Infrastructure Improvement, Technology Modernization

The manager is the one who decides how many people are on the payroll and that is the customer - the customer is the one who pays the wages.

The branch leaders also require all Bank staff in general and especially Customer Service staff in particular to work and act according to the motto "always think and do the best for customers". The branch should add the "customer satisfaction" score to the basis for calculating salaries and bonuses to motivate Bank staff.

Regularly organize emulation movements and union movements to encourage the dedication of staff to the branch.

3.2.5.3 Infrastructure improvement, technology modernization

Modernizing equipment and facilities is a necessary requirement for branches today. This not only helps branch staff work effectively and maximize their potential, but also creates a good impression on customers. Factors related to facilities will affect customers' psychology about the scale and position of the branch. Currently, the area of the branch and its affiliated transaction offices is still small, and the appearance of the branch does not really attract customers' attention, so it is necessary to redecorate to attract more customers' attention.

Developing the market for lending to customers with a large number of borrowers but small loan sizes, therefore, applying modern technology will help increase labor productivity, save time in performing business processes, be able to solve and handle many tasks in a day, serve customers' needs more quickly, thereby bringing prestige to the branch. The programs for collecting, analyzing, processing information, software for monitoring, managing debt collection processes... applied will contribute to reducing time and effort for customer relations officers. Therefore, the Branch should focus on building a plan to invest in equipment and technology to gradually develop payment methods.

3.2.6. Strengthening the inspection and supervision of loan use

Branches need to pay more attention to checking and monitoring customers' use of loans to ensure the capital that the Bank provides.

Invested for the right purpose and not contrary to the provisions of law, thereby improving the efficiency of investment capital.

Customer service and risk management staff must always be proactive, monitor the activities, work status and income of customers, and regularly update customer information such as:

i. For lending to households for production and business: It is necessary to monitor the production and business situation at the customer's premises; monitor fluctuations in the customer's output and input markets and mortgaged assets. If there are signs of a decrease in the value of the mortgaged assets, the Bank needs to implement additional measures to ensure compliance with current regulations of the State and the superior Bank.

ii. For other purposes of lending to science and technology: Closely monitor the working status, monthly income, changes related to health, work, family of the borrower. Periodic medium-term loans must have measures to check the use of capital, collateral, principal repayment status of each period...

3.3. Some recommendations to create an environment and conditions for developing the market for KHCN lending services of BIDV Hai Duong branch

3.3.1. Recommendations to the Government and the State Bank

3.3.1.1. Recommendations to the Government

In addition to managing the macro economy in a stable and flexible manner, suitable for each period, controlling inflation, stabilizing foreign exchange rates, gold prices, gasoline prices, and reducing unemployment rates, the Government should have policies to break the ice, promote the development of the real estate market and make this market healthy. Currently, the Government has a support package of 30,000 billion VND for the real estate market, but the effectiveness and practicality of this support package are still low and have not been very effective.

The State Bank is constantly improving the legal environment for banking business activities, especially credit activities in general and credit lending activities in particular. The improvement of the legal system of the State Bank and the Law on Credit Institutions will facilitate commercial banks to lend to the economy, avoiding rigidity in the issue of considering conditions.

Credit provision must also ensure efficiency and credit safety to avoid risks for commercial banks.

At the same time, the Government needs to make adjustments to the operating mechanism, increasing the authority of the VAMC Asset Management Company. Because this is a very good channel to handle bad debts for banks, solve difficulties, and improve banking operations. Currently, the operation of VAMC has not really played a significant role in completely handling bad debts of banks.

In addition, the Government needs to develop policies to support the development of the banking and financial system, promote and increase non-cash transactions. Prevent and prosecute crimes in the banking and financial sector, helping to create a safer and healthier banking environment.

3.3.1.2. Recommendations to the State Bank

For state-owned commercial banks, when issuing regulations on deposit interest rates and lending interest rates, the State Bank needs to issue them promptly, closely following market fluctuations, avoiding delays and being out of sync with the market, reducing the effectiveness of policies, causing difficulties and inefficiencies in implementation by banks;

The State Bank needs to issue detailed and specific regulations to strengthen the role and authority of commercial banks in handling collateral, resolving bad debts, buying and selling bad debts... to ensure the business activities of commercial banks, contributing to the development and stability of the economy.

