Customer Reviews of Trading Network

BIDV's interest rate policy is still not competitive compared to banks such as Agribank, Vietinbank, policy banks...

* Distribution channels and transaction office network : With BIDV's policy of developing into a leading retail bank in Vietnam, and at the same time identifying the significance of network expansion that has a positive impact on expanding the lending service market in general and the consumer lending service market in particular, in the recent past, the Branch has focused on developing the network to 11 transaction offices and 11 transaction offices of BIDV Thanh Dong and BIDV Bac Hai Duong branches, so BIDV has the 3rd largest distribution channel system among banks in Hai Duong province (Table 2:2). Therefore, the branch's personal credit network is widely distributed in key areas in the province's target market, with beautiful and spacious locations and modern equipment systems, attracting customers.

Source: Author's survey results

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Figure 2.5: Customer reviews of the trading network

According to the survey results, customers' assessment of the location of BIDV Hai Duong transaction offices is relatively convenient, but the satisfaction level is still not high because the network of transaction offices is only concentrated in Hai Duong City and in the center of communes and districts is still limited, forcing them to travel quite far to make transactions. Customers in need often go to familiar banks such as Agribank and Vietinbank.

* Promotion program

To evaluate the Bank's promotion program based on the following criteria: Level of communication, advertising and trade promotion, promotion.

- Communication level: Communication and advertising activities are assigned to specialized units for events and service advertising undertaken by the Communication Department, with the main forms being printing banners, X-shaped stands hanging at transaction points, advertising on LED screens at branch offices and computer screens, advertising via electronic screens at transaction offices, ATM screens, machine screens, advertising services via customer emails, distributing service leaflets. According to statistics on the survey results on how customers know about KHCN loan products and services, it shows that 50.6% of respondents were introduced by others, 10.6% of respondents were through communication and advertising, 27.1% through leaflets.

- Marketing work: Has been paid attention to and thoroughly implemented by each QHKHCN officer, that is, QHKHCN officers come to contact customers directly to introduce products or through affiliated partners, socio-economic organizations in the province, to introduce products and services for lending to science and technology.

12.9%

Other people recommend

10.6%

40.0%

Banners, flyers

Media, advertising

36.5%

Marketed by NVNH

Source: Author's survey results

Figure 2.6: How customers learn about products and services

According to the survey results, the rate of customers who know about the KHCN loan service products through introduction and consultation by bank staff is not high (112.9%), leading to the consequence that the customers coming to the Branch are mainly small customers who find it themselves or are introduced by others, or only come to the Branch when they have been rejected by other banks, proving that the Branch is still passive in finding customers.

- Promotional programs: Consumer psychology is very interested in promotions, so BIDV has implemented promotional programs when using the Bank's products and services on promotional occasions offered by BIDV, or promotions on New Year's Eve, April 30th, holidays... in the year, at the same time there are lucky draw programs or programs to give or reduce insurance premiums when customers use the bank's KHCN lending services. However, the promotional programs are all designed by BIDV and guided by the branches to implement, so there are still some limitations that the promotional programs only occur at certain times, not regularly, causing a situation where some people get it and some don't, causing dissatisfaction among customers, leading to dissatisfaction, clearly shown through the author's survey results on customer evaluation of the content "attractive promotional program" disagreeing more than 50%, agreeing with a low rate (23%).

8.24%

Very attractive

16.47%

Attractive

50.59%

24.71%

Normal

Unattractive

Source: Author's survey results

Figure 2.7: Customer reviews of promotional programs

- Customer care relationship: with customer service hotline managed by the Customer Care Center - BIDV Contact Center via hotline 19009247 or 0422200588, or send an email to bidv247@bidv.com.vn, all customer comments will be answered by the Center's staff 24/7 anytime, anywhere with the motto "Dedicated sharing - Accumulating trust". In addition, the Branch regularly contacts customers via text messaging, listens to customers' comments and has

received positive feedback and had a strong impact, attracting the attention of customers. However, due to limited funding and the number of staff in the Customer Service Department who have to take on many tasks, the organization of customer meetings, monitoring and care is somewhat limited.

150.0%

100.0%

50.0%

0.0%

Satisfactory resolution of customer complaints

Keep in touch often

through with KH

Agree Binh No

usually agree

Good 24/7 hotline customer service

Source: Author's survey results Figure 2.8: Customer evaluation of the branch's customer service relationship According to the survey results, current customers are most satisfied with being

24/7 hotline service, but the least satisfied and most satisfied with the factor of staff not being able to answer customers' questions. In addition, every year the Branch cooperates with the parent bank to organize an annual conference, a VIP customer appreciation program at a high-class resort...

* Brand development of BIDV Hai Duong

BIDV Hai Duong has its head office at No. 2 Le Thanh Nghi, Hai Duong City, with a floor area of 1,500 m2 , built 8 floors since 2002, has 11 transaction offices and 11 transaction offices of 2 BIDV branches Bac Hai Duong and BIDV Thanh Dong, along with 46 ATMs located on roads, towns, industrial parks, and densely populated areas of the district throughout the province, meeting standards such as: facade > 6 m, floor area from 80 m2 or more, synchronous signs, logos, slogans, employees are fully equipped with computers, uniforms, stationery, software, standard technology

BIDV nationwide, along with other facilities. Most customers rated it as synchronous, unified and easily recognizable, accounting for 88.2%; and only 5.85% of customers rated the staff as well-qualified, handling business accurately and 92.9%

Dynamic and enthusiastic staff; and more than 70% of customers rated the brand of BIDV Hai Duong Branch as very strong, only 9% of customers rated it as not having a brand, these are also customers who are not satisfied with some factors of BIDV Hai Duong, so besides the successes, the Branch also needs to pay more attention to developing the brand to become stronger and have a position in the area.

