Evaluation of the quality of lending services for farmers at An Hoa transaction office, branch of the Bank for Agriculture and Rural Development, Huong Tra town, Thua Thien Hue province - 6

Model Summary f

(Source: Data processing using SPSS)

general satisfaction. The model fit is relatively high.

- Test the model's suitability Hypothesis H 0 : β 1 = β 2 = β 3 = β 5 = 0 or R 2 =0

(The independent variables do not affect the dependent variable) Hypothesis H 1 : there is at least one value of β i different from 0 or R 2 > 0 (there is at least one independent variable affecting the dependent variable)

To test the suitability of the multiple linear regression model, we use the F value in the following ANOVA analysis table:

Table 2.20: ANOVA analysis

ANOVA

(Source: Data processing using SPSS)

The analysis results in model 5 test F = 62.168 with Sig. =0.000 < 0.05 so reject the hypothesis H 0 . So the variables responsiveness, service capability, empathy, reliability, and tangible all explain the variation in the satisfaction level variable.

-Check for multicollinearity

The results show that the tolerance coefficient is relatively close to 1 and the variance inflation factor VIF is less than 2, so there is no multicollinearity in the model and the variables in the model are accepted.

Table 2.21: Variance magnification factor

Model

(Source: Data processing using SPSS)

Normal distribution residual

Table 2.22: Kolmogorov-Smirnov test

(Source: Data processing using SPSS)

Kolmogorov-Smirnov test for residuals gives sig.= 0.200> 0.05

Therefore, it can be confirmed that the residual is normally distributed.

Check for autocorrelation

Test the hypothesis H 0 : no autocorrelation; H 1 : autocorrelation

Durbin – Watson statistical result (d) = 2.218. Looking at the table, we have d L = 1.378, du = 1.721. Accordingly, d is in the range from d L to du, so we cannot conclude whether there is autocorrelation in this model or not.

-Multiple regression model results

The regression equation showing the relationship between the level of satisfaction with the bank's lending services to farmers is expressed as follows:

SATISFACTION LEVEL = -0.595 + 0.338 SERVICE COMPETENCE + 0.254 EMPATHY + 0.194 TANGIBILITY + 0.184 RESPONSIVENESS + 0.181 RELIABILITY

Table 2.23: Multiple regression results

Model

(Source: Data processing using SPSS)

According to the above model, we see that the level of satisfaction has a linear relationship with the factors Service capacity (β 1 = 0.332) , Empathy (β 2 = 0.301), Tangibility (β 3 = 0.234), Responsiveness (β 4 = 0.212), and Reliability (β 5 = 0.168).

It must also be added that the beta of the factors are all greater than 0, indicating that the independent variables are positively related to Customer Satisfaction . This result confirms that the hypotheses from Ho – H 4 are appropriate. Therefore, banks must make efforts to improve these factors to enhance customer satisfaction.

2.4. Limitations on the quality of lending services for farmers at PDG An Hoa Branch of the Bank for Agriculture and Rural Development, Huong Tra town

-Objectively

* Existing aspects

Besides the achieved results, the bank also has many shortcomings.

at, the following limitations:

Because the bank's main investment sector is rural agriculture, it always faces many risks due to natural disasters, epidemics, unfavorable weather and climate, causing difficulties for production and business activities, people's lives and credit investment.

leading to an increasing trend of bad debt. Lending to cooperative economies is still limited, farm economies are spontaneous, unplanned, and have not determined a specific scale for credit investment.

The global financial crisis and market economy have had a significant impact on banking operations as well as customers' production and business activities.

Capital mobilization is facing many difficulties because nowadays many banks have sprung up with different customer attraction policies, fierce competition and as mentioned at the beginning, the main field is rural agriculture, containing many risks so debt collection is not easy.

* Reason

Agricultural investment contains many risks because it depends on many unpredictable factors such as weather.

The production scale of small households results in slow capital recovery time, affecting the ability to repay loans to banks.

Most households have limited economic potential. Many households have large loan needs but do not have enough equity capital according to the prescribed ratio.

The mortgage is nothing more than the house to live in and the minimum necessary equipment.

