Developing personal customer loans at Vietnam Cooperative Bank - Bac Ninh Branch

- The transaction area that requires fast speed such as cash withdrawals, deposits into accounts... is specially designed to help customers quickly perform their transaction needs and minimize waiting time. In this area, utilities are often located right at the entrance of the Branch to allow customers to transact, enter and exit quickly. Fully automatic transaction points are located at the entrance of the Branch lobby, operating 24/7 without having to go through the transaction counter.

- On the contrary, the area specializing in introducing and consulting products such as credit cards, payment accounts and loan applications is designed with a private, luxurious space to slow down customers' footsteps and encourage customers to stop and look at the products and services introduced there. In addition, there is an area reserved for VIP customers to make important transactions and a team of professional staff ready to serve the specific requests of VIP customers. Customers will have the opportunity to exchange experiences with each other about products, services or things they are satisfied with when in a more spacious, comfortable space. Thus, designing a more open space will attract and increase the comfort of customers when coming to the Bank to do transactions.

Research and expand the network of transaction offices within the zoning area, develop a specific roadmap and seriously implement according to the set roadmap. It is necessary to maintain and expand traditional distribution channels: branches, transaction offices, savings funds, and form personal financial service centers to become modern, customer-friendly financial centers.

In addition to traditional distribution channels, electronic banking services (Internet banking, mobile banking, ATM,...) are one of the strengths in competition between banks. Continue to consolidate and improve the infrastructure of transaction spaces in accordance with the regulations on identifying transaction spaces associated with the reality at the Branch, and at the same time review and renovate the system of signs and advertising boards at the ATM network and transaction office network.

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In the coming time, Vietnam Cooperative Bank - Bac Ninh Branch will continue to improve and add many new services and utilities such as: choosing a beautiful account number (date of birth, easy-to-remember number, with many meanings of luck...), overdraft loan service with collateral...

The results obtained from the development of comprehensive financial products and services to support the system and people in rural areas will be the premise and motivation for the Vietnam Cooperative Bank to continue investing, researching and deploying many new modern products and services such as: Mobile Banking, e-wallet, QR Pay... to promote the role of a focal point, a solid pillar for the Cooperative Bank system to operate safely, effectively and develop sustainably.

3.2.1.2 Customer care

Because there are many credit institutions operating in the area, competition between banks is very fierce, so customer care activities must be given more attention and developed by the Branch.

- The Bank must build and maintain a good relationship between the Branch and the customer. For first-time customers, the Branch needs to create understanding between the customer and the Branch, the Customer Service staff needs to proactively learn, guide and help customers carry out procedures, answer questions, bring customers convenience and comfort. For traditional customers, the Branch can have preferential interest rates, loan conditions for customers, carry out after-sales activities such as: giving gifts, greeting cards on holidays, birthday gifts...

- Banks need to take care of and pay attention to old customers. One of the remaining shortcomings is that they place too much importance on finding new customers and sometimes neglect taking care of old customers. Old customers, especially customers with long-term relationships with the bank, are very important customers and bring great economic benefits to the bank, so the branch needs to pay more special attention. Besides focusing on building relationships with new customers, the bank must not neglect maintaining and developing relationships with old customers. The customer care department must continuously collect feedback from customers to make appropriate adjustments.

about the product. The marketing department must research and offer promotional programs and preferential policies for borrowers to encourage them to continue borrowing from the Bank.

- Banks need to improve service quality. Currently, for banks, how to attract customers to their services and how to retain customers is quite difficult. To do this, not just one individual can do it, but all employees of the Vietnam Cooperative Bank, Bac Ninh Branch, must take care of customers and consider customers as God because customers are the ones who bring benefits to the Bank. Therefore, the Bank must put service quality first through customer care, showing the Bank's concern for customers, always creating a good impression in the eyes of customers. This is shown through the service attitude of the Bank's staff towards customers. Customers who have had relationships with the Cooperative Bank of Vietnam, Bac Ninh Branch, also receive more preferential treatment than first-time customers, such as lower interest rates, fee exemptions, shorter and faster loan procedures, and advice for customers to use more cross-selling products and services of the Cooperative Bank of Vietnam. This makes customers feel prioritized and have a long-term commitment to the Bank.

