Increase Product Safety and Trust

4.2.2.3 Increase product safety and reliability

Vietnamese commercial banks need to increase the trust of customers in performing non-bank credit transactions through manifestations such as performing quickly, accurately, without errors right from the first transaction and performing within the time limit that the bank has committed. In addition, Vietnamese commercial banks need to be ready to serve or resolve any problems related to the transactions that the bank has provided. The bank sends statements and transaction documents regularly and promptly.

4.2.2.4 Diversify transaction forms and distribution channels

With the motto "Bringing the bank to customers" to create convenience for customers, open many transaction channels to increase the number of customers and thereby contribute to creating the image and brand of Vietnamese commercial banks to the public. Vietnamese commercial banks need to re-evaluate the effectiveness of current distribution channels. This review aims to adjust the density as well as the rationality in the allocation of branches, transaction offices or ATM locations in each area. Traditional distribution channels are very necessary in newly developed areas/regions to capture the market right from the beginning. In addition, Vietnamese commercial banks should study the establishment of transaction points right at the offices of customers with large transaction levels.

Maybe you are interested!

The ATM system needs to be upgraded with additional services and utilities and deploy effective guidance channels so that each ATM can be turned into a "miniature bank". The effectiveness of each "miniature bank" can only be truly promoted when there is increased connectivity between banks. Along with that, the increased number of card acceptance points is also a driving force to promote the development of user needs. Distribution channels through agents to serve remittance payments or payment agents also need to be expanded. Opening bank kiosks means placing work stations on the street with high-speed network connections. When customers access the system, they can perform the desired transaction or request services. This is very simple and easy.

so that customers can be served by banks after providing their ID number and password. In the near future, this kiosk can be installed at the headquarters of commercial banks, then deployed in two major cities, Ho Chi Minh City and Hanoi. Currently, in Vietnam, banking kiosks are considered a relatively new transaction channel, so if any commercial bank successfully deploys it early, it will raise its reputation and brand to a new level in the Vietnamese market.

Some new, modern and more convenient types of services need to be expanded and deployed throughout the banking system to increase responsiveness such as on-site banking services, online banking services, etc. Specifically:

- Developing on-site banking services: Many foreign banks have been ahead in implementing on-site banking services such as ANZ, HSBC, Deustchebank... such as bank staff serving at locations requested by customers. Developing on-site banking services helps financial institutions strengthen relationships with customers, create friendliness, closeness, care for customers and also create dynamism for banks... When on-site customer service of banks develops, it will help banks save more costs when they can serve many customers at once.

- Development of online banking services: Along with the continuous growth of technology and telecommunications, online banking services tend to develop very strongly and bring significant revenue to banks such as mobile banking, phone banking, internet banking, home banking... to meet diverse customer needs.

Joint Stock Commercial Banks must also focus on developing automatic transaction services such as automatically deducting payment accounts for customers' payables such as electricity, water, telephone, cable TV, Internet, and tuition fees of customers or their relatives. Currently, automatic deduction of electricity bills is of great interest to Joint Stock Commercial Banks, but customers cannot pay many payables on one account because service providers open accounts at different banks.

Developing the banking network also includes card acceptance points, universities, shopping malls, apartments, and condominiums to enhance reputation, brand, and create an image in customers. The banking system always ensures 24/7 operation. Automatic transaction points need to be enhanced with many features, ensuring that customers can contact at any time or anywhere, including holidays, festivals, and Tet.

In addition, the current economic development trend is showing that the development of highly convenient banking services following the development of the 4.0 industrial revolution is a key issue in the market positioning of Vietnamese commercial banks. Instead of maintaining the absolute dominance of traditional products, it is necessary to encourage customers to use high-tech products such as online mobilization or lending products. This is considered a new and advanced solution aimed at many different customer groups. These can be busy businessmen, people with limitations in banking transactions, to young, dynamic people who prefer to use technology. Although considered a new solution, the number of people using these high-tech services does not seem to satisfy the current development potential of banks in the system. Banks need to introduce stronger promotion policies for this type of product by having many programs to encourage customers to deposit money online such as giving accumulated points, giving promotional gifts or giving interest rates... There needs to be widespread announcements in the customer network, instructions on how to use the service as well as dedicated service consultation for many different users. In the context of technology, smartphones or the internet are no longer strange to the majority of residents, encouraging customers to use technology deposit products is considered a partial victory when based on the available potential of the people.

