stability for banks, is a part of the rapid growth trend of banks in the world in recent years. Practical experience of banks in the region and in the world shows that developing banking activities towards special customers and individual customer service activities is an inevitable trend, because it ensures more effective risk management, better services are provided to customers, business activities, and service markets will have clear orientations to help banks achieve optimal business efficiency.
Fourth : The development of DVPTD activities contributes to expanding the scale and network, increasing the brand of banks in the market: Changes in the banking industry in recent times have shown that the activities of DVPTD are the driving force for banks to develop distribution channels and expand their networks. Traditional sales channels such as branches and transaction offices are increasingly developing in parallel with the increase of modern channels such as ATM, POS, KIOS networks... The networks of some banks are not only within a country but also strongly developing to other countries, typically banks in the US and UK. The development of the network contributes to increasing the image and brand of banks in the public's mind.
2.2.3.3. For bank customers First: Cost savings
The development of services is closely linked to the technology factor, the banking transactions are increasingly automated, the banking activities follow certain standards, so the number of employees can be reduced, the efficiency achieved per unit of time increases, there are no costs spent on work that does not bring business efficiency. In addition, with new machinery and equipment, modern technology also reduces the banking costs... All of the above factors have greatly contributed to reducing the banking costs, thereby customers are satisfied with the service at the lowest cost.
Second : Save time
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Banking transactions are conducted quickly and accurately, saving customers very little time when they want to make a transaction.
This brings convenience to customers whether they are individuals or businesses. In today's society, saving time is something that customers are very interested in because customers do not feel like they have to wait.
2.2.4. Factors affecting the development of DVPTD at commercial banks
2.2.4.1. Internal factors of the bank
First: Structure and organization of non-credit service development apparatus
Building an organizational structure for the development of non-credit services has the effect of allocating resources reasonably to each specific job, thereby saving resources and input costs. On the other hand, the organizational structure has the function of determining the responsibilities and ways to express the role of each member according to the regulations of the job description, organizational chart and the hierarchy of authority in the organization.
When a non-credit service development organization structure is complete, it will make employees in the field understand their job position, the organization's expectations for them through rules and work procedures. In addition, the organization structure also contributes to determining the regulations for collecting and processing information to make decisions and solve organizational problems.
A commercial bank with a reasonable and coherent organizational structure for developing non-credit services and assigning non-overlapping tasks will become an effective and synchronous working chain. On the contrary, if it is not reasonable, the bank will waste human resources, work efficiency will not be high, leading to limiting the development of non-credit services of the bank.
Second: Banking human resources
The human factor is always highly appreciated, even the most important factor of all success. Banks that want to provide good, high-quality services as well as attract customers need to have a team of competent staff. The quality of banking human resources is demonstrated in their mastery, professional knowledge, and understanding of professional aspects. At the same time, bank staff also need to be dynamic and agile, with the demeanor of people in the new era. Because these are highly sensitive services, customer care work is very important.
Customer care and service become more and more important. The number of human resources in the bank is also a factor affecting the development of DVPTD. The development process of banking human resources, both in quality and quantity, has an important meaning for the development of the commercial banking system.
The "human resources" factor has a great influence on the development of non-credit services at the Bank. In the era of technology 4.0, human resources must always focus on linking human resource development with new technology. High-quality human resources with professional ethics and expertise will help the Bank create loyal customers, prevent risks that may occur in business and investment activities, and this is also a factor that helps banks reduce operating costs. On the contrary, human resources with limited expertise and poor professional ethics will negatively impact the development of the bank in general and the development of non-credit services at the bank in particular. That affects the image of the bank, directly affecting the retention of existing customers and the exploitation of new customers. For DVPTD, a service sector with development closely linked to technology, requires agility and quick grasp of technology to be able to guide and advise customers. Poorly trained personnel will not create trust, meet the needs and satisfy customers. This directly affects the retention of existing customers and the exploitation of new customers. Poorly trained personnel will lead to personal gain, violating professional ethics, affecting the reputation and brand of the Bank.