3.2.1.3 Improve the effectiveness of Bank communication

Promotion and communication activities of the Bank create conditions for the Bank to reach customers on a large scale through promoting the image and brand of the Bank to customers, in order to create higher customer awareness of the Bank and the products and services that the Bank provides. Currently, competition in the financial and banking sector is extremely fierce. Therefore, brand awareness is even more important. The Cooperative Bank of Vietnam, Bac Ninh Branch, has also focused on communication work, however, the promotion of brand image is still limited. To overcome this, the Cooperative Bank of Vietnam, Bac Ninh Branch, needs to implement the following measures:

- In the immediate future, improve the quality of advertising, leaflets, and use mass media to disseminate widely. The requirements for the information conveyed are easy to understand, easy to know, and highly appetizing for bank products and services. When printing leaflets introducing products and services as well as the features of each product, they must be concise, easy to understand, and placed in locations that are easy to attract customers so that customers can grasp the products and services of the Vietnam Cooperative Bank, Bac Ninh Branch, and proactively seek out the bank when needed. For example, placing boards introducing project home loan products at real estate trading floors, real estate project investment offices, introducing car loan products at car showrooms, and introducing credit card products at shopping centers.

- Strengthen propaganda and promote the image of the Branch as a convenient and safe place for customers to come to do transactions. Pay attention to cultural - artistic - sports sponsorship activities, grant scholarships to students of universities in the area... so that more people know about the Branch's activities, promote the expansion of the Branch's activities.

- Along with the form of advertising, image promotion is a form of promotion, this is a form of support for advertising, image promotion, creating attractiveness and richness for advertising, offering diverse forms of promotion, or at the right time, it will immediately create excitement for customers, customers not only enjoy preferential interest rates but also enjoy the services brought by promotions.

- Organize press conferences and customer conferences to introduce the development orientation of its personal lending activities. Here, information about existing products and plans to deploy new high-quality products will be provided to the press and customers. At the same time, collect feedback and answer questions from customers when borrowing capital from the Bank. This is a very effective measure for the Bank and customers to understand each other more deeply, helping to expand and strengthen the credit relationship between the two parties.

- Use media such as television, newspapers, Internet... to introduce the Bank and preferential policies for customers in need of loans.

advertising new products, especially those about to be launched on the market. This measure not only helps the Bank's image become more popular but also helps convey a goodwill message from the Bank to customers.

- Sponsoring typical events to attract consumer attention. All events that attract social attention should be utilized to make the Bank's brand more familiar. However, it is also necessary to be selective when sponsoring, avoiding sponsoring events that are not suitable for the Bank's operations.

- Actively seek new customers. Banks can organize press conferences to introduce products, or organize events to promote new products, guide and advise customers in choosing products and services that are suitable for them. This is a direct measure to increase the number of customers borrowing from banks, thereby improving the quality of personal loans.

- Promote email advertising channels because using email for marketing will save the Bank a lot of costs, however this form is mainly used with customers in the city.

- The application of information technology contributes to the creation of modern banking products and services, bringing many benefits to customers, banks and the economy thanks to its utility, convenience, speed, accuracy and security. The article studies the current situation and proposes solutions to promote the application of information technology in the development of products and services of commercial banks in Vietnam in the context of the 4.0 Industrial Revolution and international integration in the banking and finance sector. Firstly, focusing on researching and applying the technologies of the 4.0 Industrial Revolution to gradually modernize, effectively support the transformation of organizational structure, improve management and operational capacity; Increase the proportion of non-credit services, improve competitiveness and increase transparency. Second, upgrade the new generation core banking system according to the design of digital banking, with digitized processes, smart management, automated processing and risk control, fraud based on artificial intelligence technologies, big data analysis and automatic robots, to effectively support management, operation, business and risk prevention.

risk, meeting the roadmap for Basel II application. Third, ensure network security. Each bank needs to secure internal processes, security must be implemented from the awareness of each bank employee. Fourth, strengthen cooperation with domestic and foreign IT corporations and companies to share experiences, exchange information, transfer technology, and update IT development trends suitable for the banking industry.