Also based on technology platforms such as online mobilization products, online lending - online lending is also becoming a new trend of the Bank aiming at small loans for consumption, promoting spending needs.

That, in turn, will support the development of other non-credit services of the Bank. Especially with product combo packages designed "tailor-made" for each customer, satisfying the needs of depositing money, borrowing money or other payment transactions on a high-tech platform that is favored by office workers, willing to pay for the experience, it is predicted to become a "gold mine" for the Bank itself.

4.2.2.5 Solutions to increase competitiveness of banks

The competitiveness of a Bank is formed from many different influencing factors. Banks need to pay special attention to two issues: enhancing the image and reputation of the Bank and standardizing business processes. A Bank with good facilities, modern technology, agile service style of staff, and clear and enthusiastic guidance creates a much better impression than other Banks.

Through the survey results conducted in the study, it is found that most customers evaluate the tangible means component of Vietnamese commercial banks at a relatively higher level than other components but not optimal. Therefore, commercial banks need to pay attention to developing tangible means in the coming time.

The tangible means of a bank are very important in the first impression of customers, they are the fixed assets of the Bank as well as the Bank's employees. A Bank with good facilities, modern technology, quick service style of the staff, and clear and enthusiastic guidance creates a much better impression than other Banks.

To create trust for customers in transactions, especially non-credit services such as capital mobilization, account services, treasury services, commercial banks need to pay attention to tangible means such as building adequate, convenient, customer-attractive facilities and a system of modern equipment to serve customers.

Vietnamese commercial banks need to create an impression in the eyes of their customers. Transaction locations with customers or the bank's headquarters often have to be

Choose beautiful locations, expensive costs but that is the first impression of customers on the Bank. Normally, transaction locations are often located on large streets or densely populated areas. However, nowadays, it is also necessary to pay attention to the convenience of parking when customers enter the transaction. Each Bank creates a difference in logo as well as slogan in the principle of customer service. Besides, it is investing in employees in a systematic way from polite uniforms, bearing the Bank's own mark to transaction style.

Standardizing procedures is considered the key to simplifying procedures, business processes, and shortening the time to perform transactions. This ensures accuracy, safety, and convenience for customers in order to best serve them according to standardized procedures that are guided in a synchronized manner. Vietnamese commercial banks need to pay attention to standardizing business processes to ensure both strictness and convenience for customers when transacting through the following: Simplifying procedures, business processes, shortening the time to perform transactions but still ensuring accuracy, safety, and convenience for customers in order to best serve them. It is necessary to develop standard business processes, then conduct guidance, training, and uniform implementation throughout the system to avoid cases where each branch guides customers on inconsistent procedures and processes.

4.2.2.6 Improving risk management capacity

Improving risk management capacity is considered a vital factor in the development of non-credit banking services. Good risk management quality is a prerequisite for developing integrated products, requiring high technology as well as complex operating techniques. Risk management needs to be identified as a system that must be synchronized for high operational efficiency. Therefore, improving risk management capacity needs to be combined with improving the quality of human resources for both staff and leaders. Risk management is not only carried out when risks have occurred, but it is a comprehensive process with many stages, many steps, starting from the time of providing products to the market.

To be effective in providing non-bank credit services in the market, the key factor is

The human factor is very important. This is because if banks cannot find their own difference in managing the quality of the products they provide, it is easy for them to imitate and copy their services. Therefore, investing in human resources is a necessary thing to create competitiveness in providing services in the market.

