Solutions to enhance capital mobilization at Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch

- Regularly meet and discuss with customers to listen to their opinions and suggestions, grasp the customer policies of other credit institutions in the area, thereby drawing experience for their own operations as well as making timely adjustments based on customer recommendations from the perspective of equality, efficiency and business safety.

- Conduct customer classification to provide investment orientation for each specific customer group.

- Innovate and improve banking equipment, modernize management information systems to be able to provide timely and accurate market signals, thereby developing appropriate capital usage strategies to meet business goals.

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- Regularly strengthen the work of inspection, control, and professional training of credit officers, educate the qualities, ethics, and style of officers, and at the same time arrange and use officers in accordance with their professional capacity and interests, and thoroughly grasp the principles of safety in business.

Implementing these solutions well will improve the efficiency of the bank's operations, the effective use of capital will promote the relationship between the bank and its customers, creating more and more customers for the bank to transact and deposit money in large quantities. From there, contributing to increasing the scale and quality.

3.2.3. Promoting the effectiveness of Bank Marketing strategies

Marketing is an important activity in capital mobilization, including activities such as advertising, promotion, and information dissemination. This is what banks need to do to be able to stand firm and develop in a fiercely competitive market mechanism in the field of providing financial products. In addition to expanding the scope of operations as well as providing information about the banking industry; advertising and promotion in capital mobilization, especially savings mobilization, also have the meaning of propagating the awareness of saving for people, creating a basis for concentrating idle capital sources among the people to implement investment programs and develop the country.

Banks need to be aware of the important role of marketing in general and propaganda and advertising activities in particular, so they have constantly promoted this work, researching and applying new advertising and promotion measures in practice, suitable to people's psychology and interests. Banks need to apply some of the following forms:

- Banks regularly provide information on financial performance, audited financial reports... through mass media so that people know more specifically about the branch's operational capabilities and services as well as the benefits it will bring to customers. This creates a more general and detailed view of the bank's operations for customers, increasing their confidence so that customers can deposit more money.

- Banks should encourage customers to participate in talks and presentations introducing the bank's activities, especially capital mobilization products at agencies, enterprises, schools or on mass media... Thereby making everyone see the advantages of depositing money and using bank services, which are safety, convenience, and profitability.

- In addition, banks need to demonstrate the benefits and advantages of their services. In new areas of operation, where people are not familiar with opening bank accounts, banks should pilot the opening of personal deposit accounts at some agencies and enterprises; Encourage some agencies to open personal accounts for their staff and pay salaries through these accounts for free. If the bank is successful in the pilot, it will not only create trust among the people but also the people participating in this pilot will be the best advertisers for the bank.

- Along with increasing propaganda and advertising, promotions are an effective support tool for propaganda and advertising activities to achieve the highest efficiency, especially when the State Bank is applying interest rate ceilings. To attract more and more capital, banks should apply diverse forms of promotions, creating excitement for customers. Customers not only enjoy interest rates but also enjoy incentives brought by promotions such as: participating in lottery drawing according to book numbers or series, valuable voucher books, applying preferential interest rates or material incentives for customers who maintain regular transactions with the bank such as giving gifts on special occasions (Holidays, New Year, birthdays...), sponsoring cultural and sports movements, doing charity work... to influence and enhance the bank's reputation widely among all classes of people.

Thus, banks need to flexibly and creatively apply the above solutions, which will increase the ability to mobilize capital and at the same time create competitive advantages for banks in all aspects of operations.

3.2.4. Expanding the network of branches and transaction offices

The more the economy develops, the more the workload increases, the problem here is how customers can go to the bank without spending much time. With limited time, it is not enough for customers to complete their work, not to mention spending time to go to the bank, even having to wait a long time for bank staff to complete a transaction (when there are many customers).

To encourage people to deposit money and make more transactions, banks need to save and reduce time for customers through appropriate network arrangement, opening more mobile savings funds to collect deposits at home, or production and business establishments when people request, especially in places where investment projects are implemented in the area to mobilize and receive deposits from residents when they receive compensation from land clearance. At the same time, research to open more branches and transaction counters in densely populated areas and large commercial centers of the city. This will allow banks to exploit capital sources with large volumes over a long period of time, although the initial cost is relatively large. However, the penetration of the banking network and mobile savings desks into the community will contribute significantly to changing people's psychology of preferring to keep and use cash.

3.2.5. Be proactive and flexible in interest rate mechanisms as well as diversify interest and principal payment methods.

