The friendliness and helpfulness of the bank staff. It also includes the appearance of the bank staff.
outside of bank staff.
Service transactional accuracy (Quality of transactional service - accuracy) Related to the level of accuracy of employees and systems when performing services. For example: the level of errors in transactions and of employees when providing services to customers
Machine service quality This factor focuses on the quality of machinery and equipment. It is related to the reliability of machinery and the level of modernity of equipment.
- Model of Karatepe et al. (2005)
In the research topic “ Measuring service quality of banks: Scale development and validation ” (2005), Osman M. Karatepe, Ugur Yavas, Emin Babakus built a new model to measure the quality of banking services. This is a scale consisting of 4 components of service quality as follows: Service environment, Interaction quality, Empathy and Reliability.
- PACT formula
In customer service, the PACT formula provides several key elements to
customer satisfaction. The PACT formula consists of four key elements:
P: Process: If the process or procedure of actions is well designed and operates smoothly, and focuses on customer requirements, you are meeting their expectations well.
A: Attitude: Organizational members need to have a positive attitude,
work towards meeting customer expectations.
C: Communication: Appropriate communication will help develop
understanding, thereby demonstrating greater mastery and sophistication.
T: Time: plays an important role in determining customer satisfaction. Quick actions are always appreciated more than delays with apologies.
- Model of Kambiz Heidarzadeh Hanzaee and Seyed Alireza Seyed Salehi (2011)
In the study: " A perceived service quality measurement scale in Iran's retail banking market " (2011) by Kambiz Heidarzadeh Hanzaee and Seyed Alireza Seyed Salehi (2011), a banking service quality model was built and tested including 7 quality factors and 25 observed variables including: General quality of process, General quality of output, Skills and behaviors, Accuracy, Diversity of services, Speed and Servicescape (tangibles).
1.2. Related studies
“Service quality assessment” is a fairly familiar topic in recent years. However, due to the importance of service quality improvement activities, this issue is increasingly receiving more attention. The following are some studies by domestic and foreign authors related to this topic.
In the topic " Comparative study of retail banking service quality between 100% foreign-owned banks and Vietnamese joint stock commercial banks " (PhD thesis in business and management by Pham Thuy Giang in 2012), the author affirmed that in reality there are many different sets of tools and approaches to assess service quality. Depending on the industry, field, and geographical area, different sets of tools are selected. The thesis has built and verified a set of tools to assess the quality of retail services of banks through two sets of tools SERQUAL and GRONROSS. It demonstrates the suitability of the tool set as well as each element in the tool set that is meaningful in assessing the quality of retail banking services. The thesis also helps to compare the gap in service quality between 100% foreign-owned banks and Vietnamese joint stock commercial banks. From there, the weaknesses of Vietnamese commercial banks compared to 100% foreign-owned banks in terms of retail service quality are pointed out. In addition, the thesis provides basic solutions to improve the quality of retail banking services in comparison with 100% foreign-owned banks. However, the scope of the thesis is quite wide, so the author of the thesis only conducts limited research on individual customers using retail banking services.
Another topic that also compares the effectiveness of service quality models is the topic: " SERVQUAL or SERVPERF - A comparative study in the Vietnamese retail supermarket industry " - by Nguyen Huy Phong, Pham Ngoc Thuy, University of Technology, VNU-HCM (2007). Based on the comparison of the two models SERQUAL and SERVPERF, the topic has verified and concluded that the SERVPERF scale, although simple, gives better results because when asked about the level of perception, customers often tend to compare between their desires and feelings in their minds to answer the questionnaire. This study, in addition to achieving its objectives, still has some limitations in the survey sample. The survey sample is not representative because it only surveyed customers coming to retail supermarkets in Ho Chi Minh City. Therefore, it is necessary to expand to other localities. In terms of methods, to better measure, evaluate scales and test theoretical models, it is necessary to use more advanced methods such as SEM and more modern tools such as Amos.
In addition to the two topics mentioned above, there are a number of other topics that research service quality such as "Research on the satisfaction of corporate customers with products and services of HSBC Bank, Ho Chi Minh City Branch " - Master's thesis in economics by Do Tien Hoa (2007) or the topic " Service quality of mobile phone networks in Nha Trang City" (Duong Tri Thao and Nguyen Hai Bien). Another topic that is also of great interest is the topic: " Service quality, satisfaction and loyalty of supermarket customers in Ho Chi Minh City " by Nguyen Thi Mai Trang (2006). This study examines the relationship between supermarket service quality, satisfaction and loyalty of consumers to supermarkets. These relationships are tested with 318 customers at supermarkets in Ho Chi Minh City. The research results show that service quality is an important factor in satisfying customers as well as increasing their loyalty to supermarkets. Furthermore, the results also show that age and income factors do not affect the role of service quality on satisfaction and loyalty of supermarket customers. Finally, the author presents the research implications for managers and future research directions. This is a topic that has built and tested a new set of tools to evaluate supermarket service quality in Ho Chi Minh City based on the following multivariate scales: product types, staff service ability, product display, supermarket layout and safety level.
