Lessons for Military Commercial Joint Stock Bank, Quang Ninh Branch

Techcombank, Thanh Hoa branch is a member unit of Techcombank established under Decision No. 285/QD-NH5 dated September 21, 1996 of the Governor of the State Bank of Vietnam. On July 8, 1998, the Governor of the State Bank of Vietnam issued Decision No. 65/NH-QD deciding to establish Techcombank branch, Thanh Hoa branch (including Thanh Hoa town area) with affiliated branches (according to the attached list, Sam Son and Bim Son). Techcombank branch, Thanh Hoa branch and affiliated branches are organized and operated according to the regulations of Techcombank Vietnam issued in Decision No. 31/NH-QD dated May 18, 1996 of the Governor of the State Bank of Vietnam. Due to the preparation process, on September 1, 1998, Techcombank branch, Thanh Hoa province was officially announced to be established and put into operation. In 2005, Techcombank Bim Son branch separated to operate independently.

Branch's business strategy content

Financial strategy: The bank invests capital focusing on factories, equipment, research and development technology that can reduce costs. For credit growth promotion activities, the bank has carried out activities such as (i). Promoting and developing retail credit, focusing on small and medium-sized banks, individual production and business households, consumer loans, housing loans, installment loans, etc.; (ii). Regularly reviewing, urging, and monitoring loans, ensuring the use of capital for the right purposes, striving for a difference in input and output interest rates; (iii). Developing a plan for credit operations to limit credit risks, meeting the requirements of scale growth while ensuring safety; (iv). The overdue debt ratio is at a reasonable level within the allowable limit. Maximizing the exploitation of customers' collateral and increasing the proportion of outstanding loans with collateral to 70 - 80%; (v). Improve credit quality, measure and manage risks in credit activities and (vi). Continue to promote bad debt handling, collect suspended interest, classify bad debt and make full provision for reserve funds according to the plan assigned by Vietnam Technological and Commercial Bank.

Marketing mix strategy:

+ Mixed promotion: Strengthen the introduction of credit products, promote the Bank's image through building a strong brand. Widely advertise products on mass media.

+ Distribution System: Develop a system of transaction offices, introduce and sell credit packages widely through many channels. Expand the agent system, through agents and transaction offices to provide product information and collect customer information.

+ Product and service development strategy: (i). Develop a diverse, multi-utility banking service system, oriented towards the needs of the economy on the basis of continuing to improve the quality and efficiency of traditional banking services, deploying and expanding modern banking services; (ii). Capture the largest market share with the best service quality according to the motto of serving the entire market but following a differentiated marketing strategy; (iii). Create a breakthrough in service development in both application scale and efficiency through the development of modern, automated banking services, suitable for users' requirements at reasonable costs, focusing on retail banking products and services, improving the quality and general banking services, affirming Techcombank's position; (iv). Innovate business style, proactively approach customers, create demand for products to attract customers and (v). Strengthen cooperation and association with local credit institutions in developing new products based on the principle of both cooperation and competition.

Success of the strategy:

Thanks to the synchronous implementation of business strategies in the area, the annual mobilized capital increased from "10% - 12%"; the efficiency of capital use reached "80%" of the total mobilized capital; the market share of card products increased from "15% -20%; the market share of other products increased from "2% -5%".

1.3.2. Lessons for Military Commercial Joint Stock Bank, Quang Ninh branch

Through the experience of building business strategies of ABbank, Ha Dong branch and Techcombank, Thanh Hoa branch.

To make the bank's business strategy more and more effective, the author draws lessons from the two banks above as follows:

1.3.2.1. About the process of building business strategy

Business strategy is considered as a guideline for the Bank's business activities in a certain period, usually 5 years to 10 years, so it can be considered as the work that determines the success or failure in the Bank's business implementation. From there, valuable lessons can be drawn for the process of building a business strategy for the Military Commercial Joint Stock Bank, Quang Ninh Branch:

First, it is necessary to clearly define the Bank's goals, based on the general orientations from the parent bank, and at the same time, balance the actual socio-economic situation of the area to set clear goals in the coming time. Next, when building a business strategy, the unit's Board of Directors needs to assign specific tasks to relevant departments and individuals: specifically analyze the business environment, internal factors of the Bank, assess the strengths, weaknesses, opportunities and challenges of the unit in the new period to improve core competencies, and implement business activities that are superior to competitors in the area.