Interest rate is a sensitive tool, affecting the scale of capital mobilization as well as the business efficiency of the bank. To mobilize a large amount of capital, it is necessary to have an attractive interest rate policy to attract idle money from the population as well as from economic and social organizations. Banks need to have a differentiated interest rate suitable for capital mobilization terms. Currently, banks mainly apply the form of paying interest in advance and paying interest at the end of the term to simplify capital mobilization. However, to mobilize capital more effectively, banks need to implement more diverse methods of paying interest and principal. In addition, for early withdrawals, interest is still paid at the non-term rate. This method will probably create a disadvantage for depositors, banks should only deduct a fixed percentage on the interest withdrawn depending on the deposit period, or accept to pay full interest if given a certain period of notice. With the above interest calculation method, the branch partly ensures the rights of depositors.

3.2.6. Perfecting banking technology

In banking business, success or failure depends largely on banking technology. Power lies in the hands of banks with privileged information and modern payment systems... Currently, the banking industry has widely used information technology with many modern machines, has a large team of computer experts, creating opportunities to optimally use capital and mobilize more and more resources. To keep up with that pace, banks need to focus on consolidating and perfecting the means to solve all payment needs; switch from semi-automatic to fully automatic forms of some major payment stages. Improve transaction efficiency, serve customers quickly and correctly in the stages of clearing and settlement, operate the interbank market electronically; Strengthen the provision of electronic card services (providing banking services at home, installing ATMs at transaction points), international payments via SWIFT network, and at the same time improve the quality of existing banking services, focus on researching and developing new products and services to meet the growing needs and demands of customers. This will make the branch's non-cash payment work better and better, thereby attracting economic sectors and social classes to open accounts, deposit money and use the branch's payment services. On the other hand, doing a good job of payment will greatly facilitate credit activities by attracting more and more capital to serve lending investment and serve economic development.

Regarding business processes, procedures and documents, it is necessary to improve them to be increasingly simple, shortening transaction time for customers to help make payments quickly and effectively while still ensuring safety, completeness and saving time for both customers and banks.

3.2.7. Training to improve the professional qualifications of bank staff The human factor is of particular importance, deciding the success of a bank's business operations. For capital mobilization activities, human

People are an indispensable factor, deciding the capital mobilization in terms of scale, structure and quality. Because employees are the ones who directly receive deposits, make payments to customers..., it requires the staff to have high professional qualifications, a sense of responsibility in work, a civilized and polite working style, and a scientific way of solving work. Therefore, to mobilize capital effectively, banks need to pay more attention to their staff through

Regular training and coaching to improve the qualifications and capacity of staff in general and staff working in capital resources in particular. Specifically:

- It is necessary to systematically train and retrain staff according to prescribed standards. That is, staff working in capital mobilization must have professional knowledge such as: must be trained in information technology, in non-cash payments... staff must be popularized with basic knowledge about capital, interest rates, foreign currencies... to meet the requirements of increasingly complex work. From there, they can handle all work situations proficiently, answer all questions of depositors, guide them to follow the correct procedures to create trust in customers. This is a factor that affects customers' psychology, when customers feel satisfied, the next time they have money, they will continue to deposit and introduce more customers.

- Recruit, train and retrain, arrange and organize staff to suit their qualifications, be assigned to the right expertise with working style, ethics, labor discipline and passion for the profession to promote the strengths of each staff member.

- It is necessary to equip marketing knowledge for staff, collect and process information, and promptly meet customer needs. Especially for staff who regularly have direct contact with customers, it is necessary to equip them with knowledge so that they can be the best marketing staff, always know how to take advantage of every opportunity to advertise and introduce the bank.

- It is necessary to focus on innovating the customer service style of employees, having an enthusiastic, cheerful, polite, dedicated attitude, knowing how to listen to customers' feedback, having solid professional qualifications and having a fast, accurate, dedicated, thoughtful service style... creating empathy and trust of customers towards the bank, attracting more people to deposit money and use other services of the bank, helping the bank improve its competitive position and expand its market share.

- It is necessary to promote self-training within the bank and within the department so that members can supplement their professional knowledge and that of related departments to support each other and improve work efficiency.

- Banks should have appropriate policies and incentives with benefits and material benefits for staff who have real achievements in banking operations and in capital mobilization in particular.

3.2.8. Expanding the use of personal accounts

With economic development, diversifying forms of capital mobilization is necessary, both to meet the needs of customers in economic transactions and to help banks mobilize all idle capital sources in society. Banks need to expand advertising to help customers understand the benefits of using personal accounts as a modern, convenient, time-saving payment method and to ensure safety and security for customers. In addition, banks need to build and ensure a network of banking organizations to all economic centers, all residential areas, etc., establish an information technology system connecting banks, thereby creating a favorable environment to encourage customers to participate in using personal accounts.

3.3. Implementation conditions to enhance capital mobilization at Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch

3.3.1. For state management agencies

The solution to improve the capital mobilization of banks can only be implemented well if the socio-economic conditions and legal environment are stable, affirming the great role of the State and Government in banking activities.

