Development Orientation of NHBL Services of Joint Stock Commercial Bank for Industry and Trade

effective for the transaction processing operations of the Central Bank. Standardize human resources, enhance training to improve the qualifications of staff; Improve the labor use mechanism and salary payment mechanism; Build a team of competent and professional staff.

3.1.2 Development orientation of NHBL services of Joint Stock Commercial Bank for Industry and Trade

Vietnam Trade

The Board of Directors of NHCT advocates continuing to strongly develop banking services, especially retail banking services. To achieve this, NHCT has set specific goals:

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Assets and Capital: Continue to increase asset size; continue to accelerate the equitization roadmap to increase equity capital, ensuring to meet growth and development needs in the coming time, especially to ensure capital safety ratio; diversify ownership structure according to the principle of State ownership of 51% or more.

Credit and Investment: Credit is the main business activity, competing according to market principles; adjusting the credit structure reasonably, in line with VietinBank's strengths, increasing the proportion of retail credit, personal and household loans in the total outstanding loans in the economy; increasing credit risk, ensuring bad debt is below 3%; diversifying credit investment activities in the financial market, playing a guiding role in the market, improving the efficiency of capital use and liquidity management of the bank.

Service development: Diversify fee-based banking services, identify key service groups to focus on development; develop services based on modern technology platforms, taking customer satisfaction as the development orientation.

Perfecting the organizational structure and developing human resources: Standardizing human resources, enhancing training to improve the capacity and qualifications of staff; innovating and perfecting the labor use mechanism and salary payment mechanism; building a team of competent and professional staff; thoroughly implementing labor regulations and corporate culture.

Innovate and develop modern technology systems: Consider the application of information technology as a key factor, supporting all business development activities; Build a synchronous, modern, safe information technology system with high unity - integration - stability.

Improve the quality of governance and risk management: Operate the organizational apparatus with a clear and reasonable hierarchy; Develop and establish new subsidiaries in the direction of providing full range of financial services to the market; Expand the business network, establish new branches, strongly develop the network of transaction offices; Strongly develop the NHBL system.

3.2 Solutions for developing NHBL services at Vietnam Joint Stock Commercial Bank for Industry and Trade

The reality shows that the NHBL service at Vietnamese commercial banks in general and at the Central Bank in particular is still underdeveloped compared to the world average and the development of these products still has things to consider. Although the importance of this service sector has been recognized and certain changes have been made, there is still a lack of specific, fast and effective solutions to develop NHBL services. This is something that must be done immediately if we do not want to lose market share to foreign banks with many years of experience in retail that are increasingly penetrating the domestic market.

NHCT is one of the large commercial banks, which is transforming its operating model, in which it focuses on modern retail business. The author boldly proposes some solutions to develop retail banking services at NHCT, specifically:

First: Develop retail products and services

One of the remaining problems in the development of NHBL services of NHCT is that the products are not really diverse, still heavily traditional, not creating a complete difference and not being highly competitive compared to other commercial banks. The necessary solution at this time is to research and develop NHBL services to diversify, enhance product utility, and serve many customer groups.

Developing a portfolio of NHBL products and services needs to be based on research on target customers (age, income, consumption habits, etc.); products of competitors and political-economic-social factors (inflation rate, interest rates, regulations on fees, interest rates, etc.)

- Research and develop new, proactive products to meet the needs of target customer groups, promoting the expansion of the customer base. It is necessary to focus on products with high technology content, with outstanding features compared to products on the market to create a difference in competition. The process of providing banking products and services must be simple, convenient, shortening transaction time for customers but still ensuring product and service quality as well as safety and efficiency in banking operations.

- Implement specific instructions and coordinate with member units in the process of implementing the contents of comprehensive cooperation agreements with corporations and general companies to enhance the cooperation capacity of branches with member units, creating favorable conditions for work.

Marketing and cross-selling products. Assigning focal branches, focusing on implementing comprehensive cooperation with businesses. Avoiding competition between NHCT branches, causing damage to NHCT and being offensive and inconsistent in the eyes of customers using products and services.

- Widely deploy electronic payment services and electronic, automatic transaction systems. Promote investment and research, widely apply new payment tools according to international standards, including electronic money, domestic payment cards, international payment cards, multi-function cards, smart cards and checks. At the same time, it is also necessary to expand and diversify the utilities that come with card use for customers such as: providing overdraft limits, money transfers, payment of all kinds of bills through cooperation with service providers, and savings deposits.

- Develop computer banking, telephone banking and home banking to take advantage of the development of personal computers and internet connectivity. In particular, it is necessary to soon introduce new services so that customers can place orders, make payments, check balances and receive information about commitments between banks and customers.

- Cross-selling products based on packaging and selling associated products to diversify the product portfolio on the one hand and increase service revenue for the bank on the other hand. Research the needs and characteristics of each customer group to then offer product packages that integrate many of the available banking services of NHCT or can enhance utilities to increase the attractiveness of each product package. Take advantage of the activities of subsidiaries to provide associated financial products and services to customers.

