Experience of some countries in applying information technology to develop retail banking activities and lessons for Vietnam Joint Stock Commercial Bank for Industry and Trade

3.2.7. Accelerate the implementation of the overall IT strategy plan, especially the Corebanking system replacement project.

Deploy on schedule the EDW data warehouse project as a unified data platform to provide accurate customer information, management reporting information, fast retrieval, and security. Deploy the integration of all service products connected to the SOA middleware infrastructure, standardize connection services, and easily deploy new products and services. Continue to upgrade the IT infrastructure system to develop new product and service utilities to attract customers to use the service, increase competitiveness. Perform well the management and safe operation of the IT system, ensure the system operates continuously and smoothly, and ensure the quality of reliable information to serve the management and operation decision making.

3.2.8. Enhance VietinBank brand value through activities

communication, marketing, brand development:

Develop service strategies for product and service promotion programs and major events to increase business efficiency and enhance brand reputation. In particular, increase support for the development of retail banking services on online information channels, social networks and other interactive media. Implement communication programs to celebrate the 25th anniversary of the development of the Vietnam Joint Stock Commercial Bank for Industry and Trade, contributing to making the VietinBank brand image deeply and long-lasting in the public .

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3.3. IT application solutions in retail activities for VietinBank:

3.3.1. First solution: Modernize banking technology:

To achieve the above objectives, Vietin Bank actively implements an overall strategy on Information Technology. In particular, the Corebanking replacement project was officially launched in December 2012, expected to be a comprehensive and integrated technology solution, allowing VietinBank to flexibly meet customer needs, expand its scale of operations, and meet VietinBank's long-term development strategy. To achieve this result, it is necessary to:

One is: Modernizing the Core Banking system and developing banking applications. In particular, developing information technology applications in retail products and services, banking operations to create new products that are innovative, have high technology content and are competitive in the market. Products and services must meet the diverse needs of individual customers according to each customer segment.

Second: Effectively organize and implement projects to renovate and upgrade VietinBank's technical system, perfect the safe and highly accurate payment system at a reasonable cost to strongly develop electronic payment services through the bank. On the basis of building and perfecting the interbank electronic payment system, card payment system, international money transfer system and other payment systems to ensure modernity, safety, reliability and efficiency, in accordance with international practices and standards. Focus on applying e-commerce in banking business and retail banking activities.

Third: Ensure synchronization in investment and use of information technology systems of banks. Strengthen modernization and promote the application of information technology in payment work on a modern information technology platform, towards automation and increasing the speed of processing transactions, ensuring easy connection and interface with other application systems. Payment processing technology applications with very large transaction volumes, increasingly diverse customer requirements, and increasing number of retail products require the Bank for Industry and Trade to apply new synchronous technology to meet customer requirements. Strengthen linkage and cooperation in research and development of new banking products and services, technology transfer, provision of electronic banking services, automatic banking, and payment cards to meet customer and market needs.

Fourth: Expanding electronic banking applications, choosing to deploy an automatic banking service provision system: equipping a system of machinery and equipment to automate payment work, equipping additional card readers, multi-function ATMs, online transmission networks from the extension system to the payment center of the bank.

banks, payment networks with other commercial banks, with state banks... and equipment serving the automation of operations and management in banks.

* Evaluate the effectiveness of the proposed solution:

Modernizing banking technology will contribute to the development of retail activities and further enhance the competitiveness of the Vietnamese commercial banking system, ensuring the diversification and multi-functionality of products and services, improving customer service quality, reducing labor costs, managing risks well, enhancing marketing, managing customer information, increasing competitiveness and serving management requirements well.

3.3.2. Second solution: Diversify products and services, develop modern and convenient e-banking services:

In current conditions, to implement this solution, VietinBank needs to carry out the following two main issues:

3.2.2.1 Diversify traditional retail banking products and services

system:

a. Savings deposits: VietinBank needs to promote capital mobilization through savings accounts.