Third: Financial capacity
Financial capacity plays an important role in the operation of a bank in general and non-credit services in particular. To develop non-credit services, it is necessary to invest in a modern information technology system. When financial capacity is strong enough, the bank will have enough capital to equip the necessary assets for business, including serving the development of non-credit services. In addition, capital is also used for other practical activities to develop non-credit services such as market research, new service research, and implementing campaigns.
advertising, promotion… More importantly, a bank with large capital scale will easily create trust with customers and partners at home and abroad. If the capital is small, it will not have enough strength to diversify services and improve long-term capital growth strategies, according to appropriate roadmaps, suitable for the development needs and control capacity of each bank in each period.
Fourth: Customer care policy
As competition increases, banking technology in the world has many important changes and is increasingly diverse, when the penetration of foreign banks and financial institutions makes competition increasingly fierce, along with changes in the traditional capital market and increasingly diverse customer needs... That is when banks need to pay more attention to their customer policies. Customer policies are policies that banks apply to demonstrate marketing strategies at the customer or customer segment level, based on decisions made to allocate existing resources of the bank, the ultimate goal is to provide services to satisfy the increasing needs of customers, thereby achieving the goal of maximizing the bank's profits. Banks with good policies will attract and retain customers. Customers who are loyal to the bank increase the opportunity to use services at the bank. Finding a new customer is costly and ineffective, so in addition to expanding new customers, banks must also find ways to retain old customers. Loyal customers create greater profits as well as more sustainable benefits for a bank. Customers will be willing to introduce banking services to friends and relatives and do free advertising for the bank when they love the bank. Many surveys have proven that this advertising effectiveness is many times higher than the bank's own advertising. Moreover, when customers have transacted with the bank many times, they will be familiar with all procedures and banking services, which helps save the bank's operating costs.
Building a good customer care policy means that the bank has defined, cared about and understood the importance of customer care. In which, service quality is an invisible but tangible factor.
The vision and customer care policy of the bank are vital in the current service business of commercial banks. From the perspective of the bank, service quality is to ensure the provision of services according to the script with high professional skills of the supply staff and management staff. Good service quality will make customers satisfied. From there, customers will trust and stick with the bank, and at the same time introduce other customers to use the bank's services. The increasing number of customers using non-credit services is the criterion for evaluating the bank's non-credit services that are developing in a positive direction. On the other hand, service quality is assessed through safety, accuracy and transaction processing methods. The above factors are guaranteed, the reputation and brand of the bank will be increasingly affirmed. In the current context, customers have many choices in using banking services. Service quality is the factor that has the greatest impact on customer satisfaction. Some customers are willing to pay a little more in exchange for satisfaction when dealing with the bank. Banks compete fiercely with each other to gain market share in non-credit services. If the quality of non-credit services is not good, the bank has lost customers, which means gradually losing the opportunity to develop non-credit services at the bank.
Thursday: Technology level
This is a factor that greatly affects the service provision capacity of commercial banks. The expansion of service types, especially modern banking services, is always closely linked to the technology factor. High technology helps banks provide customers with convenient services, meeting their needs. In addition to traditional services, customers today have an increasing demand for modern services, associated with the development of science and technology such as card payments, electronic banking services such as: Internet banking, phone banking... All banking services can only be provided when applying modern technologies such as ATMs, POS card readers, and programs to support the modernization of banking technology. This is also one of the basic conditions for banks to be able to develop more diverse services.
Thanks to modern technology, commercial banks create many convenient applications for customers as well as introduce and perfect the utility of non-credit services, creating sympathy for customers. In industrial life, time is a factor that can determine the response of a customer. Therefore, when technology is applied at a high level, the transaction process when providing services takes place quickly, with few procedures while still ensuring accurate and safe information and costing less for both banks and customers. On the contrary, outdated, backward technology that wastes time will make it difficult to create sympathy with customers, causing customers to leave and not continue to use the bank's services. Losing customers is really a loss for the bank.
