This is a common practice among commercial banks around the world but has no precedent in Vietnam.
Through the development of NHBL services, it has contributed to promoting development.
economic development, economic transformation
economic structure
Maybe you are interested!
-
Current Status of Retail Banking Services Development -
Criteria for Evaluating the Development of Commercial Bank's Banking Services -
Forecast of Vietnam's Economic Development and Demand for Banking Services in the Coming Years -
Vietcombank Retail Banking System Products - Vision 2010 (Vcb- Vision 2010) -
Experience of some countries in applying information technology to develop retail banking activities and lessons for Vietnam Joint Stock Commercial Bank for Industry and Trade - 12
in a modern direction. The development
Developing banking business activities plays an important role in mobilizing resources in society to serve investment development, create jobs, and increase people's income. Bank credit will play an important role in developing and transforming the economic structure towards modernization, promoting the development of industrialization and modernization of the country. Strongly developing banking services will promote economic trade, increase the speed of capital circulation and international economic integration. On the other hand, developing banking services will contribute to changing the consumption habits of economic entities, from the habit of using cash mainly to using products, services, and non-cash payments, contributing to creating a healthy and sustainable economic development.
3.3.2. Limitations in developing retail banking services at Vietnam Joint Stock Commercial Bank for Industry and Trade and the causes
3.3.2.1. Limitations
Although important results have been achieved in developing NHBL services, the limitations of these services at Vietinbank are increasingly evident, which are shown in the following aspects:
Banking products and services in general and NHBL services in particular are still poor, the structure of products and services is not reasonable, the quality of services has not met the increasing needs of customers. The list of NHBL services is not large enough in quantity and not diverse in structure: Types of NHBL products and services are still poor, monotonous, many service markets
potential has not been fully exploited. Vietinbank's products and services are still limited and monotonous, mainly credit services, domestic and international money transfer payments, and guarantees. In recent years, some services applying modern technology such as card services and electronic banking services have been deployed. However, the number of card types is small, only a few cards have been issued: ATM, international credit cards, EPartner cards, and the card's usage is not versatile. The development structure between service types is not reasonable: Credit services, a service that requires large capital investment and high risk, have the largest income proportion in total income (over 90%), while income from intermediary services, off-balance sheet services that require small capital investment and low risk account for too low a proportion (average 5%). Banks in developed economies have a proportion of income from intermediary and off-balance sheet services of up to 50%. The service market for individual customers (the main target for developing NHBL services) is very large, but has not been exploited much. According to the experience of commercial banks in developed countries, targeting the private customer sector is a potential and effective field, but Vietinbank has not invested much to develop this market:
Number of personal deposit accounts and personal payments through the system
Vietinbank, as the author mentioned above, is still very low, card payment services, ATM, insurance, home services, and electronic banking are still developing at a rudimentary level. The quality of Vietinbank's products and services is still limited, not creating a competitive advantage in the market. Modern services have not met the needs of customers (the process is still complicated, the communication level of the staff is not professional...).
The IT system is not yet compatible with domestic commercial banks and is outdated compared to foreign commercial banks. Vietinbank is a leading commercial bank in technological innovation, actively investing in developing a relatively synchronous internal network system. However, due to the long investment process and low investment capital, the information technology system is not really synchronous; besides
next to that system
technology system
Information of domestic commercial banks is not
compatible with each other, thus not creating the overall strength of the whole system.
Domestic commercial banking system has not yet best met customers' needs.
The card system and electronic banking services are not yet linked to the payment system of the entire bank, so when using card products and
service
electronic banking
Although the operation is quick, if done
Transferring money or paying with other payment accounts is slow.
The qualifications of banking staff are still limited and do not meet the requirements.
requirements of economic integration process
international. Number
number of staff
belong to
Vietinbank is currently quite large, approximately 19,000 staff, however, there is still a situation where there is a surplus of staff but there is still a shortage of people who can really meet the job requirements and the needs of developing banking services. A large number of staff members belong to the old generation, now approaching retirement age, slow to access new technology, limited English proficiency, and are being encouraged by Vietinbank to retire early to make room for young staff members, who are well-educated and fully equipped with the necessary knowledge.
