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Evaluation of the effectiveness of capital mobilization at Asia Commercial Joint Stock Bank - Hue Branch - 7


CHAPTER IV: SOME SOLUTIONS TO IMPROVE THE EFFICIENCY OF CAPITAL MOBILIZATION AT ASIA COMMERCIAL JOINT STOCK BANK - HUE BRANCH

4.1. Orientation of the Branch's tasks in the coming time:


4.1.1. Mission orientation 2012 - 2017:

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Evaluation of the effectiveness of capital mobilization at Asia Commercial Joint Stock Bank - Hue Branch - 7

The Asia Commercial Bank's capital strategy project for the period 2012 - 2017 has set the general goal for the Bank's capital mobilization as follows: "Continue to maintain traditional mobilization methods while accelerating the application of new capital mobilization products to diversify mobilization forms. Strive to achieve a high and sustainable growth rate of capital, balanced with the growth rate of credit and other activities, adjust and maintain balance in capital structure, terms, and interest rates to make Asia Commercial Bank develop continuously, becoming a strong bank in Vietnam and in the region".

Thoroughly grasp the business orientation of Asia Commercial Bank. Based on the orientation, objectives, and solutions for business implementation in 2012 - 2017 and the coming years; based on the actual business situation in the operating area, Asia Commercial Bank - Hue Branch has built the orientation and tasks for implementation in the coming time, which is to mobilize increasing both quantity and quality while expanding and improving credit quality to meet the capital needs of customers, specifically as follows:

- Continue to gradually expand the market with the motto of stable and solid development to increase market share, ensure the network is arranged appropriately, spread evenly across the Bank's operating areas to research and apply new forms of capital mobilization to operations to improve capital mobilization efficiency and financial capacity. Implement customer strategy associated with doing a good job of socializing banking activities, creating an equal and mutually beneficial relationship between the Bank and customers; attract people with large and stable idle money through preferential policies of the Branch.


Specific tasks:


- Continue training and professional development programs for all employees to

suitable for the assigned work.


- Survey and consult capital mobilization interest rates and appropriate interest payment methods to develop capital sources, coordinate with relevant departments to ensure effective business capital sources.

- Do a good job of marketing to large customers and traditional customers with balance.

high deposit


- Diversify capital mobilization forms, research new and diverse forms of mobilization, suitable to depositors' tastes and with high competitiveness.

- Promote the strategy of mobilizing deposits with many solutions, consolidate, complete and expand the mobilization network, the form of mobilization products with promotional measures, customer care marketing to maximize the exploitation of deposit sources.

- Along with the capital mobilization strategy is the strategy of using capital in a unified and synchronous manner, expanding and improving the efficiency of credit work, focusing on investing in businesses that operate effectively and have credibility with the Bank.

- Continue to research reasonable and flexible interest rate and service fee policies to attract customers, attractive promotional programs on major holidays. Provide leaflets and advertising publications to bring banking products and services to customers.

- Correct transaction style, customer service attitude, train professional staff, improve professional qualifications and working skills for new products and services to perform customer consulting well.


4.1.2. Branch plan for 2012:


On March 30, 2012, ACB Bank successfully held the 2012 Shareholders' Meeting at Hoa Binh Theater. At the meeting, ACB's Shareholders' Meeting approved all issues with a rate of over 99%, and unanimously approved ACB's 2012 operating plan. ACB Group's 2012 business plan sets the target of increasing total assets to VND379,376 billion; total mobilized capital to VND259,892 billion; total outstanding loans to VND259,892 billion.

120,287 billion VND; bad debt ratio from group 2 and above at 2%, debt from group 3 and above not exceeding 1%; pre-tax profit reaching 5,500 billion VND; developing 66 new branches and transaction offices nationwide and preparing for the expansion of ACB's scope of operations outside of Vietnam. The expected profit level used to pay dividends to shareholders in 2012 is 3,300 billion VND (equivalent to 2,660 VND/share).

In the 2012 plan approved by the General Meeting of Shareholders, ACB will increase its charter capital by 3,000 billion VND. The increase in charter capital will help ACB fully meet the safety requirements prescribed by law, purchase additional fixed assets (to serve the purpose of network development, invest in information technology systems to serve growth and management, purchase and build offices, purchase new offices, office equipment and other assets to ensure treasury safety); invest in capital contribution and purchase shares for the purpose of network development, investment growth, capital accumulation and profit growth; improve capacity and ensure operational safety.