The process of building a business strategy must be implemented synchronously at all levels, avoiding half-hearted situations that waste resources on strategies without actually bringing about the desired results.

1.3.2.2. On choosing business strategy

Choosing the right business strategy contributes to the success of implementing the business activities of the Bank Branch: increasing market share, increasing revenue, controlling credit quality well, reducing provision costs, thereby increasing profits.

The selected business strategy must be through the evaluation of scientific models and analytical tools.

1.3.2.3. On implementing business strategy

No matter how good a business strategy is, if it lacks financial and human resources and is not culturally appropriate, it will be very difficult to implement. That's why

Therefore, it is necessary to carefully study the influencing factors before applying. It is necessary to expand the branch network and widely offer credit packages through many channels; organize strict quality management, build and strengthen the ISO quality management system. At the same time, develop a diverse, multi-utility banking service system, oriented to the needs of the economy on the basis of continuing to improve the quality and efficiency of traditional banking services, deploy and expand modern banking services. Regarding human resource strategy, recruit more officers with credit knowledge and experience. On the other hand, the bank carries out strategic structure design; Design control and inspection systems.

CHAPTER 2: ANALYSIS AND EVALUATION OF BUSINESS STRATEGY AT MILITARY COMMERCIAL JOINT STOCK BANK, QUANG NINH BRANCH IN THE PERIOD 2015 - 2019

2.1. General introduction about Military Commercial Joint Stock Bank, Quang Ninh branch

2.1.1. History of formation and development

Military Commercial Joint Stock Bank - Quang Ninh Branch (MB Quang Ninh) was officially opened and put into operation on September 20, 2007, from only 1 transaction point with 17 initial employees. Although it faced many difficulties and challenges in the early days of its establishment, with breakthrough solutions, MB Quang Ninh has become one of the few banks in Quang Ninh province that has always maintained a stable credit growth rate associated with safety and risk reduction. MB Quang Ninh has participated in providing credit to most customers of all economic sectors in the area. After 10 years of construction and development, MB Quang Ninh is proud to be one of the bank branches with strong growth rate every year, achieving many brilliant successes thanks to its comprehensive development strategy in parallel with the development goal for the benefit of the community. Up to now, MB Quang Ninh has a total of 01 main branch and 05 affiliated transaction offices spread across Quang Ninh province.

 Branch office: 156 Le Thanh Tong, Bach Dang, Ha Long City, Quang Ninh

 Bai Chay Transaction Office: 489 Ha Long, Bai Chay, Ha Long City, Quang Ninh

 Ha Long Transaction Office: 328 Nguyen Van Cu, Hong Hai, Ha Long City, Quang Ninh

 Cam Pha Transaction Office: 352 Tran Phu, Cam Trung, Cam Pha City, Quang Ninh

 Mao Khe Transaction Office: 196 Hoang Hoa Tham, Dong Trieu Town, Quang Ninh

 Van Don Transaction Office: 404 - 406 Cai Rong Town, Van Don District, Quang Ninh

With the goal of always innovating to bring value and benefits to customers and prosperity to shareholders - investors, MB Quang Ninh always satisfies customers and partners with synchronous, convenient, quality and competitive banking products and services with professional service style. The road ahead

There are still many difficulties and challenges ahead, but with determination, intelligence and the right development strategy, with the solidarity and consensus of staff, it will be the combined strength and strong motivation for MB Quang Ninh to reach high and fly far to build the image of a " steadfast, trustworthy" MB for customers and society.