In addition to the research on service quality assessment conducted domestically, the researcher also considered some topics conducted abroad in this field such as the topic: " Measuring Retail Service Quality: Examining Applicability of International Research Perspectives in India " by Subhashini Kaul (2005) or the topic: " Electronic Service Quality Evaluation Methods for Online-Banking System " (Dr. Shapoor Zarei Manager), the study " Dimentions of financial services quality: an overview of the consumer's behavior to be considered in the banking sector" by Dr. Md. Morshed Hasan Khan and "A perceived service quality measuremen retail banking market" by Kambiz Heidarzadeh Hanzaee and Seyed Alireza Seyed Salehi (2011).
In another study “ Measuring service quality of banks: Scale development and validation ” by Osman M. Karatepea, Ugur Yavasb and Emin Babakus (2005). This group of authors has conducted an in-depth study on building a service quality measurement model based on customers’ perceptions of service quality of retail banks in Northern Cyprus. This model consists of four aspects, 20 items including: service environment (four items), interaction quality (seven items), empathy (five items), and reliability (four items).
The above topics, although still have some limitations in terms of applicability to research in Vietnam, are still important documents to help researchers orient their implementation methods and solve the problems posed by the topic.
1.3. Proposed research model
- As introduced, the SERVQUAL and GRONROSS models are commonly used models in assessing service quality. However, the suitability of using this scale for the retail banking market is still an issue that needs further research. Aldlaigan and Buttle (2002), based on the Gronroos model (1984), developed a new model to measure banking service quality, SYSTRA-SQ. This scale consists of 4 components as follows: system service quality, behavioral service quality, transaction service quality (transaction accuracy), and machine service quality. This is a model that is considered quite suitable for assessing
banking service quality. Therefore, the topic will use the SYSTRA-SQ model to
study.
However, SYSTRA-SQ is a model built and tested abroad. Therefore, there will be many factors that are not suitable for the conditions of customers in Vietnam in general and customers at Agribank Huong Tra branch in particular. For that reason, the author will conduct qualitative research to find out the factors affecting the quality of retail banking services in the locality.
From the results of qualitative research, it is possible to summarize the factors affecting the quality of retail banking services as follows: system service quality, behavioral service quality, transaction service quality, reliability and tangible aspects. In which:
The System Service Quality factor measures the technical quality, functional quality, operational capability of the bank as well as the accessibility of the service to customers. This factor includes the following variables: simple and clear transaction procedures, fast transaction time, being provided with full information before the transaction, being advised on transaction forms, easy access to services, always having enough staff during the bank's working hours, having many services suitable to customer needs.
The behavioral service quality factor measures the way bank employees conduct transactions or more specifically the attitude and appearance of the transaction staff. This factor includes the following variables: Bank employees are polite and courteous, bank employees are friendly, bank employees always greet, bank employees dress politely.
The transaction service quality factor measures the accuracy of employees and systems in performing transactions. This factor includes the following variables: all customer transactions are performed accurately, customers are given useful advice, any errors in transactions are detected and corrected quickly, and bank employees inform when the service is performed.
The reliability factor measures customers' perception of the safety of banking transactions. This factor includes the following variables: customers feel safe when using banking services, transactions with bank employees are very trustworthy
Trustworthy, the bank always receives customer feedback, all complaints and questions
Customer concerns are resolved satisfactorily.
The tangible aspect factor measures the quality of equipment as well as the transaction environment conditions of the bank. This factor includes the following variables: airy transaction headquarters, spacious transaction space, adequate facilities, and convenient transaction locations for customers to travel.
For the customer satisfaction measurement model, each author gives
different criteria such as Jones and Sasser (1995); Terrence Levesque and Gordon
HG McDougall (1996), Lassar & ctg (2000). Therefore, to propose a model for assessing satisfaction for the topic, the researcher combined with qualitative research on the manifestations when customers are satisfied with service quality. The proposed model of customer satisfaction includes 3 criteria: customers are completely satisfied with the quality of banking services, banking services meet all customer requirements, customers will continue to use the bank's services.