With the ACB Group's 2012 operating plan like that, ACB Bank

– Hue Branch also set out its own operating plan for the Branch in 2012 with some key targets as follows:

- Self-mobilized capital by the end of 2012 reached 1,300 billion VND, of which:


+ Capital mobilized from individuals reached 900 billion VND.


+ Capital mobilized from private customers reached 200 billion VND.


+ Capital mobilized from corporate customers reached 200 billion VND.


- Profit increased by 10 - 15% compared to 2011.


- Open more ACB transaction points on main roads and in the inner city of Hue City.


4.2. Some solutions to improve the efficiency of capital mobilization at branches:


In practice as well as in theory, it has been proven that mobilized capital is the pillar in the business activities of commercial banks. Organizing mobilized capital well will create favorable conditions for the purpose of maximizing the Bank's profits. Moreover, the competition between commercial banks, domestic credit institutions and joint venture banks is fierce. Therefore, it requires banks to come up with a reasonable capital mobilization strategy. To contribute to improving the efficiency of capital mobilization, banks need to implement the following specific measures:


4.2.1. Strengthen Marketing activities:


Through collecting customer opinions, the majority know ACB through the introduction of relatives, friends or through outdoor advertising boards hung at ACB transaction points. Information on interest rates, promotional programs, etc. are photocopied on A4 paper and posted on the board in a sketchy manner, difficult to follow and lacking in customer attraction. Promotional programs such as savings for prizes, swiping loyalty cards to redeem gifts, etc. have not attracted many customers because customers only know the specific details of the above programs when they come to transact at the Bank through the consultation of transaction officers. That has limited the ability to attract new customers as well as customers of competitors.

ACB Bank's products and services are currently quite diverse, with many new products and services such as Western Union international money transfer, ACB online, MasterCard inControl smart spending management service, account inquiries via phone, etc. Information about the above mentioned convenient products and services are introduced through flyers placed on tables at transaction counters. However, few customers pay attention to them or take them to follow up, so customers' ability to grasp information sources is very limited.


Based on the above reality, in the coming time, the Branch needs to pay attention to

and invest more in Marketing by:


- When implementing promotional programs, new products and services, it is necessary to organize seminars and disseminate information so that employees in the Branch can clearly understand the implementation process. It is necessary to develop a specific program of activities, assign tasks to each department and individual to bring about the highest efficiency.

- Advertise information about ACB Bank, information about interest rates, about services

Special promotions and convenient products of the Bank through:


+ TV channels, Bank websites.


+ Use word-of-mouth marketing, that is, through the Bank's current customers, asking them to introduce to friends and relatives the advantages of service style, useful products and special benefits when transacting at the Branch. This is a new way that many businesses are applying today, because many customers choose products and services due to the introduction of relatives, they feel more secure and confident because their relatives have had the experience and are satisfied.

+ When launching new products and services or attractive promotions such as savings, loyalty cards, etc., it is necessary to hang banners and large posters to attract customers' attention.

- Periodically organize surveys to collect customer opinions, in order to adjust operations.

Branch's activities to serve customers better.


- Arrange staff to specialize in customer consulting, help customers complete necessary procedures, answer customer questions, and hand customers the Bank's advertising leaflets. Through this method, customers do not have to worry about complicated procedures when depositing money, and at the same time, information about ACB Bank's new products will be more easily grasped by customers.


- Annually summarize and draw lessons from marketing and customer service, promote strengths, limit weaknesses, refer to experiences of other banks in the area, pay attention to the movements of businesses and competitors to implement marketing policies suitable to the characteristics and scale of the bank.

- Build and strengthen relationships with social organizations and schools in the area, participate in charity activities, sponsor some major local activities, thereby building the image and reputation of CN in the area of ​​operation.

Strengthening marketing activities will help ACB's new products and services really enter people's lives. Customers will have a clear understanding of new products and services, and know the practical benefits that these products and services bring. As for the Branch, it will increase its mobilized capital as well as its income from providing deposit products and services.


4.2.2. Improve service quality:


Nowadays, to attract customers, competition with interest rates and promotional programs is considered a tool used by banks. However, under the control and ceiling interest rate set by the State Bank, the current interest rates of banks do not have a big difference. With the same interest rate, customers will choose the bank with better service quality, so improving the quality of banking services is a matter of concern. Service quality includes factors such as service capacity, products, tangible means, etc. Improving service quality to better serve all types of customers helps the branch retain old customers and attract more new customers because if customers are satisfied, they often recommend them to their friends and relatives.