Friday: Marketing Activities
The basic elements of banking marketing are market research, development and implementation based on market strategy. Marketing strategy plays an important role in banking operations. The goal of banking marketing is to develop and introduce new types of banking services; apply modern banking technology to serve customers through selling services; improve competitiveness and expand customer base by attracting new customers - those who have not used banking services; and finally increase profits for banks. Banking marketing can be seen as the process of searching for markets ( current and future ) that are beneficial to banking services. This process helps banks build clear goals, paths of formation, methods to implement plans and options for success.
Banks with the right marketing strategy will expand the market and increase the market share of customers using non-credit services. If the bank's marketing strategy is not good, the bank will waste money on marketing activities that do not bring economic efficiency. Non-credit services will not have many opportunities to develop.
Saturday: Distribution channel network
Commercial banks around the world have built distribution channel networks with a combination of electronic and conventional distribution channels that have played an important role in providing services to customers and in developing operations.
DVPTD. Establishing diverse distribution channels to maximize the provision of services and information to customers to meet the increasingly diverse needs of each population. The distribution network includes domestic and foreign branches, affiliated companies, agents, transaction offices, and automatic transaction systems ATM, POS, SMS banking, Internet banking... is creating a huge impact in attracting customers because it brings convenience to customers, reduces travel effort and transaction time, information is updated quickly anytime, anywhere.
A reasonable distribution channel network will save banking costs, while maximizing the attraction and growth of new customers. On the contrary, a distribution channel network that is too dense or overlapping causes waste, but a network that is too sparse causes customers to incur transaction costs and also reduces customers' demand for services.
Eighth: Goals and strategies for developing bank services
Any organization has its own purpose and operating principles. In each specific stage, organizations often set their own goals. The ultimate goal is that all banking activities can generate income for the bank. From that goal, banks build a strategy to achieve the set goals. Strategy is to set out specific plans, an action program including the effective use of resources to achieve certain goals.
Therefore, the bank must clearly define its goals and develop a strategy for developing banking services to ensure that the development of banking services is carried out effectively and with a long-term plan. If the bank's goals and strategies are clear, the activities implemented to develop non-credit services will be logical, coherent, and have a high success rate. On the contrary, if the bank does not clearly define its goals and strategies, the development of non-credit services will only be small, fragmented activities, not creating initiative for the bank and cannot achieve success.
Ninth: Bank reputation and brand
Reputation and brand are extremely important factors in attracting and
develop customers of commercial banks. Banks with a long history of development and prestige in the market are often trusted by customers to use credit services. In reality, there are banks whose service quality is not completely good, but because of their strong brand and prestige, they are still chosen by customers to use their services. The prestige of a bank is shown in the following aspects: payment capacity, business processing techniques, payment time, ability to meet payment methods, and diversity of services. Banks with prestige and good brands easily attract customers and have many opportunities to develop non-bank credit services. On the contrary, banks with poor prestige and brands will have more difficulty in developing non-credit services.
2.2.4.2. Factors outside the bank
First: Political and legal environment and state management agency system for banking services
Banking activities in general and commercial banks' service provision activities in particular are greatly affected by political fluctuations at home and abroad. A stable political environment creates favorable conditions for banks to develop their activities well, gain high profits and contribute to good economic growth. Conversely, an unstable political environment makes it difficult for banks to operate well and to promote their role.
A complete legal system, ensuring uniformity, consistency, stability and transparency will be a factor promoting the economy in general and banking activities in particular, especially the activities of public services. The motivation for each customer to use banking services is the benefits that the services bring to them. Therefore, in order to develop services, it is necessary to issue legal documents and regulations of the State, the banking industry and the banks themselves on the provision of services in a clear and specific manner, clearly defining the rights and responsibilities of the banks and customers so that customers can clearly see the rights and responsibilities of each party when considering using banking services.
On the basis of the promulgated legal system, it is necessary to organize a system of State management agencies to operate and manage the financial services market according to this legal system.