A 7-point Likert scale from “totally disagree” to “totally agree” was used in the questionnaire. With this scale, a score of 1 is equivalent to “totally disagree”, representing the worst and most unreasonable level, and a score of 7 is equivalent to “totally agree”, representing the best, most convenient and reasonable level. Thereby, we focus on understanding and evaluating customers’ feelings about issues related to the quality of retail services of Agribank Huong Tra Town Branch.
Quality of service system
system
Quality of service
behavior
Quality of delivery service
pandemic
Reliability
Satisfaction of
client
Tangible aspects
Transaction procedures |
Transaction time |
Provide information |
Formal advice transaction |
Access to service |
Fully staffed |
Suitable service |
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Polite |
Friendly |
Always say hello |
Spruce |
Accurate Transactions |
Advice advice |
Correcting mistakes |
Service Notice perform |
Feel safe |
Trusted employee |
Receive information feedback |
Solve problems |
Cool headquarters |
Spacious space |
Full facilities |
Convenient location |
Figure 4: Proposed research model of the topic
CHAPTER II: ASSESSMENT OF RETAIL BANKING SERVICE QUALITY AT AGRICULTURAL AND DEVELOPMENT BANK BRANCH
RURAL AREA OF HUONG TRA TOWN
2.1. Overview of the branch of the Bank for Agriculture and Rural Development in Huong Tra town
2.1.1. The formation and development process of the branch of the Bank for Agriculture and Rural Development in Huong Tra town
2.1.1.1. Introduction to Huong Tra town
Huong Tra town is located in the central part of Thua Thien-Hue province, bordering Hue city. In 2010, Tu Ha town of Huong Tra district was recognized as a type IV urban area. On November 15, 2011, the Government issued Resolution 99/NQ-CP establishing Huong Tra town of Thua Thien-Hue province on the basis of the entire Huong Tra district.
Huong Tra town borders Hue city, Huong Thuy town and Phu Vang district to the East; Phong Dien district and A Luoi district to the West; Huong Thuy town and A Luoi district to the South; Quang Dien district and the East Sea to the North. Huong Tra town consists of 16 administrative units, including 7 wards and
9 communes: Tu Ha Ward, Huong Van Ward, Huong Xuan Ward, Huong Van Ward, Huong Chu Ward, Huong An Ward, Huong Ho Ward, Huong Toan Commune, Huong Vinh Commune, Huong Phong Commune, Hai Duong Commune, Huong Tho Commune, Binh Thanh Commune, Binh Dien Commune, Huong Binh Commune, Hong Tien Commune.
2.1.1.2. Agribank branch in Huong Tra town
Agribank is one of the banks with branches in Huong Tra town. The predecessor of the current branch is the Huong Dien District Agricultural Development Bank, established in August 1976, operating under the Law on Credit Institutions (CIs) of Vietnam. Since the Huong Dien District Agricultural Development Bank changed its name to the Huong Tra Town Agricultural and Rural Development Bank branch, it has become a general state-owned commercial bank operating in the fields of currency, credit and services, the bank serves all economic sectors in Huong Tra town.
Agribank Huong Tra town is a branch under Agribank Thua Thien Hue province. Up to now, after 10 years of innovation since the Law on Credit Institutions in 1997 and the amended Law in 2003 combined with a number of guiding documents being implemented, Agribank Huong Tra town branch has undergone many changes to survive and develop, becoming an increasingly perfect unit, operating effectively, the bank's prestige and position increasing day by day in the town.
Agribank Huong Tra Town Branch operates in very favorable conditions: Huong Tra Town is a dynamic urban gateway to the North of Thua Thien Hue Province, with favorable natural conditions for economic development. In recent years, the socio-economic situation has been complicated, but the socio-economic development of the town has been relatively stable and comprehensive in all aspects. On the other hand, the branch has always received attention from provincial and Party committee banks, as well as local authorities and other organizations.
Besides the advantages, Agribank branch in Huong Tra town also has to face certain difficulties. The interest rates of mobilization and lending fluctuate continuously, affecting the business activities of the bank. Competition between banks is becoming increasingly fierce, especially in the field of capital mobilization. Commercial banks find ways to circumvent the ceiling on interest rates to attract customers, causing difficulties for Agribank in capital mobilization.
2.1.2. Main departments, organizational structure and functions and tasks
2.1.2.1. Main departments and organizational structure
Agribank Huong Tra town currently has 1 head office located at Cach Mang Thang Tam Street (Area 7, Tu Ha Ward, Huong Tra town, Thua Thien Hue province) and 2 transaction offices, namely An Hoa transaction office and Binh Dien transaction office, mainly serving the needs of farmers and small traders in neighboring communes in the town.