- Stabilize the macroeconomic environment

The macroeconomic environment includes many factors that cover all business activities of economic entities such as: economic growth, inflation, balance of payments deficit, exchange rate policy... They have a great impact on business activities in general and capital mobilization of banks in particular. To stabilize the macroeconomic environment, the State needs to coordinate with its functional agencies to ensure the regulation of a stable economic development, avoiding sudden changes that abnormally reduce the value of money, especially deposits at banks, regardless of their form. Through controlling the rate of inflation, the State has contributed to ensuring that the purchasing power of money does not decrease, meaning that the real value is stable, making people trust in money, because a person will not hesitate to deposit money in a bank when they believe that after a certain period of time, they will receive an amount of money with a higher value than the previous deposit value. On the other hand, by determining a reasonable exchange rate, foreign currency speculation will be minimized... narrowing the scope of foreign currency operations, expanding the scope of VND circulation, contributing to effectively and accurately controlling inflation, building appropriate interest rates and maintaining monetary stability.

- Creating a stable legal environment

The operation of commercial banks is still within the legal environment prescribed by the State, subject to the regulation of the legal system on banking business, therefore requiring the State to closely coordinate with its competent agencies to build a stable, synchronous legal environment, protecting depositors, meaning that the provisions of the Law, the relevant Code, as well as legal documents equal to or below the current law must ensure that the amount of money customers deposit in banks is preserved and grows. The promulgation of a synchronous and clear legal system will create trust for the people, at the same time, the State's incentive regulations will directly affect the adjustment of the relationship between consumers and savers, shifting a part of consumption to investment, gradually shifting storage in the form of gold, foreign currency, real estate to investment in production, business or depositing money in banks.

- Stabilize social environment

For our country today, capital mobilization by banks is affected by people's psychology, especially the habit of keeping money at home, buying gold for storage, which seems to them to be safer and more convenient because when they need money, they are ready to sell it quickly, but if they deposit it in the bank, it will be inconvenient to withdraw it because of some procedures and paperwork and it is not beneficial because of early withdrawal. Therefore, the State needs to have active measures to encourage people to deposit money and spend through accounts opened at banks, there should be a decision requiring officials of State agencies to open accounts and will be paid through that account... to be able to attract a large amount of idle capital in the population to the bank. In addition, the State needs to have the right economic development policy, thereby improving the lives and incomes of the people so that they can increase their savings and will deposit more and more money in the bank.

3.3.2. For the State Bank of Vietnam

- The State Bank is the agency that makes the national monetary policy with the goal of stabilizing the value of money, controlling inflation, stabilizing the balance of payments and reducing unemployment, contributing to promoting social development and improving people's lives. Therefore, the State Bank needs to implement the right monetary policy, suitable to the actual circumstances of each period to help people feel secure in depositing money in banks. When the economy is stable, the value of money does not fluctuate much and can be controlled, people have a more stable income, they will deposit money in banks with a comfortable mentality, then banks have the opportunity to attract more capital sources to meet the needs

demand for loans and profitable investments. On the other hand, the State Bank needs to focus on and improve foreign exchange management effectively because it directly affects the implementation of the Government's macroeconomic policies and the country's socio-economic life. Only with effective foreign exchange management can the currency be stabilized, the international balance of payments improved, foreign investment attracted, exports supported, economic growth, and inflation controlled. Only then can it contribute to economic development, improve people's living standards, and people will have more money to deposit in banks or create peace of mind for people when depositing money in banks.

- The State Bank needs to strengthen inspection and supervision of commercial banks to improve the business performance of the entire banking sector. In addition, it is necessary to regularly organize, train and foster professional skills for commercial banks so that they can participate in all current business areas as well as apply them in the future.

- Flexibly adjust the required reserve ratio for commercial banks, do not waste the frozen required reserve at the State Bank. The required reserve ratio is one of the important tools for managing monetary policy. This ratio needs to be adjusted regularly and promptly in accordance with the country's development situation in each period.

For commercial banks, the required reserve is a capital of a commercial bank that must pay costs but does not participate in the process of generating profits for the bank. The higher the required reserve ratio, the more the bank's reserve capital increases due to the increased input costs in the total amount that the bank is allowed to lend.

- Have appropriate interest rate policy, adjust interest rate ceiling reasonably in each period.

+ Set interest rate ceilings and fluctuation ranges appropriate for each stage of economic development. Depending on the actual situation of economic growth and banking activities, set a reasonable base interest rate, consistent with the relationship between supply and demand of capital and ensure that commercial banks operate profitably.

+ Regularly monitor interest rates in the capital market and inflation rates in the commodity market to promptly and flexibly adjust so that the nominal interest rate is equal to the real interest rate plus the inflation rate and the nominal capital mobilization interest rate is greater than the expected inflation rate (ensuring positive real interest rates).

+ The State Bank needs to take measures to gradually lower interest rates to integrate with the world interest rate level. From there, it can attract more and more foreign capital sources.

Solutions to enhance capital mobilization at Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch - 8

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