Foreign Exchange Services and Investment Operations of Credit Institutions in the Financial Market

Widely deploy electronic payment services and electronic transaction systems, online transactions, while promoting investment, research and application of new payment tools according to international standards. Widely deploy domestic and international cards, multi-function cards, smart cards, personal checks, automatic transaction systems that allow customers to open accounts anywhere and make transactions wherever there is a transaction point. Promote services as agents for issuing and paying international cards and checks, and gradually issue international payment cards of Vietnamese credit institutions.

Facilitate the development of remittance services through the banking system. Establish a direct remittance channel with correspondent banks in countries where many Vietnamese people live and work. Expand remittance payment points and convenient remittance payment methods.

3.1.2.4. Foreign exchange services and investment operations of credit institutions in the financial market

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Concentrate domestic foreign currency resources into the banking system to best meet and control the reasonable foreign currency spending needs of businesses and individuals, while contributing to reducing dollarization.

Create conditions for credit institutions to deploy foreign currency derivative services; forward trading, foreign currency swaps and option contracts (between VND and foreign currencies; between foreign currencies; between credit institutions and between credit institutions and customers) to contribute not only to better meet customers' foreign currency needs but also to improve the ability to prevent exchange rate and interest rate risks related to foreign currency assets and income of customers and credit institutions, and at the same time encourage the development of the foreign currency market.

Strengthen and rectify foreign exchange activities, and continue to reasonably expand the network of agents and foreign exchange desks to create conditions to attract foreign currency floating in the currency market, especially the interbank market, in order to effectively use available capital to ensure safe payment capacity.

In addition, it is necessary to take advantage of scale to gain market share.

Gradually liberalize banking services trade and facilitate Vietnamese credit institutions to access international financial markets and provide international banking services to residents and non-residents, while allowing foreign credit institutions to access the domestic banking services market according to the roadmap of easing control over capital account-related transactions and opening the financial market in accordance with international commitments.

3.1.2.5. Other services

Develop a diversified banking service system linked with non-bank financial services; form a comprehensive and diversified banking service system to meet the increasing demand of society for financial services to encourage organizations and individuals to save and effectively invest savings assets on the basis of expanding access to financial and banking services and business opportunities. Create conditions for credit institutions to effectively participate in providing non-bank financial services to maximize business capacity and increase credit institutions' income, while credit institutions participate more actively in the capital market and insurance market to diversify business activities, improve the ability to transform and prevent risks of credit institutions.

3.2. Solutions for developing banking services at BIDV

3.2.1. General solution group

3.2.1.1. Building a strategy for developing synchronous banking services

Determine competitive position : Take advantage of scale, increase market share to attract customers; Continue to restructure organization and management, improve management and administration capacity; Build a strong financial foundation on the basis of improving profitability, developing human resources capable of adapting to an increasingly fierce competitive environment.

Industry structure: Focus on 3 strong areas: Finance - Banking, Insurance, and Securities; Many actual and potential competitors, with many state-owned commercial banks, joint-stock commercial banks, and foreign bank branches.

South to develop card services business in the South.

Business activities: Financial - Banking, Insurance and Securities services; Sustainable growth and development based on prioritizing quality and efficiency; Maintaining BIDV's position as one of the four largest banks in Vietnam. Achieving a healthy financial structure and capacity.

Operational efficiency: Gradually reduce operating costs to reduce lending interest rates; Best benefits for customers; Increase capital efficiency by quickly rotating capital; Limit risks.

Identify target customers: Economic corporations, social organizations and general companies, enterprises, high-income people both domestically and internationally.

Innovation and improvement: Provide customers with new services that are highly differentiated and difficult to imitate; Widely apply information technology products to shorten service processing procedures.

3.2.1.2. Perfecting the model of organization, management and business of retail banking

On strengthening the organizational model and management of retail banking activities at the Head Office in the period of 2015 - 2020: Strengthening the operational and management capacity of the Retail Banking Division at the Head Office (Retail Banking Development Board, Customer Care Center and Card Center).

a) Strengthening the activities of the PTNHBL Board

Add more task functions.

Establishing the E-banking Service Department to meet the growth of these activities, with the main task of researching, building, developing and organizing the business of E-banking products on the basis of exploiting BIDV's current core electronic banking systems (Core System).

b) Strengthening the operations of the Card Center

Strengthening the operations of the Callcenter department serving card customers and other activities. Establishing a Product Research and Development Department, separated from the Business Development Department. Establishing a regional center in the region.

c) Building a customer support center via phone (Contactcenter) as an independent unit of the Retail Block

Enhance Contact Center operations.

Following the recommendation of the card business strategy consultant, convert the Card Center into an independent business unit or Card Company, then the organizational model includes the following departments: Card Business Department, Product Research and Development Department, Operations Department, Customer Care Department, Risk Management Department, Technical Department, Accounting Department and General Administration Department.

Regarding the NHBL business organization model at Branches in the period 2015 - 2020: Add Financial Advisory Department/Division (FA) and Private banking Department/Division in key economic development areas.

Regarding the organizational model for managing NHBL activities: Perfecting the organizational model for managing NHBL activities.

At Head Office: The retail banking division is the focal point for managing and developing retail business activities, headed by a Deputy General Director.

Establish an additional retail management department to carry out the tasks of planning, directing, inspecting and supervising retail activities according to the planned objectives.

Develop regulations on functions and tasks for each department, division, and job position in the retail sector at headquarters and the retail department at branches and transaction offices.