Knowledge of market economy is still limited, knowledge of science and technology, experience in livestock production and business is still limited, leading to some households using loans ineffectively. When losing capital, there is no source to repay the debt.

Agricultural extension services have not been highly effective, leading to infeasibility.

of some low investment projects.

-On the subjective side

Although in general, customers are satisfied with the quality of HND loan services of An Hoa Transaction Office, NHNo&PTNT Branch, Huong Tra Town, Thua Thien Hue Province, there are still certain limitations that the bank needs to find ways to overcome to improve its service quality in the coming time, such as:

The first limitation is the group of factors Responsiveness, 3 out of 4 observed variables customers only rated above average, not satisfactory. The characteristic of lending to farmers is that loans are often small but the number of customers coming to borrow is

is very large, so meeting the immediate needs of borrowers is still limited. However, banks should also have measures to increase the ability to meet customers.

The second limitation is service capacity. Although the factors of staff expertise are highly appreciated, the factor of " Information provided to the bank is always timely, complete and easy to understand " is not highly appreciated.

The third limitation is Empathy. Of the 4 observed variables, only 1 variable was rated by customers at a satisfactory level, 3 variables " Bank staff always pay attention to each individual customer; Bank staff clearly understand the needs of customers; Bank staff work at hours convenient for customers " were not really highly rated by customers, only above average. Banks should learn more about the needs, desires, and benefits that customers expect from the bank to increase customer satisfaction.

The fourth limitation is the bank's tangible means, customers only rate these factors above average, which means that the bank has not yet created excitement and attraction for customers when coming to do transactions at the bank. NHNo is one of the banks that was formed quite early in Huong Tra town. Compared to the newly formed banks, the bank's facilities and equipment are somewhat less modern, so it does not create a comfortable feeling for customers when coming to do transactions. Investing in tangible means is always very important in developing current services, at the same time it also shows the level of safety and information security for customers when using the service.

The fifth limitation is customer trust in the bank. Through the survey results, we see that 3 out of 4 observed variables are not highly appreciated by customers, only above average. Trust is a very important factor, especially in today's competitive environment. Therefore, banks need to further promote their strengths to build trust from customers.

CHAPTER 3: SOLUTIONS TO IMPROVE THE QUALITY OF LOAN SERVICES AT PDG AN HOA BRANCH OF AGRICULTURAL AND RURAL DEVELOPMENT BANK

HUONG TRA TOWN .

3.1. Orientation

As a companion of agriculture and rural areas in recent years, the Vietnam Bank for Agriculture and Rural Development with its branches has been a channel for transferring capital to farmers, creating jobs and increasing income for farmers. And to further enhance its role, improve service quality, customer satisfaction as well as improve business efficiency, the bank needs to have basic orientations as the source for providing effective and feasible solutions.

Strengthening financial capacity, improving management and operation capacity, enhancing business autonomy and responsibility to perform well the key and leading role in the agricultural and rural credit system and improve business quality, minimize credit risks, diversify and modernize banking services. HND is the main customer, encouraging the development of farm economy, cooperative economy, prioritizing crops and livestock in the direction of productization, concentrated specialized areas. For traditional handicraft industries, lending is concentrated, with stable domestic and foreign markets.

The analysis results show that the quality of HND loan services at the bank is influenced by the following factors: service capacity, empathy, tangibles, responsiveness, and reliability. All factors have a positive impact on customer satisfaction. Therefore, it is necessary to increase investment and improve the above factors to further enhance the bank's position in the hearts of customers.

3.2. Solutions to improve the quality of lending to farmers

3.2.1. Solutions to improve service capacity

The level of customer evaluation of the service capacity of bank employees is quite high and it has the greatest impact on customer satisfaction. Service capacity plays an important role in the service sector, especially in industries that require high customer contact such as banking. Customers receive banking services through contact with employees and understand the bank better thanks to these people. Therefore, it is necessary to further improve the capacity of bank employees:

- Develop practical professional training courses to improve staff's qualifications in lending services and working techniques in an in-depth manner and to skillfully apply modern technology to practical work.