2.1.2. Core business resources of the Bank

2.1.2.1. Human resources

As of December 31, 2019, MB Quang Ninh had 107 employees. The bank's labor structure is as follows:

Table 2.1: Labor structure of the Bank over the years

Criteria	2017		2018		2019
Criteria	SL (People)	TL (%)	SL (People)	TL (%)	SL (People)	TL (%)
1	Above university	2	2.2	3	3.1	4	3.7
2	College and University	75	84.3	81	83.5	89	83.2
3	Intermediate, elementary	12	13.5	13	13.4	14	13.1
Add		89	100.0	97	100.0	107	100.0

Maybe you are interested!

Source: Military Commercial Joint Stock Bank – Quang Ninh Branch, 2019

Through Table 2.1 , we can see that the number of staff and employees has changed over the years: 89 people in 2017, 97 people in 2018 (an increase of 8 people compared to 2017), and 107 people in 2019 (an increase of 10 people compared to 2018). The reason is that the bank is expanding its transaction offices, promoting its business strategy of consumer card products and consumer credit packages, mortgage loans for home and car purchases, so it needs to recruit more human resources to serve its business activities. The number of employees with university and college degrees accounts for a high proportion of the current employees (83.2% of employees in 2019) and this number is mainly human resources working at transaction offices. The number of employees with post-graduate degrees accounts for the smallest proportion (3.7% of the workforce in 2019), and these employees mainly serve in the management apparatus.

2.1.2.2. Organization and management apparatus

The organization and management structure of MB Quang Ninh Bank, specifically as follows:

Board of Directors :

The Branch Director is responsible for the overall management of the business and operations of the entire MB Quang Ninh branch. The Service Director is responsible for managing and operating the entire trading floor, General Administration Department, and Support Department. The Deputy Branch Director is responsible for operating the operations of the Personal Customer line of the entire branch.

Customer Relations Department:

Includes 3 management segments: Individual customers, small and medium-sized business customers, large business customers. Acts as a focal point for advising and proposing to the Branch Management Board to develop goals and strategies for corporate customers, business households and individual customers, classify customers; propose customer development policies to expand credit scale and improve credit granting efficiency.

Synthesize and develop the branch's business development strategy in accordance with the environment and orientation of local socio-economic development according to the parent bank's regulations; Develop the branch's short, medium and long-term business plan according to MBbank's business orientation. Perform consulting, appraisal, credit proposal, credit quality management before, during and after lending for customers with needs.

General administration department:

Receive and transfer documents, manage seals, coordinate vehicles for employees on business trips and treasury, manage and distribute office supplies.

Customer Service Department:

Propose and advise the branch's Board of Directors on policies for developing banking products and services; develop a network of agents and transaction offices, improve service quality according to MB's standards; develop marketing plans and promote MB's products and services.

Providing Mobile Banking and Internet Banking products and services, managing and supervising issuance and payment operations according to MB's regulations; managing and supervising the terminal system. Performing cash receipts and disbursements, accounting for payment operations.

money, withdrawal, payment authorization, ensuring the fund balance limit is correct according to the standards of the State Bank and MB for each position.

Provide consultation, introduction and provision of banking products and services. Receive and respond to customer feedback on the use of MB products and services. Handle disputes, complaints and related issues (if any). Directly register, manage records and change customer information on the DFORM system; Be the focal point for working with press and media agencies, carry out marketing, information and propaganda activities according to MBbank's regulations.

Affiliated transaction offices:

The affiliated transaction office performs a number of business fields and operations in accordance with the provisions of law, the State Bank and MBbank, specifically as follows:

Service Director

Deputy Branch Director (Science and Technology)

Private customer room (KHCN)

Major Clients Division (CIB)

Corporate Customer Service (SME)

Cam Pha Branch

Ha Long Branch

Branch Manager

Receive non-term deposits, term deposits, savings deposits, issue deposit certificates, promissory notes, treasury bills and other forms of capital mobilization according to regulations. Grant credit according to MBbank's regulations within the scope of the Director's decentralization and approval; Provide products and services according to MBbank's regulations, except for international payment services; Perform other tasks assigned by the Board of Directors.

Customer Service Department

HTNV Department

Card Customer Service Department

HCTH Department

Customer Service Department

Set

part

Part

Set

part

Part

Customer Service