Savings, individual customers are the subjects that bring long-term capital to customers, accounting for 30% to 45% of total mobilized capital. Therefore, it is necessary to diversify products on the basis of improving technology content, creating flexibility and convenience for customers to attract capital from individual customers. Enhance competitiveness, mobilize capital mainly based on quality, convenience, technology, service efficiency, reputation and reliability of the bank instead of the form of competition mainly based on interest rates, dominant scale advantages or monopoly in service provision.

b. Personal loans: Vietinbank needs to research market demand and market segments, thereby offering a diverse product system suitable for each customer segment, aiming to form a more open personal credit market, healthy competition, and equality with other banks, creating opportunities for all individual customers who need to borrow capital, do business legally and have enough conditions to repay the debt.

for banks. In addition, banks need to cooperate with partners and third parties to develop associated credit products, focusing on products such as: installment loans for real estate purchases, installment loans for car purchases, regular unsecured loans, consumer loans, overdraft loans for payment deposit accounts, advance payment services for securities sales, loans for Vietnamese workers working abroad, credit cards, etc.

c. Developing cashless payment products and services :

Developing these products will help save costs for society, create a basis for developing payment services through banks, and improve the efficiency of capital use in the economy. With the increasing population, payment transactions and payment volume, the increase in the supply of non-cash products and services of VietinBank is extremely necessary.

d. Remittance services :

VietinBank needs to have policies to exploit and create favorable conditions for developing remittance services through the banking system and have effective measures to attract remittances through banks such as: organizing propaganda and advertising programs on remittance services and international money transfers, establishing direct remittance channels with correspondent banks in countries, linking with money transfer companies around the world, expanding remittance payment points and forms...

3.2.2.2. Developing modern and convenient e-banking services:

Electronic banking products and services include products and services provided to customers through electronic and digital means such as ATM, POS, KIOS, Phone, Mobile, SMS, and Internet channels.

Developing e-banking transaction activities to a certain extent, in accordance with the actual situation, the level of economic development, and customer needs will serve VietinBank's customers (traditional customers), while attracting new customers using the same utilities and information effects about the service from traditional customers.

a. Developing electronic banking services SMS Banking, Internet Banking

This is an inevitable trend in retail banking activities. For customers, e-banking services help customers access banking products and services anytime, anywhere, manage capital effectively, proactively and promptly process payment transactions, save time and costs... For VietinBank, e-banking services help the bank expand and attract customers, from being limited to a region to other regions in the country, from a certain country or territory to the whole world, minimizing sales costs, rental costs, and labor costs.

SMS Banking Service : VietinBank must cooperate with telecommunications companies to widely provide this service to customers. At the same time, it is necessary to research and invest in technology to provide payment services to customers such as Top up service, bill payment, credit card statement payment, money transfer, etc.

Internet Banking: VietinBank needs to develop an application software program that is capable of managing and controlling information, and is capable of storing, storing and checking information when needed, provided on the bank's website so that customers can conduct transactions with the bank via the Internet. In addition, it is necessary to develop and issue terms and conditions for the use of Internet Banking services to bind the rights and responsibilities of customers and the bank.

b. Actively apply electronic payment transactions via the Internet

- Monthly payment and prepaid purchase payment : In the form of monthly payment, VietinBank can provide customers with monthly invoices to pay for products purchased online. Customers who have registered to use the service can go to the purchase page and make transactions. Every month, the bank pays by customer's credit card and the seller receives the payment. This form of payment is very suitable for small payments and the method of paying for each use of goods.

Prepaid purchases allow parents to set up an account for their children to make purchases. Parents fund the account using a credit card number, by check or by money order. They can also extend the account as long as their children have access to a location they can visit. These electronic banking services help VietinBank to be present everywhere, including abroad, without additional investment from customers; significantly reduce cash flow; allow the circulation of electronic cash; reduce the number of tellers to other tasks; allow for deep penetration into niche markets (specialized cards).

