CHAPTER 2: CURRENT STATUS OF CREDIT RATING OF CORPORATE CUSTOMERS AT ASIA COMMERCIAL JOINT STOCK BANK - HUE BRANCH
2.1. General introduction of Asia Commercial Joint Stock Bank and Asia Commercial Joint Stock Bank - Hue Branch
2.1.1. General introduction of Asia Commercial Joint Stock Bank
2.1.1.1. Brief introduction of Asia Commercial Joint Stock Bank
Asia Commercial Joint Stock Bank was established under License No. 0032/NH-GP issued by the State Bank of Vietnam on April 24, 1993, and License No. 533/GP-UB issued by the People's Committee of Ho Chi Minh City on May 13, 1993. On June 4, 1993, ACB officially came into operation with an initial charter capital of VND 20 billion.
- Organization name: ASIA COMMERCIAL JOINT STOCK BANK
- International transaction name: ASIA COMMERCIAL BANK
- Abbreviation: ACB
- Head office: 442 Nguyen Thi Minh Khai, District 3, Ho Chi Minh City
- Phone (84.8) 3929 0999
- Website http://www.acb.com.vn
- Phone: (848) 3929 0999. Fax: (848) 3839 9885.
- Telex: 813158 ACBVT SWIFT: ASCBVNVX
- Email: acb@acb.com.vn. Website: http://www.acb.com.vn
- Logo: On January 5, 2015, ACB officially launched a new brand identity associated with a new vision - affirming ACB's position as the leading bank in Vietnam, officially used:
Figure 2.1 - Logo of Asia Commercial Joint Stock Bank
(Source: www.acb.com.vn )
- Vision: To become and maintain the position as the leading retail joint stock commercial bank in Vietnam
- Operating motto: Always aim for perfection to serve customers.
- Charter capital: 9,376,965,060,000 VND (In words: Nine thousand three hundred seventy six billion nine hundred sixty five million sixty thousand VND.)
- Main business activities: Mobilizing short, medium and long-term capital in the form of savings deposits, payment deposits, deposit certificates; Receiving investment trust capital; Receiving capital from domestic and foreign credit institutions; Providing short, medium and long-term loans; Discounting commercial papers, bonds and valuable papers; Investing in economic organizations; Providing payment services between customers; Trading foreign currencies, gold and silver; International payments, securities investment; Providing investment services, debt management and asset exploitation services, providing other banking services.
- Network operations
346 branches and transaction offices, operating in 47 provinces and cities nationwide (as of December 31, 2014);
Card Center with 5,584 agents accepting card payments;
Western Union Fast Money Transfer Center with 392 payment points.
- Affiliated companies: Securities Company (ACBS); Bank Asset Management and Exploitation Company (ACBA); Financial Leasing Company (ACBL); ACB Fund Management Company (ACBC);
- Affiliated companies: Asia Commercial Bank Security Services Joint Stock Company (ACBD); ACB Real Estate Joint Stock Company (ACBR);
- Joint venture company: Saigon Jewelry Joint Stock Company ACB - SJC
2.1.1.2. History of formation and development
With the vision, goals and strategies of shareholders, ACB employees have been closely following throughout its 22 years of operation and the results achieved have proven that this is the right direction for ACB. At the same time, it helps the Bank affirm its position in the system of commercial banks in Vietnam in the retail sector. Below are some memorable milestones of ACB:
- Period 1993 - 1995: This is the period of ACB's formation. In this period, based on its competitive position, ACB focused on individual customers and businesses in the private sector, with a cautious view in granting credit, entering new products and services that the market did not have (consumer loans, Western Union fast money transfer services, credit cards).
- Period 1996 - 2000: ACB was the first joint stock commercial bank in Vietnam to issue international credit cards MasterCard and Visa. In 1997, ACB began to approach modern banking operations through a comprehensive two-year training program conducted by foreign lecturers in the banking sector. In 1999, ACB implemented a program to modernize banking information technology, building a wide area network system, aiming to onlineize and computerize transaction activities. In 2000, ACB restructured as part of its development strategy in the first half of the 2000s.
- Period 2001 - 2005: At the end of 2001, ACB officially operated the core banking technology system TCBS (The Complete Banking Solution: Complete Banking Solution).
comprehensive banking), allowing all branches and transaction offices to connect to each other, conduct instant transactions, and share a centralized database. In 2003, ACB built a quality management system according to ISO 9001:2000 standards. In 2005, ACB and Standard Chartered Bank (SCB) signed a comprehensive technical support agreement; and SCB became a strategic shareholder of ACB.
- Period 2006 - 2010: ACB listed on the Hanoi Stock Exchange in November 2006. In 2007, ACB accelerated the expansion of its operating network, established 31 new branches and transaction offices, established ACB Financial Leasing Company, cooperated with partners such as Open Solutions (OSI) - Thien Nam to upgrade the core banking system, cooperated with Microsoft on applying information technology to operations and management, cooperated with SCB on issuing bonds. ACB issued 10 million shares with a par value of VND 100 billion, with proceeds of more than VND 1,800 billion. In 2008, ACB established 75 new branches and transaction offices, cooperated with American Express on traveler's checks, and implemented JCB card payment acceptance services. ACB increased its charter capital to VND 6,355 billion. ACB won the title of “Best Bank in Vietnam 2008” awarded by Euromoney Magazine in Hong Kong.
- 2011: The orientation of “ACB’s development strategy for the period 2011-2015 and vision to 2020” was issued at the beginning of the year. It emphasized the program of transforming the management and operation system in accordance with Vietnamese laws and regulations and aiming to apply the best international practices. At the end of the year, ACB inaugurated the Enterprise Module Data Center in Ho Chi Minh City. During the year, ACB put into operation 45 more branches and transaction offices.