3.2.2 Complete the development of a personal loan plan

Every year, based on the economic development situation in the region as well as the credit needs of individual customers, Cooperative Bank - Bac Ninh Branch makes a lending plan, based on the actual situation and seriously implements the plan.

Here are some solutions to improve the personal loan plan at Cooperative Bank - Bac Ninh Branch:

- First, conduct market research to find target customer groups.

In fact, capturing market segments in the current fierce competition period becomes more important when there are more and more domestic and foreign commercial banks operating in the area. The more customers use the services, the more the Bank increases its revenue and profit, so evaluating customers and collecting customer information for classification is necessary and important.

Information collection can be based on many different sources: from government reports, from trade associations, etc. Depending on the appropriate time, the information should be integrated into the system for storage when it is necessary to deploy a product or a customer that can exploit it.

Understand the target audience that the bank needs to target, what products will the bank market? (in terms of product quality, time quality, space quality, brand quality, price quality...)

+ When approaching a customer or potential customer, the bank must answer the following questions: where do customers know about the branch?

Where? What is their impression of the branch? Who are they? What do they think? What do they need? How do they feel?

How do they feel? What do they like about competitor banks? What do they do to make them feel most satisfied?

+ When customers have accessed the product, it is necessary to exchange information with customers about product quality, features, etc.

- Second, survey competitors including domestic and foreign banks.

Competitors are an important factor to study for successful business. Knowing who the branch’s competitors are and what they offer can help the branch orient itself to make its products, services and marketing strategies stand out in the market. In the age of information technology development, customers can easily search for places that provide products and services in the area. Cooperative Bank – Bac Ninh Branch no longer only competes with domestic banks but can also compete with foreign banks from other countries.

+ Monitoring Facebook posts and other media programs of competitors in the same industry is an easy, effective and low-cost way to keep up with the trends of rival banks. Even if those banks do not use online media, branches can still register to receive emails, catalogs... to update the latest news about products and promotions, events that they organize.

+ Gain valuable insights by studying the job openings that rival banks are looking to fill. If they are hiring a large number of personal relationship managers, they may be preparing to enter a new market or expand…

- Third, the monthly planning staff coordinates closely with the staff directly lending to individual customers to grasp the actual situation and propose difficulties and problems to the Board of Directors for timely resolution, while at the same time implementing the plan smoothly. In addition, this also helps the plan to be closer to reality.

3.2.3 Flexible application of lending processes, simplifying loan procedures.

Credit officers need to closely follow the process, especially in important stages such as appraisal, which is an important stage such as credit appraisal and later credit quality.

It is necessary to properly implement the lending procedures. However, credit officers also need to be flexible in applying this process to each specific case. For traditional customers who need short-term loans, the customer analysis and customer appraisal steps can be skipped. For traditional customers who need to borrow additional loans from the bank, the bank can consider and only require customers to provide and supplement new and updated documents, without requiring information and documents already available at the bank. This will help the bank save time and costs, while still ensuring loan quality.

Implementing the lending process well requires bank staff to perform well at each step of the process, because the next step is a continuation of the previous step. Therefore, strictly following the process but being very flexible is an important condition to have the right lending decision, creating the best conditions for customers, while ensuring safety and profitability for the bank, thereby improving the quality of lending.

3.2.4 Improving the quality of resources

Staff is one of the important factors that help improve the competitiveness of the Bank. Therefore, to contribute to improving the quality of the Bank's products and services and creating a friendly image in the hearts of customers, improving the quality of staff is an important and valuable solution in every stage of development of the Cooperative Bank of Vietnam - Bac Ninh Branch, it is necessary to change the sales culture for each Customer Service Officer. To do this, the Cooperative Bank of Vietnam - Bac Ninh Branch needs to focus on the following aspects:

- First of all, regarding professional training : Vietnam Cooperative Bank, Bac Ninh Branch needs to improve the quality of its staff by regularly opening training courses and professional tests. In addition, the Bank must also regularly hold seminars to exchange experiences with Bank staff, and set standards.

Developing personal customer loans at Vietnam Cooperative Bank - Bac Ninh Branch - 10

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