Currently, ACB transaction points in Hue City are still using rented premises, the transaction room area is still too small. Sometimes the large number of customers causes inconvenience to both customers and employees. The Bank's equipment has not been invested in a modern direction such as automatic doors, computers in the process of


The operation process sometimes still has network congestion, there is a shortage of printers, broken electronic bulletin boards and poor quality of operation, leading to customers having to wait for a long time. The Bank's ATMs often have problems, making it impossible for customers to make transactions. At busy times, because they are too busy, the transaction officers do not show enthusiasm, friendliness, etc.

In order to attract new customers and retain old customers to deposit money at ACB Bank Branch, in the coming time, the Branch also needs to pay more attention to improving service quality. Based on the theory of the need to improve service quality and considering the current situation of the Bank's operations, I would like to propose the following solutions:

- Troubleshoot problems on ATMs, instruct customers on how to use the card and some utilities that can be performed right on the machine such as balance inquiry, account number viewing, etc. so that customers do not have to waste time going to the bank to ask the staff to check.

- Repair electronic interest rate signs for customers to easily follow, arrange more seats for customers while waiting for transactions.

- Having network solutions, upgrading software programs, establishing internal information systems, completing synchronization to serve business, improving accuracy to help direct and operate the Bank's operations in the best way. Applying technology to the Bank helps the Bank to be able to provide customers with the most effective and economical products and services.

- Innovation in trading style:


+ Bank employees are the ones who directly contact with customers. Therefore, the civilized banking, the first impressions of the bank will be shown through the style and service attitude of the bank employees towards customers. It is necessary to maintain a gentle and respectful attitude towards customers, enthusiastically answering all customer questions within the scope of expertise and understanding. Simple gestures such as smiling to welcome customers, suggesting


Showing customers sympathy while they wait and saying thank you when they leave will make them feel respected and leave a good impression.

+ Correct errors and accurately process all transactions to build customer trust.


+ Widely promote new products and services so that customers have more choices.


Improving service quality is an issue that many banks are concerned about today. Applying this solution will create a good impression of the branch for customers, increasing the level of satisfaction and satisfaction for customers. When customers feel satisfied, it is natural that they will continue to come to transact and introduce to friends and relatives. Thanks to that, the branch will maintain the number of old customers and attract many new customers.

4.2.3. Expanding the mobilization network:


The operating network is a factor that affects the capital mobilization capacity of commercial banks. The more capital mobilization points, the more convenient it is for customers in different areas, and at the same time, it helps the Bank to cover the market and penetrate new markets. Currently, the Branch has three mobilization points in Hue City. This number is too small, causing difficulties for customers who are far from the city center or in the inner city. Through a survey of 100 customers, 29 customers were not very satisfied with ACB transaction locations. The narrow mobilization network is a factor that affects the Branch's ability to attract customers.

In the coming time, the Branch should research and find suitable locations to open some new transaction points in Hue City and towns far from the city center. At the same time, when opening new transaction points, it is also necessary to focus on marketing so that customers know about this new transaction point.

Expanding the network will facilitate many customers. As for the Branch itself, it will help increase market penetration, attract more potential customers, thereby increasing mobilized capital.


4.2.4. Expanding the form of opening personal accounts:


In addition to focusing on measures to increase savings deposits, the Branch also needs to make efforts to increase capital sources through deposits from individuals and organizations through opening accounts. This form helps the Bank attract idle capital with low interest rates. At the same time, developing personal accounts contributes to modernizing the payment process through the Bank, reducing the rate of cash in circulation, saving on circulation costs. Opening accounts and issuing ATM cards have become popular in the area, this is a service known and used by many customers.

Branches should expand the opening of personal accounts and issuance of ATM cards, advertise and introduce the benefits that using ATM cards brings to local people. Contact schools to make free cards for students. Contact businesses to open accounts for salary payments via cards, etc.

The expansion of personal account opening not only facilitates customers but also helps the Branch attract abundant capital at low cost.


4.2.5. Building customer policy:


Nowadays, competition in attracting customers is increasing among banks. The biggest risk will occur if you do not actively find ways to attract customers to your side. Therefore, determining a customer policy is a necessary and urgent issue.