5.9%

Very strong

22.4%

Normal

71.8%

No brand yet

Source: Author's survey results

Figure 2.9: Customer evaluation of BIDV brand

All the above tangible and intangible factors have built trust accounting for nearly 100% and created a strong brand for BIDV in general and BIDV Hai Duong in particular with individual customers.

2.2.4. Current status of implementing science and technology loans of BIDV Hai Duong

Based on the basic steps of the credit process, BIDV has built a relatively complete and increasingly standardized lending process in general and the lending process for small and medium enterprises in particular in order to have a fast, convenient and effective service provision process, creating a competitive advantage, and at the same time to improve the quality of customer service. Currently, BIDV Hai Duong has applied and implemented synchronously in all departments at the Branch to transaction offices all BIDV processes and regulations, ensuring compliance with consistency throughout the BIDV system. Specifically, the lending process for small and medium enterprises at the branch can be summarized as follows:

Step 1: Prepare loan application

Basically it will include 3 small steps:

a, Marketing to customers about BIDV's products and services

QHKHCN officers are the ones who directly provide banking products and services to customers. All QHKHCN officers are directly responsible for comprehensively marketing BIDV's current banking products and services to customers, including the following groups: QHKHCN loan products; capital mobilization products; value-added service products, modern banking, etc.

b, Meet, interview and guide customers to complete loan application:

When customers have a need to use the Bank's products, the Customer Service Officer will conduct a preliminary interview with the customer to clarify the following contents:

- Grasp customer credit needs and conditions;

- Ability to meet the conditions of each specific KHCN loan product;

According to the regulations of each specific KHCN loan product, the assigned KHCN officer is responsible for guiding customers to complete the loan application in detail and completely and requesting customers to provide the application at once to avoid causing inconvenience to customers. On that basis, determine and advise customers to use the most suitable KHCN loan product.

c, Receiving documents and checking the suitability of loan documents:

This step is performed by the QHKHCN staff immediately after contacting the customer.

In general, a loan application needs to collect information such as:

Legal capacity, civil capacity of customers

Purpose of loan

Ability to repay debt (loan principal + interest)

QHKHCN staff receives documents and checks the completeness and suitability of the documents provided by the customer.

Step 2: Credit Analysis

Evaluate, analyze documents, prepare and approve credit proposal reports, document analysis content includes:

- Customer information: Full name, date of birth, place of residence, family history, job information

- Customer's financial capacity: Assess customer's financial situation such as income, salary, business activities, ...

- Credit relationship history: Includes all information related to customers' credit relationships at Vietnam Joint Stock Commercial Bank for Investment and Development and at other credit institutions.

- Production and business plan, loan plan: analyze the feasibility and effectiveness of the loan plan.

- Collateral: consider legality, marketability, asset value, ...

After fully evaluating the factors, comparing them with the conditions of the KHCN loan product, and assessing the customer's ability to repay, the KHCN staff prepares a credit proposal report and submits it to the competent authority for approval.

Step 3: Make a credit decision

- Within the authority of the Branch:

+ Loans must be re-evaluated by the risk management department: for large loans that are complex and have high risks, they must be re-evaluated by the risk management department before a decision is made to grant credit. The specific levels and types are decided by the Branch Director within the scope of authority assigned by BIDV for each period. In these cases, the Branch Credit Council and the Director decide to grant credit.

+ Loans that do not go through the risk management department: are small value loans, low risk, simple, the Deputy Director of Customer Relations is the person who makes the decision to grant credit.

- Loans beyond the Branch's authority: The Branch submits to the Vietnam Development Bank for approval.

Step 4: Disbursement

After the credit decision is made, the customer and the Bank sign a credit contract, a loan guarantee contract and carry out legal procedures regarding collateral and other conditions in the Bank's credit decision.

Based on the credit contract and disbursement documents, relevant departments (Customer Relations Department, Credit Management Department, Customer Service Department) disburse to customers in accordance with regulations.

Disbursement principle: must link the monetary movement with the actual borrowing needs of customers, in order to check the purpose of using the loan of customers and ensure the ability to collect debts. But at the same time, must also create convenience, avoid causing trouble for customers' work.

Step 5: Credit monitoring

QHKHCN staff is responsible for checking and monitoring borrowers, loans, and loan purposes to detect signs of risk in order to propose preventive measures and report to branch leaders. Loans must be re-evaluated monthly and debt classification must be performed in accordance with Decision No. 493 and Decision No. 18 of the State Bank and BIDV's guiding documents.

In addition to the above credit monitoring contents, basically after lending, QHKHCN officers need to monitor and are required to seriously perform the following main tasks related to the loan:

(i) Debt collection, that is, when the principal and/or interest are due, the Bank will collect the debt in accordance with the terms and conditions in the signed credit contract.

(ii) Or credit adjustment: When customers have a need for credit adjustment or the QHKHCN Department proactively proposes credit adjustment based on loan assessment, collateral, etc. or warning information from the Risk Management Department, the QHKHCN officer in charge of the loan is the focal point to receive customer requests and submit them to the competent authority for approval. The content of credit adjustment includes: Adjusting the loan limit/amount; Debt extension, debt term adjustment; Adjusting credit conditions: Security measures, collateral, etc. and other credit adjustments. The order and procedures are the same as reviewing and approving new loans, based on consideration and simplification of procedures.

(iii ) Handling and recovering overdue debts: For overdue debts and bad debts, the Bank regularly monitors and urges customers to repay debts and implements debt collection measures in accordance with the provisions of law.

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