Second: diversify distribution channels.

Currently, compared to domestic banks, NHCT has a distinct advantage in terms of branch network and transaction offices. Therefore, the first thing

In the process of developing the branch network and distribution channels of the current NHCT, it is necessary to re-evaluate the operational efficiency of branches, transaction points, traditional distribution channels and electronic distribution channels. Combined with the orientation of market segments, customer segments to make decisions on choosing locations, scale, quantity, and forms of placing branches or transaction offices. In addition, for ineffective transaction offices, it is necessary to transfer to other locations to be able to promote the role of each distribution channel, to best meet the transaction needs of customers.

In addition to opening level I and level II branches, it is necessary to focus on developing the scope of operations by opening satellite transaction offices with a compact scale. Strengthen distribution channels through agents such as: remittance payment agents, ATM card issuance agents, payment agents. For remittance transfer services, coordinate with people's credit funds to open remittance payment agents, attracting more customers to open accounts. Cooperate with insurance companies, car dealers, supermarket systems, entertainment areas, tourist attractions... so that the employees of these companies themselves are product distributors for the State Bank.

Research and further develop electronic distribution channels: Expand the area of operation by installing more ATMs, POS or

transaction intent of existing ATMs, speeding up the information transmission speed within the bank and between NHCT and other banks. Along with the expansion of electronic distribution channels, NHCT focuses on risk management and enhancing customer information security.

In addition to traditional direct distribution channels and electronic distribution channels, it is necessary to strengthen indirect distribution channels such as implementing customer strategy. Thus, in addition to tangible distribution channels, NHCT can expand the scope of the bank's operations through an invisible but extremely effective and cost-saving distribution channel.

Third: Improve management and human resource development capacity.

Human resource development:

Humans always play a leading role, the key to all problems. Therefore, to be successful in the NHBL activities at NHCT, human resource development solutions must always be respected and implemented synchronously. The content of human resource development at NHCT must cover the processes from recruitment, training, human resource allocation to evaluation and reward.

Build a system of separate criteria for staff of each department. Each department and service sector requires bank staff not only specialized knowledge but also specific skills and personality traits. There are regular annual specific training programs for each different level of staff from management to operations such as management internships at foreign banks for a certain period of time for leaders to plan, creating conditions for staff to participate in training courses to improve qualifications, specialized knowledge, communication skills, customer consulting, etc.

Cross-rotate staff from operational units and policy implementation units to enhance practical experience, thereby creating new products and services that are close to customer needs. Second staff from the head office to support branches in cases where

certain.

Linking training results with the arrangement of staff for the right person, the right job, rotating staff to arrange work that best suits their professional capacity, promoting the creativity of bank staff. It is necessary to regularly evaluate the capacity and score the work completion of bank staff so that work efficiency can be maximized. In addition, professional or skill competitions should be organized annually for staff of each department to evaluate and motivate staff to continuously improve their professional qualifications and work skills.

In addition, we should also pay attention to rewards, apply attractive, appropriate, accurate and right salary regimes to motivate employees to work enthusiastically, maintain a team of loyal, dedicated and especially high-quality employees.

Investing in young talents and providing scholarships to excellent students currently being trained in major universities specializing in finance and banking is a good choice to prepare a source of future human resources.

Strengthening solutions to motivate workers

Build mechanisms and create motivation in the process of deploying new products and developing services. Salary and bonus regimes are linked to work efficiency:

- Business bonus mechanism for branches and transaction offices of savings funds;

- Bonus mechanism for sales staff;

- Emulation programs are expanded throughout the system and at branches;

- Appointment mechanism, job arrangement suitable for capable people.

Fourth: Upgrade and innovate technology infrastructure.

A characteristic of NHBL services is that they must be based on a high-tech platform. Therefore, in order to promote NHBL activities in the coming time, NHCT in particular and banks in general need to have a modern, fast-speed technology platform that ensures the safety of the system during operation to promptly meet all customer requirements anytime, anywhere.

To develop a modern technology platform, NHCT must have a comprehensive strategy, from investment - design - technical upgrade to software development, training staff capable of applying and exploiting the system to bring the highest efficiency to the bank. Specific solutions need to be implemented as follows:

- Continue to edit and improve the existing equipment system, ensuring that the machines operate well, without damage, data loss, or transmission problems during operation, meeting the needs of customers as well as the staff working in the bank.

- Strengthen the application of advanced technology in accordance with the development level of the Vietnamese banking system and comply with international principles, develop online transaction systems and gradually expand the one-stop transaction model. Applying technology helps modernize and automate business operations, increasing the utility of products.

- Apply new management software suitable for the operations of NHBL. At the same time, it is necessary to focus on training and improving the capacity of staff so that they can operate electronic devices proficiently, research and exploit, and make maximum use of the features of modern equipment and technology to improve the quality and efficiency of all aspects of operations, thereby creating new software products with high applicability in NHBL operations.

Thursday: Solutions to promote marketing activities.

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