- Building a customer policy in which employees must be carefully instructed on how to serve customers well. First of all, employees must be aware of the real needs of customers when depositing money in the Bank. Then, bank employees must understand the process, understand the profession, and serve customers wholeheartedly and thoughtfully. Communication is also an important issue today.

- There are preferential policies for customers who deposit large amounts of money,

Customers who come to deposit money regularly, such as: promotional gifts, proactive


Contact to notify new information about interest rate changes, new products and services, attractive promotions about to be applied, etc. Priority in withdrawing money, reviewing loan applications.

- Regularly organize customer conferences with traditional customers so that customers can express their wishes and comments to the Branch's Board of Directors. This is also an opportunity for the Branch to express gratitude to customers who have trusted and come to transact at the Branch in the past time.

- Establish relationships with customers, by sending congratulatory flowers on holidays, organizing visits to customers who regularly send large amounts of money during holidays.

- Have a customer mailbox or periodically conduct customer opinion surveys and record their comments so that the Branch can promptly adjust its operations to better serve customers.

Building a customer policy contributes to unifying the operating principles throughout the Branch. Building a clear policy so that customers can see their practical benefits is a condition to retain old customers and attract new customers.


4.2.6. Improve professional qualifications for Bank employees and innovate management style:

To meet the requirements of modernizing the Bank, catching up with new banking technology, and expanding capital mobilization, the Bank needs to pay more attention to improving the qualifications of staff and management work in the Bank.

- Regularly open training courses to improve professional qualifications for staff, especially key staff. In addition, the Bank should have a policy to motivate and encourage its employees to improve their professional qualifications by providing material and spiritual support, creating favorable conditions for employees to find new jobs.


understand, research and study. Thereby creating conditions for Bank employees to learn experience to apply appropriately in practice.

- Having professional qualifications is not enough, in banking activities, the service attitude of employees is the image of the Bank in the eyes of customers. Therefore, right from the recruitment stage to the training and management stages, the Branch needs to pay attention to selecting and screening so that the Bank has a team of employees with polite style, enthusiasm, steadfast in ideology, ethics, lifestyle and good professional expertise.

- In management, the Branch needs to have a clear reward and punishment system. For employees who often quit or are complained about by customers about their communication attitude, the Bank must handle them according to the correct system: salary deduction, warning, discipline, dismissal, etc. At the same time, for employees with good performance in work, good compliance with regulations, and special contributions, the Branch needs to have a timely reward system, commensurate with their contributions. The reward and competition system must be implemented fairly for all employees, without bias or prejudice. Good implementation will create motivation for Branch employees to work well and exceed business targets.

- Perfecting the organizational model, arranging and arranging human resources reasonably, the bank needs to

Put capable employees in key positions, hold key positions.


- Along with the above activities, the Branch should focus on group activities to create a comfortable atmosphere after work for employees. The Bank can organize competitions for the Branch's best employees for all employees, sports competitions... to encourage and motivate them.

The Branch's performance depends on the efforts of its staff. Therefore, enhancing professional training for staff so that the Branch has a team of staff who are good at professional expertise and attentive to customers is the basis for bringing good business results to the Branch in the future.


4.2.7. Analysis of capital size and structure:


The optimal scale and structure of capital sources is one of the important bases to ensure the safety and profitability goals of the Branch. Currently, the capital structure of the Branch still has some problems such as: the proportion of self-mobilized capital to total capital sources is tending to decrease. Considering the structure of self-mobilized capital sources classified by term, short-term mobilized capital accounts for a much higher proportion than medium and long-term capital sources, while the demand for medium and long-term loans is tending to increase. Therefore, considering the scale and structure of capital sources to develop a suitable capital mobilization plan is necessary.

- The first measure that the Bank can take is to always make detailed assessments and analyze the capital structure and proportions, etc. to find out the difficulties and problems arising from the Bank or the depositors. At the same time, the Bank must proactively build a balance of capital needs. On that basis, the Bank establishes a long-term strategy for capital mobilization in order to have appropriate capital mobilization measures.

- It is necessary to further link capital mobilization and capital use. This does not mean that there is only a compatibility in terms of capital mobilization and capital use, but requires the Bank to be flexible in each specific case.

Analyzing the scale and structure of capital sources is an effective solution to help branches have a scientific and systematic approach to capital sources, which is the basis for ACB Bank to develop appropriate capital mobilization policies.

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