At the Branch: Although the one-stop transaction model has just been put into use, it has shown certain effectiveness such as a streamlined, compact apparatus, saving management costs, releasing customers faster... However, during the operation, the function is still unclear. The bank needs to build a model in which the departments in the retail business are clearly divided into tasks.

Retail Customer Service Department/Retail Customer Service Team/Transaction Office/Savings Fund are units

Sales positions at the Branch are headed by a Deputy Branch Manager.

At the Retail Customer Service Department/Retail Customer Service Team, there is a department head or deputy department head in charge.

Build branches and transaction offices into professional retail organizations with separate, independent personal customer service departments, specializing in all retail products and services.

Build a management mechanism for each service, monitor the development level of each service, regularly update changes in services according to the market and build a mechanism to attach responsibility to the management unit and management staff with each development of each assigned retail service.

Supplement and complete the functional and task descriptions for each job position, clearly distinguishing sales and service consulting tasks from operational activities.

3.2.1.3. Strengthening management and administration capacity

Establish specific structures and limits in operating business plans to ensure safe implementation of development goals in operations.

Build and standardize institutions, regulations and rules in banking management and business operations in line with international practices and towards target customers.

Promote research and development activities and exploit information to serve management and operation.

Build an incentive mechanism to develop services for units from headquarters, branches to transaction offices to enhance responsibility as well as commend staff with good achievements in service development.

Establish and form a synchronous and unified business organization model from the head office, branches to transaction offices. Thereby consolidating the operational role of the head office and building transaction offices into professional sales organizations with relationship departments.

Independent, dedicated retail customers.

negotiation skills, corporate culture, basic rights and obligations.

Guide transaction offices to deploy an organizational model, thereby guiding the transfer of functions and tasks from the Personal Customer Service Department and the General Planning Department to the Personal Customer Relations Department, determining the labor quota for service activities according to the principle of prioritizing the quota for departments developing service activities. Specify the functions and tasks of customer relations officers through the development of job descriptions for personal customer relations officers, deploying standard transaction models and building work flows at model transaction offices.

3.2.1.4. Developing and maximizing the value of human resources

Phase 2015 - 2020: Strengthening the team of Customer Service staff (CRM, CSA) at the Retail Customer Service Department, Transaction Offices and Savings Funds serving general customers, Financial Consulting staff (FA) serving middle and high-end customers and retail Customer Service staff.

After 2020, gradually build a sales team to serve high-income and very wealthy customers (Private banker and Wealth management).

Perfecting the recruitment process

BIDV needs to build a more professional and complete recruitment process. Add criteria on skills such as computer usage, communication skills, document drafting skills, quick work handling skills while still taking care of customers, and establish an in-depth interview board with the participation of an interview specialist, providing situations to determine personality and skills to arrange suitable jobs.

BIDV also needs advice from professional recruitment companies.

Improve the quality of training

Open training courses for new employees so that they can clearly understand the organizational structure, retail strategy, retail business process system, product and service design and development skills, management and sales implementation skills for all products at the business unit, customer service communication skills, and other skills.

Conduct scientific and serious training results evaluation, evaluate employee progress after training courses based on work quality and efficiency, thereby having more appropriate training policies.

Maintain an annual employee evaluation program to identify talent, develop talent into successor leaders, and have good policies to ensure talent retention.

BIDV needs to build a career development process for existing and potential talents, and conduct employee training and development by sending them to long-term training courses domestically or abroad.

Continue to cooperate with banks in the system to organize training courses to improve the quality of retail banking operations.

Build a reasonable employee benefits policy

Regularly expand product sales competition programs, supplement the competition evaluation and bonus at the end of the quarter and year, demonstrating the timeliness of the compensation policy. Continue to maintain policies that care about employees such as insurance, vacation, allowances, and holiday bonuses...

BIDV should apply a policy of retaining employees according to the 5I formula: Interesting work: rotating jobs for employees

Employees avoid the work being repeated day in and day out, which becomes boring and they leave to look for new jobs.

Information - information: employees need to know clearly about their work, their work performance, their superiors' evaluation of them, and timely compliments and reprimands.

Involvement - encourage employees to work together with the bank to solve related problems.

Independence - independence: creates conditions for employees to work independently, limiting the mentality of being constantly monitored.

Increased visibility - increase transparency: let employees express, learn and share experiences in handling work, do not let employees hide ideas and initiatives, create conditions for everyone to work freely and comfortably with each other, reduce jealousy and envy, create a working environment with less pests.

Focus on the professional style of service staff

BIDV needs to innovate its retail transaction style, focusing on promoting dynamism, enthusiasm, and demonstrating civility and politeness of employees towards customers to create a good impression of the bank's service quality. In particular, it is necessary to change the working style from passively receiving and implementing customer requests to a proactive transaction style to maximally meet customers' financial service needs, focusing on service quality and being ready to bring the highest satisfaction to customers.

Continuously improve the discipline of staff, enhance the spirit of cooperation and support each other in work between departments to serve customers in the best way.

At Headquarters: training in NHBL business knowledge, skills in designing and developing products and services, skills in managing and implementing sales of products and services through the branch network and other sales channels. In addition, training in knowledge of retail customer relations, how to serve customers for NHBL staff at Headquarters.

At the branch: regular training on retail banking products and services, operational procedures for customer relations officers; For specific services such as insurance services, specialist training on services can be organized at the branch; Periodically organize sales skills training at the following levels: CRM Customer Relations Officer and FA Personal Financial Consultant, CSR Customer Reception Officer, Teller Customer Service Officer, including: customer communication skills, introduction

Introduce, sell retail services, develop and maintain customer relationships...

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