Agribank Huong Tra town has 3 functional departments: business department, accounting-treasury department and administrative organization department.
Below is the organizational chart of the Agribank branch in Huong Tra town.
MANAGER
ROOM
ROOM | ROOM | ROOM | ROOM | |||||
DELIVER | DELIVER | TRUST | NEST | PLAN | ||||
PANDEMIC AN | PANDEMIC JAR | USE | FUNCTION ONION | MATHS WAREHOUSE | ||||
Peace | FILL IN | MAIN | FUND |
VICE PRESIDENT
BUSINESS
DEPUTY DIRECTOR OF ACCOUNTING
MATH - TREASURE
: online relationship
: functional relationship
(Source: Agribank branch, Huong Tra town)
Diagram 5: Branch operating organization
2.1.2.2. Functions and duties of departments
- Board of Directors:
Director: is the person who manages and decides on all banking activities, at the same time
Be responsible to the superior bank and the law for all your decisions.
Deputy Director: directly participates in credit work. In addition, the deputy director also acts as an advisor to the director on bank operations and management. The deputy director is authorized by the director to perform certain tasks and is responsible for those tasks.
- Sales department
This is the department responsible for managing the branch's business activities. The department is responsible for planning the mobilization and use of capital for the branch, dealing directly with customers, directly inspecting and supervising the process of capital use and debt repayment according to the credit contract signed between the customer and the bank, developing project programs, appraising projects, selecting effective investment projects, analyzing statistics and data to forecast, prevent credit risks and have measures to handle risks, regularly monitoring reports on the balance of capital sources and capital use, making monthly, quarterly and annual summary reports according to the regulations of the superior bank and the regulations for credit institutions, proposing measures and business strategies for the branch.
- Treasury accounting department:
Accounting department: directly accounting, statistical accounting, accounting for payment transactions according to regulations between banks and between customers and banks; managing customer records, making quick and timely payments, ensuring the safety of assets under the management of the accounting department; making payments, participating in the payment market, deposit market...; developing financial plans, settling revenue and expenditure, settling salaries, providing bonuses and allowances for branch staff.
Treasury Department: manages treasury safety, implements professional regulations
revenue and expenditure, transportation costs and responsible for checking and detecting counterfeit money...
- Administrative department:
This is the department that performs functions related to administrative activities.
of the branch such as receiving, transporting and sending documents, driving, security, ...
- An Hoa transaction office and Binh Dien transaction office
These are two transaction offices under the Huong Tra town Agribank branch. The two transaction offices operate in the assigned area as well as neighboring wards and communes. The two transaction offices are under the business management of the deputy business director, who is fully responsible for the assigned targets from the town branch.
2.1.3. Retail products and services of Agribank branch in Huong Tra town
Agribank is a bank with a great advantage in terms of capital and a wide transaction network compared to other commercial banks. An important customer segment of Agribank is enterprises. However, according to many experts' forecasts, along with economic restructuring activities, the number of enterprises will not increase but may decrease. Therefore, Agribank's wholesale market will have little opportunity to develop further. On the other hand, the trend of retail banking activities is increasingly developing not only in the world but also in Vietnam. Therefore, in addition to focusing on the wholesale market, Agribank needs to pay more attention to the retail market on the basis of expanding its customer base and business network, thereby improving its competitiveness compared to competitors. Currently, one of Agribank's biggest competitive advantages is its brand image, long-term operations and widespread branch system. From these advantages, Agribank has all the capabilities to develop a stronger retail function. It can be said that developing retail activities will help banks have the following basic advantages: reducing risks from credit activities, reducing the burden of risk provisioning and requiring equity capital, etc.
Below are some of the branch's main retail banking products and services.
Agribank Huong Tra town.
2.1.3.1. Lending
Agribank Huong Tra town serves all loan needs of individuals and households to serve the needs of production, business, investment, consumption... with loan terms suitable to the loan needs and repayment ability of customers, loan amounts meeting the actual loan needs of customers, loan interest rates according to Agribank's current interest rates, quick and simple loan procedures.
Currently, Agribank's lending activities are increasingly developing with many forms.
Diverse loan forms, suitable for customer needs such as:
- Loans for purchasing consumer goods and household items: customers are households or individuals with stable income and financial ability to repay debt and need to borrow capital for living needs such as purchasing consumer goods and household items.