- Electronic check (e-check) : is a form of paper check in which the buyer must deposit a sum of money into the seller's deposit account and any standard check must go through this process. Like a paper check, an electronic check can be returned when there is not enough money in the fund to pay, leading to an overdrawn case regardless of whether the check is in cash or a paper check. If the money in the buyer's deposit account is no longer available to pay by e-check, the seller must go through the required steps to pay again by standard check. The customer may have to pay the overdrawn amount at the bank and a penalty. However, usually e-checks do not require anything other than a deposit account. This is a great payment method for B2B (business to business) transactions.

- Developing ATM and KIOS systems: Currently, ATMs are mainly used for withdrawing money and making simple payments. VietinBank needs to research and deploy ATMs that can be used for deposits, multi-function payments, provide dozens of different services and can replace a bank branch. In addition, the bank needs to soon deploy a KIOS system - considered as a bank officer for customers to make non-cash transactions with an initial cost much lower than an ATM.

- Developing Internet banking: Vietnam Joint Stock Commercial Bank for Industry and Trade needs to soon offer services that customers can use such as placing orders, making payments, asking for information... based on trends and popularization capabilities.

personal computer access, Internet connectivity. This is an effective distribution channel, increasing safety and saving costs for both banks and customers.

- Developing mobile banking : with the current trend of mobile subscribers exploding in the domestic market, this is an effective and potential distribution channel that Vietnam Joint Stock Commercial Bank for Industry and Trade should focus on exploiting.

- Develop a network of card acceptance units.

VietinBank needs to have strategies and specific plans to develop card acceptance units (POS), promote the benefits of accepting card payments to card acceptance establishments and cardholders. In addition, it is necessary to strengthen close cooperation with agencies, businesses, organizations providing services, consumer goods and public goods in providing and using electronic services.

c. Strengthen brand promotion and customer care activities

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Because the service objects of retail banking activities are mostly individuals.

Individuals and households have very different needs and conditions, so marketing and promoting retail banking products and services play an extremely important role. However, for a long time, Vietnamese commercial banks have not focused on investing and developing marketing activities, banking products and services have not been widely promoted to all people. Therefore, VietinBank needs to have the following dynamic marketing strategies and solutions :

- Building customer strategy and implementing customer segmentation : it is necessary to apply modern technology to build a complete, accurate, and updated customer information management system to determine the market structure and target customers, thereby developing suitable retail banking products and services for all customer groups.

- Brand development : Banks need to build their own brand identity standards, ensuring consistent criteria from architecture to logo and impressive colors for partners and customers.

- Promote your brand on various channels :

VietinBank needs to promote its image and brand, introduce retail banking products and services through various forms of advertising such as: online advertising, leaflets, advertising on ATM screens, audio-visual equipment, sponsorship programs on TV, Radio and other media; Participate in large seminars, fairs, exhibitions, update new information on VietinBank's website...

In addition to solutions to market products and services to customers, to retain loyal customers as well as attract new customers, VietinBank needs to create a difference in the services provided. The most important thing to do is to build and complete a customer service center, creating an interactive interface between banks and their customers 24/7, to best meet the increasingly diverse needs of customers. The customer service centers will support customers easily, save costs, receive and answer questions and complaints from customers, support and handle customer requests during the service usage process.

Vietnam Joint Stock Commercial Bank for Industry and Trade needs to invest in building a customer relationship management (CRM) system integrated with existing application systems and service distribution channels. Customer information is centralized into a database, from which different distribution channels can access accurate, complete and updated customer information. This is the basis for Vietnam Joint Stock Commercial Bank for Industry and Trade to segment customers, design appropriate products, sell retail banking products and services and manage service quality.

d. Completing and upgrading the risk management system for retail banking operations

Risk management plays an increasingly important role in the effective and safe development of Vietnamese commercial banks in general and Vietnam Joint Stock Commercial Bank for Industry and Trade in particular. Retail banking activities have potential risks that affect the operational efficiency of commercial banks. To prevent and limit risks, VietinBank needs to prevent and manage risks in a systematic manner.

Experience of some countries in applying information technology to develop retail banking activities and lessons for Vietnam Joint Stock Commercial Bank for Industry and Trade - 12

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