3.3.2.2. Causes of limitations
The conditions of the socio-economic environment, people's living habits; the legal environment still has many shortcomings, the low level of economic development has not really supported the development of NHBL services. Vietnam is a country with a large population, a large number of people of working age, however, due to the origin of the economy as an agricultural country, in the process of industrialization and modernization, the socio-economic environment creates habits of people and small and medium enterprises with the habit of using cash, afraid to use banking products and services, this is the biggest and most basic obstacle to the process of popularizing NHBL services to people in the country. The legal system and legal documents have been reviewed, edited and improved many times but there are still many shortcomings, the handling of
Asset management to recover debts for banks is still too cumbersome and disadvantageous for banks, creating a mentality of reluctance to expand products to people and businesses.
Not paying due attention to the banking service sector; there are no specific measures to develop banking services commensurate with the inherent advantages and potential of Vietinbank. The strategy for developing banking services has been built and is being gradually implemented, however, the implementation is still slow, and there are no banking products and services that bear the identity of Vietinbank. Therefore, the results obtained from the banking service sector, especially the non-credit service group of Vietinbank in recent years are still very modest and not commensurate with the inherent potential and advantages of Vietinbank.
Has not trained and developed a team of professional staff in the field of NHBL. People are the decisive factor for success, especially in the field of NHBL, it is extremely important and necessary. However,
staff
general and staff
in the field of NHBL today
lack of professionalism and not meeting the development requirements of the international economic integration process. In order for the NHBL service activities to develop strongly and gain the trust of customers when using products and services, Vietinbank needs to build a team of staff from the grassroots to the headquarters.
competent, knowledgeable, basic
regime
business processes, understanding culture
Vietinbank and work hard for the colors of Vietinbank.
The bank's organizational model is not really customer-oriented and the organizational structure is not in line with international standards. In recent years, Vietinbank has actively restructured its organizational model in the direction of delimitation by scale and customer segment, aiming to best serve the diverse needs of customers and towards international standards. The current organizational model is moving towards centralized management and strengthening
The head office's inspection and supervision functions, most of the credit facilities
The application and credit limit for customers are all controlled and approved by the head office departments. This helps to limit risks before lending, but due to the large number of applications submitted to the head office, there have been cases where customer applications are not processed in a timely manner. The risk management and re-evaluation department is concentrated at the head office, at the branch there are only customer departments (individual customer department and corporate customer department), transaction offices perform the tasks of finding customers, appraisal
and provide information about
pillar
Head office review and approval, except
In case the credit facility has a low risk level (such as pledging a savings book, valuable papers of Vietinbank...) or is within the judgment level according to the decentralization of the head office. At both the head office and branches, there is no debt management department according to international standards, but only a department to manage problem debts (debts from group 2 to group 5).
The network is too thin, mainly domestic, not yet
global. With a network widely distributed in most countries
province, city
above all
As of December 31, 2013, Vietinbank has: 164 branches
branches, more than 1000 transaction offices/savings funds, 1589 ATMs, 30,000 domestic transaction POS and branches abroad (02 branches in Germany and 01
branch
In Laos, Vietinbank is one of the commercial banks with the largest number of
amount of expenditure
branches and transaction offices are the most in Vietnam today (second only to
Agribank). However, compared to world-class commercial banks such as HSBC, ANZ..., Vietinbank's network is still very modest. In order to meet the requirements of international economic integration and strive to become a regional-scale financial and banking group, Vietinbank must also promote the development of its network system not only domestically but also internationally, in order to promote Vietinbank's products and image globally.
The technology platform and application of modern technology in retail activities are not yet good. Banking service activities, especially banking services, are still weak.