3.3.2. Recommendations to the People's Committee and departments of Hai Duong province

The People's Committee of Hai Duong province and departments and branches need to have a policy mechanism so that local banks can reach a consensus to develop lending services, avoiding unnecessary fierce competition that causes market disruption and waste in investing in modern equipment. Although Hai Duong province is very large, local banks mainly operate in Hai Duong city with a large number of branches, transaction offices and transaction points, so they can only meet the needs of customers in the city, while the majority of people living in districts and communes are still facing difficulties.

3.3.3. Recommendations to BIDV

Firstly, give the branch more initiative in market research in the area where the branch operates, organize training courses on market development, support the branch to establish an independent Marketing department so that the branch can proactively grasp the market situation in the area of operation, competitors, customer characteristics, etc. to have specific and appropriate solutions and implementation plans in the area, at the same time the branch will proactively increase costs for marketing and customer care. This is of great importance to the branch in developing the lending service market in general and the KHCN lending service market in particular, as well as other activities, helping the branch proactively implement the retail development strategy as well as successfully complete the business plan.

Second, the Head Office should focus on improving information technology to meet the requirements of foreign business, connecting payment transactions, consulting on the implementation of banking technology modernization, and accessing new technologies.

The most modern technology in the country and internationally to diversify personal credit forms, improve quality and competitiveness.

Third , promote cooperation with domestic and foreign organizations to seek cheap and long-term capital sources for lending to science and technology. Strengthen research and design of new products to support the development of science and technology lending activities. Develop and synchronously implement a system of internal regulations and procedures on risk management, with special attention paid to the development of credit handbooks, regulations on customer rating, credit quality assessment and bad debt handling.

Fourth , further strengthen the mixed promotion program, advertising on newspapers, radio, and media to use this advertising channel to provide information on the level of awareness of KHCN loan products and services, especially need to further strengthen the articles published emphasizing outstanding achievements and events of BIDV.

CONCLUDE

With the increasingly strong development of the economy, the living standards and income of the people are improved, the personal banking products and services are growing strongly, opening up new business opportunities, creating an effective distribution channel to seek profits for commercial banks. Currently, personal lending services are no longer a new issue in Vietnam, commercial banks have been increasingly developing their lending market share and have somewhat achieved a relative market share in the service market. However, in order to maintain market share and continue to expand the market in the future, commercial banks will need to find the right direction, demonstrated through careful research of the market, customer behavior, competitors, market forecasts to come up with strategies to break through to develop the personal lending service market effectively in both depth and breadth.

Therefore, the study of solutions to develop the personal lending market can be considered a topical and urgent issue of special concern to commercial banks oriented towards the current retail path. Based on theoretical and practical research at the Bank for Investment and Development of Vietnam - Hai Duong Branch, the thesis has completed the following main contents:

Systematize basic theories on the content of developing the personal loan service market of commercial banks.

Through practical research on the current situation at BIDV Hai Duong branch and service market factors, along with the results achieved, the author has drawn out the successes, limitations and found the causes of these activities. From there, solutions are proposed to develop the market for lending services for science and technology at the branch.

Despite the efforts in research and study, the thesis cannot avoid certain shortcomings and limitations. The student hopes to receive comments and guidance from teachers, researchers and interested readers to further improve the thesis.

REFERENCES

Vietnamese

1. Dao Minh Duc “Solutions for developing personal credit at Vietnam Joint Stock Commercial Bank for Foreign Trade” , 2014

2. Nguyen Thu Huyen, Master's thesis " Marketing mix management of personal loan services at Tay Do Agricultural and Rural Development Bank ", 2015

3. Trinh Thi Thu Huyen, Master's thesis in economics on the topic " Parallel development of wholesale and retail banking services at the Foreign Trade Bank - Ho Chi Minh City Branch", 2011.

4. Prof. Dr. Nguyen Bach Khoa - Dr. Nguyen Hoang Long, Associate Professor, " Commercial Marketing", Statistical Publishing House, Hanoi, 2005.

5. Associate Professor, Dr. Nguyen Hoang Long and Associate Professor, Dr. Nguyen Hoan Viet, Strategic Management, Statistical Publishing House, Hanoi, 2015.

