the deposit balance of individuals, households and SMEs at the end of the period.

vi. The increase in the distribution channel system of commercial banks' banking services

Branch system and distribution channels help customers access and use

use service

be easy. System

The more developed the distribution system is, the more

Banks attract more and more customers. Nowadays, to meet the needs

of customers banks increasingly focus on investment expansion

on the quantity and quality of distribution channels. In addition to distribution channels

Traditionally, branches and transaction offices are used, but electronic distribution channels based on the internet, payment points at ATMs, POS... are increasingly used by businesses.

banks take full advantage of

improve service quality, attract

guest

goods, to serve a large number of individual customers at the same time.


vii. Business efficiency of retail banking services

Revenue growth from retail banking services and the proportion of retail revenue in total revenue of commercial banks : Revenue from retail banking services is the total amount of money that commercial banks receive from providing retail banking products and services to customers. At a certain price, when commercial banks improve their competitiveness in the market, increase their market share, retail banking products and services attract more customers or customers use the bank's services more, revenue will inevitably increase. Revenue from retail banking services increases is a criterion to evaluate the development of retail banking services. The proportion of retail revenue is the ratio between revenue from retail banking services and total revenue from all commercial banking services. The higher this ratio is, the better.

see the opposite service business.

The more the bank's NHBL develops and


This criterion shows the relative growth rate of revenue over periods. If the growth rate is high and stable over time, it is considered a

evaluated as sustainable, demonstrating the competitiveness of products and services

That NHBL is showing a growing trend, showing that the bank's competitive efforts are on the right track.


This criterion shows the proportion of revenue from NHBL services to the total revenue from all activities of the commercial bank. This high proportion shows that the NHBL service segment of the bank is developing strongly and vice versa.

The growth of profit from retail banking services and the proportion of retail profit in total profit of commercial banks: is the most authentic quantitative criterion to evaluate

evaluate the effectiveness of developing retail services of commercial banks. Although the business object is a special type of goods, which is currency, but like any commercial enterprise in other fields, the business activities of commercial banks also aim at the ultimate goal of maximizing profits. If revenue only reflects the growth of retail banking services, then profits reflect the effectiveness of the service.

NHBL service when controlling costs at a reasonable level during the development process

services and efforts to increase revenue. The profit ratio from NHBL services is the ratio between the profit earned from NHBL services and the total profit from all services of the commercial bank. The higher this ratio, the more effective the NHBL service development strategy is and vice versa.


This criterion can be

current growth rate of profit from

service

NHBL over time. If this growth rate is high and stable over time, the NHBL service activities of the bank are considered sustainable and developing and vice versa.


This criterion is a quantitative measure of service development.

NHBL of commercial banks. Rate

development and vice versa

This high weight proves

service sector

NHBL of NH

1.2.3.2. Qualitative criteria

i. Development of NHBL service quality

The commercial bank that can serve and satisfy its customers in the most professional manner, with the simplest and safest procedures will be the leading commercial bank in retail activities. Commercial bank services are highly convenient, meeting the needs of customers.

Full of daily necessities will be selected and used by customers.

widely used. Online banking and payment cards are the most convenient services currently provided by commercial banks.

ii. Increase in NHBL service utilities

In addition to increasing the number of retail product categories, banks must increase accompanying amenities to meet the diverse needs of customers.

individual. With the

application of achievements of science and technology

allow

Business activities not only grow in breadth but also in depth.

In depth, it is to increase the technological content of a service to increase the convenience of that service.

Convenient products based on technology platforms include: Online banking that allows transactions nationwide with the same account;

Multi-functional card products; fast domestic and international money transfers,

efficiency.... The higher the safety, the more the bank is trusted by the

customers, and banks are businesses that operate primarily on reputation. The safety of providing banking services is reflected in the safety of funds, the safety of applying modern technologies, and the safety of customer information. As the financial market and information technology develop, the safety of banking operations becomes increasingly important and becomes a matter of survival. With security technologies and guarantees such as electronic signatures, transmission encryption, etc., the safety of products has been and is being enhanced.

iii. Customer satisfaction with NHBL products and services

The level of meeting needs is measured by the ability to satisfy, the level of customer satisfaction with the structure of retail banking products and services of the bank. If the quality of banking services is increasingly perfect, of high quality, customers will stick with the bank for a long time and accept it. Not only that, the compliments, satisfaction with the quality of existing customers will inform others who need to use the service to come to the bank for transactions. The perfection of the service is understood as a service with high utilities, minimizing errors and risks in business.

service business. The increasingly perfect quality of bank services makes customers feel secure and trust the bank.

Customer satisfaction will increase when NHBL products and services are expanded in scale and improved in quality. This is achieved thanks to the synchronous development of infrastructure and qualifications.

IT, product type, product utility, human resources, safety,

distribution network, customer information….Customer satisfaction level

When using products and services that affect the retail sales of commercial banks.

increase, decrease number

number of visitors

Research on measuring satisfaction will help banks understand the most realistic needs of customers to make appropriate improvements in building business strategies for each period, meeting the increasing needs of customers and enhancing trust, attachment, building an irreplaceable image of the bank with customers. Customer satisfaction can be measured in many different and diverse forms such as: distributing survey forms, suggestion boxes, suggestion books and telephone channels...

1.2.3.3. Other criteria

Service structure

retail banking is billion

importance of each type of service

NHBL on the total value of NHBL services in a given period.

According to customer target,

This structure includes: services

NHBL for

individual and household customers and NHBL services for SME customers.

According to the list of NHBL services , this structure includes: Deposits, cards , loans, insurance, priority customers, payment services and other services .

According to the nature of the service product , this structure includes : profit-generating retail service products and fee- generating retail service products .

Research the structure of commercial banks' banking services to have an overview of the types of banking services, the contribution of each banking service product in each period, the advantages and limitations of each banking service in each period... to

From there, commercial banks can develop appropriate policies for each type of service, in different periods, and build an optimal retail service structure in each period.

period, to expand and improve the efficiency of the NHBL service sector.

1.2.4. Factors affecting the development of retail banking services of commercial banks

1.2.4.1. Objective factors

Policy and institutional factors : Economic management policies, especially macroeconomic policies of the Government and state management agencies, will directly impact banking activities in general and retail banking activities in particular. Among macroeconomic policies , the two most important policies that have the strongest impact on banking activities are: Financial policy and monetary policy.

Economic environment factors : Banking business in general and retail banking business in particular are affected by the global economic situation and each country 's . Depending on the development situation

of the economy

which retail banking business

have dimensions

different development directions.

Factor

society:

Factor

society is one of the factors

quite important

important factors affecting banking activities in general and retail banking activities in particular. Among the social factors, the factors: population size, population distribution, educational level, labor force, and average income per capita are the main factors affecting this business activity.

Competitor

compete:

Competitor

Competition is a factor

important

image

influence the bank's strategy and tactics to compete for customer market share, develop new and differentiated products and services. In addition, competitors are a valuable source of information used by bank managers to support decision making related to product development.

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