Beneficiary : An organization or individual designated by the Insurance Buyer to receive insurance benefits according to the provisions of the insurance contract. In case the Insurance Buyer is also the Insured in the main product contract, the Insurance Buyer can designate anyone as the Beneficiary according to his/her wishes. If the Insurance Buyer is different from the Insured in the main product contract, the Beneficiary must have an insurance relationship with the Insured in the main product contract.
Insurance relationship : Is the relationship between insurance subjects accepted by the insurance company or in other words, the risk of this subject (Insured) will cause loss (emotional, financial) to another subject. There are 3 subjects in an insurance contract:
- Insurance buyer
- Insured person
- Beneficiary
Contract Expiration Date : The date the contract ends (expires).
Contract maturity date : The annual anniversary of the effective date of the insurance contract during the insurance period.
Due date for payment : The date for the next payment period, according to the payment period chosen by the participant.
Insurance premium receipt : Is the receipt that the agent gives to the customer when receiving the first premium along with the insurance claim file.
Premium payment extension period : Is the premium payment extension period from the contract payment due date. According to current regulations, the premium payment extension period is 60 days.
Premium payment period : Is the period between 2 premium payments. Premium payment period can be: Monthly, or quarterly (3 months), or semi-annual (6 months), or annually.
Total and permanent disability : Is a condition where the Insured Person loses or is completely paralyzed and cannot recover the function of:
- Two hands, or
- Two legs, or
- One arm and one leg, or
- Two eyes, or
- One hand and one eye, or
- One leg and one eye.
Dividend : Is the income (interest) distributed by Prudential to the Insurance Buyer in the form of dividend, if the Insurance Buyer's insurance contract participates in the profit sharing from Prudential's life insurance business activities. Dividend will be notified to the Insurance Buyer at the beginning of each calendar year and is the amount that the customer will only receive in full when Prudential pays insurance benefits according to the Rules and Terms of the contract.
Accumulated dividend : Is the dividend that has been announced and accumulated (combined) before the date Prudential starts paying Periodic Insurance Benefits/ Benefits upon contract maturity, or before the occurrence of an insurance event, depending on the case.
Surrender value : The amount that the Insured will receive back when there is a request to cancel the contract during the effective period of the insurance contract. The insurance contract will have a surrender value after the Insured has paid 2 years of insurance premium.
In the early years, the surrender value is often lower than the premiums paid by the customer. This is because, in reality, the administrative costs incurred are not equal from year to year. In the early years of an insurance contract, the costs associated with issuing and servicing the contract (also known as initial operating costs), such as: appraisal costs, medical testing costs, contract execution and printing costs as well as agent commission costs, etc., are much larger than the costs of maintaining the contract in the following years.
Insurance benefits in case of risk occurrence : These are the benefits that the Insurance Buyer (or Beneficiary) is entitled to when the insured event occurs, depending on the type of product.
Insurance benefits upon contract expiration : Are the benefits that the insurance buyer receives when the contract expires.
Insurance amount : Is the contract value chosen by the insurance buyer when participating in insurance.
Reinstatement of insurance contracts : Is the reinstatement of contracts that have lapsed within a certain period of time by Prudential Company, the reinstatement period is 24 months from the date the contract lapses.
Cooling off period : This is a period of time (21 days) from the date of contract issuance. During this period, the Insured may withdraw his/her decision to participate in the insurance and the company will refund the insurance premium after deducting the medical examination and testing fee (if any).
Contract term : Is the period of time the company accepts insurance on the condition that the insured pays the full premium.
Insurance premium payment period : Is the period of time during which the customer must fulfill the obligation to pay the full premium for the insurance contract he/she has participated in. The premium payment period may be shorter or equal to the contract term, depending on the type of product.
b. Rights and obligations of the insurance buyer The insurance buyer has the right to:
- Choose an insurance company operating in Vietnam.
- Require the insurance company to explain the terms and conditions of insurance, issue an insurance certificate or insurance policy.
- Unilaterally suspend the implementation of insurance contracts according to the provisions of the Law on Insurance.
- Require the insurance company to pay insurance money to the Beneficiary or compensate the Insured according to the agreement in the insurance contract when an insured event occurs.
- Transfer of insurance contracts according to the agreement in the insurance contract or according to the provisions of law.
- Other rights as prescribed by law.
The insured has the obligation to:
- Pay insurance premiums in full, on time and in the manner agreed upon in the insurance contract.
- Fully and honestly declare all details related to the insurance contract as required by the insurance company.
- Notify cases that may increase risks or give rise to additional responsibilities of the insurance company during the implementation of the insurance contract at the request of the insurance company.
- Notify the insurance company of the occurrence of an insured event as agreed in the insurance contract.
- Apply preventive measures and limit losses according to the provisions of this law and other provisions as prescribed by law.
c. Rights and obligations of insurance companies Insurance companies have the right to:
- Collect insurance premiums as agreed in the insurance contract.
- Require the Insured to provide complete and honest information related to the conclusion and implementation of the insurance contract.
- Unilaterally suspend the implementation of insurance contracts according to the provisions of the Law on Insurance.
- Refuse to pay insurance money to the Beneficiary or refuse to compensate the Insured in cases not covered by insurance liability or cases excluded from insurance liability as agreed in the insurance contract.
- Require the Insured to apply preventive measures and limit losses according to the provisions of the Law on Insurance and other relevant provisions of insurance law.