Automatic banking requires very high requirements for the bank's information technology system, the requirements for the information technology system in retail banking activities are to be processed quickly, accurately and with a high level of information security. In recent years, Vietinbank has actively invested in upgrading the core banking system and integrating applications for card services and electronic banking and has achieved initial successes. However, compared to the requirements for developing Vietinbank to become a regional financial group, the information technology system needs to be invested in a much more synchronous and powerful way to meet the requirements.
The products and services are not yet packaged and synchronized; the combination of cross-selling products is not much. Vietinbank's banking products and services in recent years have been invested in research and development, quite rich and diverse, with the goal of targeting customers mainly individuals and households such as: consumer loans, home loans,
car loan, stock advance loan, loan
financial proof, student loans, card products and electronic banking services... but in general, the products are still individual, there are very few package products and services, and in general, the procedures are still quite cumbersome and complicated.
Chapter 4
MAIN DIRECTIONS AND SOLUTIONS
TO PROMOTE THE DEVELOPMENT OF RETAIL BANKING SERVICES AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE
4.1. ORIENTATION FOR DEVELOPMENT OF RETAIL BANKING SERVICES AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE TO 2020, WITH A VISION TO 2030
4.1.1. Domestic and international context affecting development
service
retail banking
at Joint Stock Commercial Bank
Public Part
Vietnam Trade
After the global financial crisis in 2007, with the collapse of many famous financial names, the world's financial and monetary system has not yet escaped from the difficulties but continues to drag along unpredictable consequences such as: the public financial crisis of many countries in Europe and America; the deflation of the real estate market in many countries in the world, including Vietnam. Vietnam's economy is also in the context of a prolonged decline, the real estate market is frozen, the banking and financial system is in need of restructuring for development, the stock market cannot develop, many businesses that have not achieved their capital mobilization goals on the stock market have proactively requested to withdraw from the floor or are forced to withdraw from the market due to not meeting the prescribed conditions.
According to the commitment to open the market dic
financial services,
State Bank
outside will enter
Vietnam financial market
Men are more flexible and get
scent
g rules
national hero
price on many
field
. Add to
measure, work
trade liberalization
and head
this is the end
work
formation of foreign financial intermediaries such as
one
request
objective. Strong integration into the WTO and to
This is the TPP Agreement, a bilateral agreement with the EU, which will bring to the economy.
economy
Vietnam in general and the financial system in particular are very
profit
but
not much
especially in the dark
h system of cards
Din
death in Vietnam
Nam is at a low level.
about technology,
organizational and professional level
vu,
strength
h fight
weak, mechanism
unsolved
Heaven
, especially on inspection,
family
bad debt ratio
in the banking system has not been
treatment
dike.
Beside
can
h, c
thing
perseverance
on technical infrastructure, macro environment, structure
Din
mechanism
law
phaṕ
and the market to cope with the
shot
inside (like change)
unwanted
about
first
investment and savings
in the population, the breakdown of the system
banking information), as well as external shocks (framework)
happy
economic, political
picture..) when opening the saw
public financial market
Han
will be a security risk
total
side
crab area
Vietnam financial market
South.
now
next door
work
capacity building
family
sat, cuc
cradle
crab pot
member of the market
school, or place of worship
Gon
is
microscopic, time-consuming
Heaven
high energy
family
macroscopic
round
g. Life
area
happy
the financial crisis is ongoing
on pham
micro
bridge
the more you show
mind
important
crab
capacity
family
macro
for the financial market
In order to absorb the increasingly advanced scientific and technological achievements of developed countries and not be left out of international development, developing countries like Vietnam must strive to integrate into that general trend. International economic integration is a correct and important direction, a premise for building Vietnam's position in the international arena, while also bringing many opportunities for sustainable economic development. However, international economic integration also puts Vietnam in front of great challenges, especially in the field of banking and finance in general and Vietinbank in particular. International economic integration creates many opportunities and challenges for the development of Vietinbank's services, namely:
* About opportunities for developing NHBL services
International economic integration creates pressure to promote innovation and reform of the Vietnamese commercial banking system in general and Vietinbank in particular, promoting the overcoming of