Improving the quality of human resources is one of the important solutions contributing to the development of banking services. Regular training and retraining of bank staff to improve the quality of human resources is a way to ensure that banking activities are performed in the best way. Training helps staff become more professional, have knowledge and skills to perform their duties in the best way. This is also a measure to increase the professionalism in service provision of bank staff. For potential managers at all levels, there should be a plan for training, internship, and personnel exchange with reputable foreign banks operating both in and outside of Vietnam. To improve the quality of human resources of Vietnamese joint stock commercial banks, it is necessary to:

- Regarding human resource recruitment: Forecast human resource needs for units, develop recruitment policies and processes, select talents to discover and attract good staff.

- Regarding training and retraining: It is necessary to have a specialized training program and plan for Bank employees. Training on the use of products created from modern technological achievements. Continuously open short-term courses with leading experts to update and equip knowledge for grassroots staff. In addition, it is necessary to design training programs to improve customer communication skills, handle situations as well as assess customer psychology. To meet the increasingly competitive requirements between banks, it is necessary to continuously update knowledge from basic to complex for existing Bank staff. Actively train and evaluate the quality of staff through serious evaluation of the results obtained from training, ensuring the construction of a team of staff with business knowledge on par with experienced international bankers.

For managers at all levels, it is necessary to pay attention to nurturing soft skills to promote creativity and breakthroughs in thinking. That creates modern management ideas, helping to develop change strategies to promote better business efficiency.

For tellers and customer relations specialists, focus on training in a professional and modern style in product provision. The retail network is only truly effective when the staff directly implementing it have enough soft skills to adapt in necessary situations. That determines the ability to attract and retain customers in banking business activities.

Not only professional training, but also when the customer base is increasingly diverse, the number of foreigners is also increasing with the development of the economy in Vietnam, foreign language training becomes extremely necessary. Whether the operations of Vietnamese banks can meet the strict requirements of the vibrant market or not depends largely on continuous training in many different forms to lead to a standardization of labor quality.

- Regarding human resource management and remuneration policies: Perfecting human resource management tools step by step according to international standards. Building a standard system of legal documents related to human resource management, ensuring harmony of interests between employees and employers. Building a system of policies and mechanisms suitable for business conditions, ensuring high integration and competition requirements. Building and implementing new income payment regulations, meeting the requirements: attracting and maintaining a team of good staff, stimulating and motivating staff is suitable for the requirements of the law and the financial capacity of each Vietnamese Joint Stock Commercial Bank.

There is a strategy to recruit, attract and develop good human resources for the bank by building a team of qualified bank staff. This is a young, highly qualified human resource. Implement policies to adequately treat qualified human resources working at banks with preferential income and competitive level. In addition, it is necessary to build a set of professional standards for each position. From there, create a reference basis for standardization.

staff as well as satisfactory treatment policies. Many banks in the world have implemented this solution, but domestically it is not really clear.

In addition, in the current integration conditions, one of the urgent requirements for domestic commercial banks is to continuously improve their management and operation capacity to increase their competitiveness. To do this, domestic banks need to:

- Improve the quality of management and administration: Vietnamese commercial banks need to clearly separate the authority and responsibility of departments and centers at the Head Office as well as strengthen the coordination between these departments and branches throughout the system in developing non-credit services. Accordingly, the service organization model at the Head Office of Vietnamese commercial banks should be divided into blocks in charge of business activities in the wholesale service sector, retail service sector, card service sector, foreign exchange and derivatives business service sector, service operations sector and supporting sectors in charge of information technology, branding, legal, finance and accounting.;

Strengthening risk management capacity: Establishing and implementing professional strategic management activities, through establishing consensus in strategic planning management and linking relationships with annual business plans. Building specific processes to form professional strategic management activities. Strengthening and improving the quality of forecasting and market research to serve management and operation to develop non-credit services.

- Improve market risk management capacity and operations according to international practices: Thoroughly separate the functions and tasks between the two departments of business and risk management. Enhance the independent role of the risk management system, gradually apply quantitative risk management and crisis testing models. Build an early warning system and develop a system of tools and software programs to serve market risk management and operations according to international standards and practices.

Comment