- Enhance the responsibility of CBTD, link responsibility with benefits, have a clear reward and punishment regime. Pay attention to the treatment policies and benefits of employees so that they are satisfied with their work and help customers be satisfied with banking services. Besides the salary and bonus regime, there are also policies on insurance, health care, and vacations.

- Recruiting highly qualified, dynamic staff

and enthusiasm for work to ensure the most effective work quality.

- CBTD must do ideological work, explain banking regulations to people.

People understand to raise people's awareness in paying debts on time.

- The Bank has measures to support farmers in using capital effectively such as combining agricultural extension, credit consulting for farmers on business knowledge, advanced technology, supporting them in planting, raising animals, and consuming products.

- Regularly paying attention to transaction innovation, polite, civilized and friendly service style of CBTD will retain customers for the bank, enhance the bank's image in the minds of customers.

3.2.2. Solutions to increase bank empathy with customers

Everyone wants others to understand and sympathize with their situation. Listening to customers' opinions, making them feel cared for, respected and showing the bank's concern for customers will be a measure.

very effective in improving customer satisfaction

Banks can let employees attend courses or invite experts to teach about human psychology, helping employees know how to behave in a way that best pleases customers and in difficult situations, know how to resolve them satisfactorily.

When borrowers have any comments, bank staff should listen carefully and filter them to improve the bank's operations.

When lending, credit officers need to pay due attention to the borrower's production and business cycle, creating conditions for the borrower to feel secure in doing business. When overdue debt occurs, it is also necessary to find out the cause of the overdue debt of the people in order to have appropriate handling measures, beneficial to both parties in order to maintain a long-term relationship.

3.2.3. Solutions to enhance visibility for banks

For any business, tangible means are very important. It greatly affects the first impression of customers towards the business. Banks need to invest appropriately in supporting means as well as machinery to serve the bank's activities.

Within its capacity, banks should try to invest in all necessary, modern, eye-catching equipment, and arrange the space in the transaction counter to be spacious, neat, clean, and airy to create a comfortable feeling for customers when coming to the bank.

Building a good bank image in the hearts of customers, unifying

from flyers, logos, slogans, general design of headquarters, interior and exterior decoration of the workplace.

Utilize, improve and perfect existing equipment, while investing in modern equipment to meet the needs of customers quickly and effectively. Factors related to premises and appearance also contribute to creating trust in customers.

3.2.4. Solutions to improve customer response

When customers come to borrow money and the bank's staff responds quickly and clearly explains customers' questions, it will help improve the bank's image and leave a good impression in the borrower's mind.

It is necessary to build a team of dedicated, enthusiastic employees, with solid expertise and knowledge to serve customers.

Most farmers are people with mud on their hands and feet, with low knowledge level, so when explaining questions to them, it is necessary to choose an easy-to-understand explanation, not using too many technical terms. At the same time, documents and forms should be designed simply and the loan process should also be simplified within the allowable range.

Banks need to increase customer care services such as gifts, promotions, and take actions to show concern for each individual customer such as sending flowers and greeting cards on holidays, birthdays or important events of customers.

3.2.5. Reliability solutions

For a bank, reputation is always a top priority. To gain the trust of customers requires a long enough time. Building capital is difficult but to be able to maintain it is even more difficult, just a small mistake can lose the trust of customers and if those customers continue to tell other customers about the problem, it is very dangerous.

To enhance the level of trust, banks need to absolutely secure customer information and transactions. Apply measures to prevent violations of personal information and customer data.

Ensure price competitiveness to attract new customers and retain old customers by: conducting interest rate surveys at several banks in the same area to review your interest rate policy; promoting the flexibility of interest rate policy such as applying preferential interest rates to traditional customers...

- Upgrading the information technology system to enhance the responsiveness and information security level for customers. The development of information technology to diversify products and services and reduce costs must always go hand in hand with enhancing data security and system safety.

- Training a team of professional staff with high professional expertise

create trust in customers.

Build a professional working environment from the inside out, especially for staff who have direct contact with customers such as transaction staff, credit staff, etc. must have solid professional knowledge and good communication skills.