- 2012: The incident in August 2012 had a significant impact on many aspects of ACB's operations, especially gold mobilization and trading. However, ACB responded well to the incident; and quickly restored the entire VND savings mobilization balance within just 2 months. ACB has improved its balance sheet structure by handling the backlog related to gold trading activities according to the policy of the State Bank of Vietnam. ACB also drastically implemented cost reduction; step by step
Completed the risk management framework in terms of policy procedures; and established 16 new branches and transaction offices.
- 2013 - 2014 period: Although the operating results were not as expected, ACB still had a positive growth rate in VND mobilization and lending. Bad debt was controlled at 3% after strong measures in debt collection, credit risk handling and debt sale to the Vietnam Asset Management Company (VAMC). ACB also reduced the cost/income ratio to about 66%, down 7% compared to 2012. Regarding human resources, the scale was streamlined, and the replacement and addition of management levels were carried out regularly. The distribution channel network was also rearranged according to new regulations of the State Bank. The three-year operating situation from 2011 to 2013 was also re-evaluated and ACB's Development Strategy was also adjusted for the 2014 - 2018 period.
2.1.1.3. Organizational structure
- Seven blocks: Personal customers, Corporate customers, Treasury, Business development, Operations, Resource management, Information technology.
- Four departments: Internal control and inspection, Strategy, Quality assurance, Credit policy and management.
- Four departments: Accounting, Investment, Risk and Market Management, External Relations.
Diagram 2.1 - ACB's organizational chart (Appendix 09)
2.1.2. Introduction to Asia Commercial Joint Stock Bank – Hue Branch
2.1.2.1. General introduction of Asia Commercial Joint Stock Bank - Hue Branch
Asia Commercial Joint Stock Bank - Hue Branch was established under Decision No. 904/QD-BPC dated November 29, 2002. On June 24, 2005, the Bank was granted a business license and officially began operating on July 22, 2005.
Address: 01 Tran Hung Dao, Hue city, Thua Thien Hue province Phone: 0543.571175 Fax: 0543.571234
Website: :https://acb.com.vn. https://online.acb.com.vn .
The bank was established at a time when there were 4 State-owned commercial banks (Bank for Investment and Development Branch, Bank for Foreign Trade Branch, Bank for Agriculture and Rural Development Branch, Bank for Industry and Trade Branch) and 3 other joint stock commercial banks (Saigon Thuong Tin Bank Branch, Dong A Bank Branch, VPBank) operating in the province.
Therefore, ACB Hue is under great competitive pressure. However, in recent times, ACB Hue has continuously improved and added many new products and services to increasingly prove its position. As a result, ACB Hue has been recognized and known by many people as a trustworthy brand.
Currently in Thua Thien Hue province, ACB Hue has 1 branch and 2 transaction offices. In the near future, ACB Hue plans to open 3 more transaction offices, which will expand the branch's network of operations in the area, creating very favorable conditions for finding more new customers for the branch.
2.1.2.2. Fields of operation
Mobilizing short-term, medium-term and long-term capital in the form of term and non-term deposits; Receiving investment and development trust capital from domestic organizations; Borrowing capital from other credit institutions; Providing short-term, medium-term and long-term loans; Discounting commercial papers, bills of exchange, and valuable papers; Contributing capital and joint ventures according to the law; Providing payment services between banks; Trading in foreign currencies, gold and silver and international payment services; Mobilizing capital from abroad and other banking services in foreign relations when permitted by the State Bank; Factoring activities.
2.1.2.3. Organizational structure and personnel situation
a. Organizational structure
+ Board of Directors
Manage all branch operations, develop, implement and check action plans to complete plans assigned by the General Director.
+ Science and Technology Department
Implementing credit products and services for science and technology: Business planning, customer search, customer evaluation. The purpose of undertaking expertise in science and technology, with specific tasks being: Searching and evaluating customers, collecting initial information to serve future appraisal, introducing customers to products and services and advertising the Bank's brand as well as the branch.
+ KHDN Department
Implement credit products and services for corporate and private enterprises: Make business plans, search for customers, evaluate customers.
+ Operation department
Business support department
Perform professional support functions for departments: Track loan records, manage customers, advise customers on loan and deposit products, prepare and execute contracts, appraise assets, handle overdue debts, etc.
Transaction Office - Treasury
Consists of two main departments: Accounting - Treasury. Performs the following functions: customer contact and transactions, collection and payment; trading in gold, foreign currencies and directly accounting, statistical accounting and payment according to regulations.
Accounting Department:
With the main functions of building the Bank's organizational regulations, managing the quantity, quality, and records of all officers and employees in the Bank; building labor and salary plans; managing the salary fund in the Bank, building
Develop labor regulations, collective labor agreements, etc. Control the unit's revenues and expenditures according to accounting standards and comply with ACB regulations.
Abbreviations in diagram 2.2:
Head of Corporate Clients | |
RM | Customer Relationship Manager |
RO | Customer Relations Specialist |
GO OUT | Customer Relations Officer |
CBL | Head of Private Clients |
PFC – L | Head of Financial Advisory |
PFC – 2 | Financial Consultant |
PFC – 1 | Financial advisor |
CA – L | Head of Credit Analysis |
CA – 2 | Credit Analyst |
CA – 1 | Credit Analyst |
HT & NV | Support and service |
KSV | Controller |
CSR | Customer Service Representative |
LDO | Legal documents |
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![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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