6. Associate Professor, Dr. Nguyen Van Thanh, “ Vietnam’s Economy to 2025: Opportunities and Challenges ” organized by the National Center for Socio-Economic Information and Forecast (NCIF) at a scientific conference held in Hanoi on October 10, 2016.

7. Associate Professor, Dr. Nguyen Van Tien, Textbook " Commercial Bank Management ", Statistical Publishing House, Hanoi, 2013.

8. Le Van Te, Master of Business Administration thesis on "Development of international payment card market in Vietnam", 1999.

9. Nguyen Thi Dang Thuy, master's thesis "Expanding lending to individual customers at Vietnam Prosperity Joint Stock Commercial Bank, Da Nang branch , 2014.

10. Mai The Thuan, master's thesis "Improving Marketing Strategy at Techcombank", 2012.

English

1. Jim Alexande and Nigel Hill, “ Handbook of customer satisfaction and loyalty measurement ” 2002.

2. A, Decressin, J. Hardy, D. Kudela, “ The contribution of retail service market development to the growth of commercial banks”

Websites:

- http://www.bidv.vn/

- http://www.banknetvn.com.vn

APPENDIX

Appendix 01: Questionnaire for customers using KHCN loan services

JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT

VIETNAM HAI DUONG BRANCH

Address: No. 2 Le Thanh Nghi, Hai Duong City

External survey form with customers

Maybe you are interested!

QUESTIONNAIRE FOR LOAN CUSTOMERS

(Regarding the development of the personal loan service market)

To improve the quality of service and meet the increasingly better needs of customers. We hope that customers will take the time to answer some information for us according to the survey form below. We promise that your information will be kept absolutely confidential and will only be used for research purposes to serve you better in the future.

Part 1: Information about customers

Question 1: Age □ 18 - 35 years old □ 36 - 45 years old □ 46 - 55 years old □ Over 56 years old Question 2: Occupation

□ Business owners/leaders □ Employees

□ Business, trade □ Other Question 3: Average monthly income

□ < 5 million □ 6 - 10 million □ 10 - 15 million □ > 16 million

Part 2: Reasons and approaches to loan products and services

Question 4: Why do you borrow capital from the Bank?

□ Really in need □ Advised by a consultant □ Other (specify) Question 5: What is the purpose of your loan?

□ Buy a car □ Buy a house □ Business □ Other purposes Question 6: You know information about the loan product through (can select multiple boxes)

□ Other people's recommendations □ Banners, flyers

□ TV, radio, internet (media) □ Marketed by NVNH

Part 3: Evaluation of BIDV's KHCN lending service

Products and services

Question 7: List of products and services (compared to other banks)

□ Diverse, rich □ Normal □ Few, limited

Question 8: SPDV is designed and adjusted (compared to other banks)

□ Meets needs □ Normal □ Not met

Price

Question 9: SPDV's lending interest rate (compared to other banks)

□ High □ Normal □ Low

Question 10: Costs in the process of using loan capital (compared to other banks)

□ High □ Normal □ Low

Distribution system

Question 11: Design is consistent, unified and easily recognizable

□ Agree □ Neutral □ Disagree

Sentence 12: Healthy and convenient

□ Agree □ Neutral □ Disagree

Question 13: BIDV's distribution channels and transaction locations

□ Good response □ Normal response □ Not responsive

Promotion program

Question 14: Customer contact work

□ Active □ Normal □ Passive

Question 15: Promotion program

□ Attractive □ Acceptable □ Average □ Unattractive

Question 16: Customer care via hotline

□ Good response □ Normal □ Not responsive

Procedure

Question 17: The lending process and procedures are numerous, cumbersome and complicated.

□ Agree □ Neutral □ Disagree

Time

Question 18: Slow transaction execution time

□ Agree □ Neutral □ Disagree

Staff

Question 19: Qualifications of bank employees

□ Good □ Average □ Poor

Question 20: Maintain regular contact between bank staff and customers.

□ Agree □ Neutral □ Disagree

Question 21: Satisfactorily resolve customer complaints

□ Agree □ Neutral □ Disagree

Question 22: Service style and attitude of bank staff

□ Listening, ready to serve □ Normal □ Not enthusiastic

Reputation, brand

Question 23: BIDV's reputation compared to other banks

□ Yes □ No

Question 24: How do customers rate BIDV's brand?

□ Very strong □ Normal □ Unbranded

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