Insurance companies have the obligation to:
- Explain to the Insured the insurance terms and conditions, rights and obligations of the Insured.
- Issue insurance certificate to the Insured and insurance policy immediately after signing the insurance contract.
- Coordinate with the Insured to resolve third party claims for compensation for damages covered by insurance when an insured event occurs.
- Explain in writing the reasons for refusing to pay insurance or refusing compensation.
- Other obligations as prescribed by law.
3.2.4. Legal framework for insurance business activities
- Vietnamese law clearly stipulates the establishment, operation and dissolution of insurance companies as well as regulations on the rights and obligations of the insurance buyer and the insurer in the Law on Insurance Business.
- Currently, the Ministry of Finance grants licenses to establish insurance enterprises with many types of enterprises: state-owned insurance enterprises, joint stock companies, mutual insurance organizations, joint ventures, and 100% foreign-invested insurance enterprises.
- In case an insurance company becomes insolvent, the Ministry of Finance is the management agency responsible for directing and closely monitoring the implementation of measures to restore solvency, requiring the insurance company to transfer all insurance contracts to another insurance company, restricting the scope and field of operation of the insurance company or deciding to dissolve the insurance company.
3.3. Research method
The thesis is written based on descriptive statistics, data collection, comparison and reference methods of documents and expert opinions on issues related to the topic.
3.3.1. Descriptive statistical method
Systematize and process data on Excel software to evaluate the general situation of participating in Prudential life insurance of people in Thu Duc district, Ho Chi Minh City. At the same time, systematize customer opinions on Prudential life insurance products, thereby having a comprehensive view of customers to provide appropriate customer service solutions.
3.3.2. Data collection method
The topic conducts primary data investigation from customers through prepared customer survey forms, collects secondary data at Prudential company branches in Thu Duc district, Ho Chi Minh City and the website of the Vietnam Insurance Association. At the same time, refer to documents related to the research issue.
3.3.3. SWOT matrix analysis method
Identify the company's strengths, weaknesses, opportunities and risks through the SWOT matrix to see the company's position in the life insurance market to come up with appropriate solutions.
SWOT Matrix:
- Internal strengths (Strengths).
- Internal weaknesses (Weaknesses).
- Opportunities from outside (Opportunities).
- External threats (Threat).
Figure 3.2. SWOT Matrix Image
SWOT
Strengths (S) | Weakness (W) | |
Opportunity (O) | S/O combination | W/O Combination |
Risk (T) | S/T combination | W/T Combination |
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State management of business activities of non-life insurance enterprises in Vietnam - 22 -
![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Source: Business Administration book series.
For society, the study also clearly analyzes the role and necessity of life insurance for people in today's life. In addition, the thesis also uses the method of referring to documents related to the research topic in the spirit of selecting the opinions of experts and the theses of previous students.
CHAPTER 4
RESULTS AND DISCUSSION
4.1. The role of life insurance
4.1.1. Role for each individual and family
Along with physiological needs: the need to eat, sleep, wear, ... necessary for daily life, the need to be protected is one of the important basic needs in every human life. From the worry of "full food, warm clothes" has now changed to "delicious food, beautiful clothes". These needs change with the development of the human world. However, the need to be protected, to be safe to live happily and comfortably is an inevitable need that cannot be replaced by anything.
In the life of each individual and family, there are dreams and plans for themselves and their families. That dream can be the future of children's education, a house with full amenities, traveling here and there or a future of retirement without depending on children and grandchildren when they are old,... However, in life there are always unpredictable risks and they can happen to anyone, at any age, they can be:
- Disease
- Accident
- Early death
- Or even living too long without adequate financial preparation is also a type of risk.
Life insurance is a very effective tool to help each individual and family ensure financial security in the above unexpected situations. Life insurance is not simply to protect against losses when risks occur to customers, although we know that if unfortunately the customer or their relatives encounter risks, for their family nothing can compensate for those losses in terms of material and spirit. However, if there is financial preparation, behind that loss will be somewhat lighter.
And if the customer is lucky enough not to encounter any risks until the contract expires, life insurance becomes a significant savings to help customers and their families realize their dreams and plans, for example:
- Ensure your children's educational future, help them achieve their educational aspirations or have some capital when entering adulthood.
- Ensure future personal and family plans, such as getting married, having children, buying a house, creating business capital, showing filial piety to parents, etc.
- Ensure retirement future: have a financially independent life, travel, qualify for health care, not depend on children, etc.
- Providing medical expenses: When participating in health insurance products, customers can rest assured about: hospital and surgical costs, medical expenses in case of serious illness.
4.1.2. Role in society
For society, on a macro level, life insurance with its role of protecting the financial security of each individual and family contributes greatly to building a stable and civilized society. In addition, life insurance is an effective tool to mobilize idle capital in society to invest in developing the country's economy.
4.2. Research sample information
The thesis conducted a survey of 60 random research samples in Thu Duc district, Ho Chi Minh City through a prepared questionnaire. The survey sample was individuals aged between 22 and 50 years old. These are people of working age and most of them have income, it can be said that in some families they play the role of economic pillars, so they are potential customers of the life insurance market. The survey content mainly focuses on customers' opinions and behaviors regarding participating in life insurance of Prudential Life Insurance Company. Table 4.1 below is the result after the customer opinion survey.