Strengthening the expansion of the network of correspondent banks globally as well as establishing branches in Singapore, Russia, representative offices in the US, and upgrading and expanding the operations of the Vietnamese financial company Vinafico in Hong Kong, further developing international banking services, meeting the increasing needs of domestic and foreign customers.
To achieve the set goals, from now until 2010, the Bank for Foreign Trade of Vietnam strives to maintain its leading position in terms of capital, especially foreign currency capital in the Vietnamese banking system. The capital strategy must be able to cope with the challenges of the establishment and operation of the stock market, of Vietnam's integration process and financial activities in the international arena.
In the past, although the Bank for Foreign Trade of Vietnam has maintained its strength in terms of capital, the scale of this capital has not yet met the requirements of the country's industrialization and modernization process. Many national projects will need foreign currency capital from hundreds of millions of USD or more. The Bank for Foreign Trade of Vietnam must be the leading bank in providing capital for large projects, for key economic sectors and organizations of the state. Compared to banks in the region and the world, the total current capital of the Bank for Foreign Trade of Vietnam is still very small. Therefore, strengthening its strength in terms of capital in the future is a prerequisite for the Bank for Foreign Trade of Vietnam to maintain its position as the largest leading commercial bank in Vietnam in the next decade.
With the orientation of expanding credit for small and medium enterprises, the Bank for Investment and Development of Vietnam (BIDV) has increased capital mobilization in VND, improving the structure of foreign currency and VND capital. In addition, due to the lack of development of the financial market, the Bank for Investment and Development of Vietnam (BIDV) needs to take on the role of medium and long-term lending. Therefore, the accumulated capital also needs to increase in both scale and maturity, to ensure stability in the capital used for lending, thereby limiting risks for the bank.
The plans set out to develop capital mobilization activities of NHNTVN in the coming years are:
Maybe you are interested!
-
Solutions to enhance capital mobilization at Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch - 9 -
Solutions to enhance capital mobilization at Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch - 8 -
Solutions to enhance capital mobilization at Dong Trieu Branch of Investment and Development Bank - Quang Ninh - 4 -
Solutions to Perfect Marketing Policy in Capital Mobilization at Joint Stock Commercial Bank for Industry and Trade, Binh Dinh Branch in the Coming Time -
Solutions to increase capital mobilization at Vietnam Foreign Trade Bank - 13
- Continue to develop existing capital mobilization methods such as corporate deposits, residential savings, interbank deposits, issuance of promissory notes, bonds , etc.
- Strengthen existing relationships with domestic and foreign banks. Borrow foreign capital in the form of capital funding, import-export funding, credit limit loans...
- Prepare conditions for participation in the stock market, increase the ability to mobilize medium and long-term capital. Train highly qualified staff to perform brokerage tasks and directly trade securities.
- Strive for an annual growth rate of mobilized capital of 15% to 18% on the basis of diversifying capital mobilization forms.
- Consider the success of banking operations to be derived from the performance of all customer segments. The fluctuations of the economy and the performance of customers are always the heartbeat of the bank. Therefore, it is necessary to have attractive customer policies to increase the deposit sources of economic sectors. Promote technological progress, expand the form of opening personal accounts, paying by plastic cards, and withdrawing money automatically via ATMs to attract idle capital from all social classes into the bank.
Based on the orientation and plan for capital mobilization, NHNTVN has established a number of capital mobilization targets up to 2010 as follows:
- Growth target of capital mobilization from the population by 2010: average annual growth rate is 30 - 40%. Savings deposit balance by 2010 reaches about 54,000 billion VND, accounting for over 40% of capital mobilized from market 1 (residential market and economic organizations).
- Growth target of capital mobilization from economic organizations: it is expected that in the coming years when economic activities become vibrant again, this capital source will increase at a rate of about 10%/year. By 2010, this capital source is estimated to reach about 80,000 billion VND, accounting for nearly 60% of capital mobilized in the market 1.
- Growth target for capital mobilization from the interbank market: it is expected that by 2010, the deposit balance of credit institutions at the Vietnam Bank for Agriculture and Rural Development will reach 8,000 billion VND.
II. SOLUTIONS TO IMPROVE CAPITAL MOBILIZATION EFFICIENCY AT THE BANK FOR FOREIGN TRADE OF VIETNAM
The Vietnamese economy in general and the banking industry in particular have undergone strong changes in recent years. Vietnam is considered by international organizations and investors as a promising country in the region in the coming decades. This has led to a series of foreign organizations and investors investing in the Vietnamese market in all areas of economic development. Therefore, domestic enterprises need to improve their competitiveness to maintain and promote their position in the domestic market. Realizing this, Vietnamese commercial banks in particular are also making great efforts to increase capital, modernize banks, and expand operations to counter the increasing competitive pressure from foreign enterprises.
Increasing capital mobilization is a prerequisite to maintain the position of a leading state-owned commercial bank. Based on the analysis and prediction of the country's economic development situation, determining the expected capital mobilization rate of the domestic and foreign markets, correctly assessing its strengths and weaknesses in the context of many types of banks operating together, the Vietnam National Commercial Bank needs to have solutions to increase capital mobilization on the principle of "stable capital growth, mobilizing both its own financial resources and external resources, increasing the mobilization of term capital and VND capital to improve the capital structure." Therefore, the thesis would like to propose
Propose some solutions to improve the efficiency of capital mobilization for NHNTVN as follows:
1. Solution for NHNTVN
Promote marketing to attract customers to deposit money
The mission of banking activities is to attract a large number of customers from each population class with different income, psychology and interests, so the application of Marketing principles in customer relationship management to banking business activities is very important. It is a business strategy to link and coordinate people with communication skills with optimal processes and modern technology to balance 2 benefits: the profit earned by the bank and maximum customer satisfaction.
However, in reality, not only NHNTVN but also other commercial banks in Vietnam have not done well in Marketing. Marketing is not only needed for capital mobilization, but also plays an important role in all other services of the bank and these services will support each other to develop together. Therefore, to do well in Marketing, NHNTVN needs to implement the following measures:
- Establish a specialized Marketing department at the Head Office. This department is responsible for advising the Board of Directors in planning the Marketing strategy of the entire system. This department is the focal point for collecting and processing information from the domestic and foreign environment to develop Marketing plans for the entire system. This is also the focal point for developing public relations, building brands, and building the culture of NHNTVN. At branches and member units, specialized Marketing departments may not be established, but at direct business departments such as credit departments, international payment departments, and customer transaction departments, it is necessary to arrange staff to directly do Marketing work. Activities of the specialized Marketing department, of the professional departments at the Head Office and of
Member units need to be closely linked and complement each other through institutionalizing marketing activities with regulations, rules and processes throughout the system.
- Promote propaganda and advertising widely on mass media to create a prestigious image of the Bank in the public. Advertise and popularize banking services, forms and policies on capital mobilization, attracting deposits ... so that the public knows about those services. In fact, at some transaction points, many customers are using the deposit attraction and capital mobilization services of the Bank but do not know all the benefits of those services. Therefore, in the immediate future, the Bank should diversify the types of leaflets, books and newspapers available at the transaction counter to help customers learn more when coming to make transactions.
- Well-organized customer care department, making customers feel respected and satisfied every time they come to make a transaction. This department has the function of guiding customers to declare information for the first time, answering customers' questions, consulting, introducing the bank's products and services to customers to help customers feel most satisfied when choosing a type of service for themselves. Moreover, this department is also responsible for building the transaction culture of NHNTVN. That culture is expressed through the style, civilized and polite attitude of the retail staff, and the unique uniform of NHNTVN.
- NHNTVN needs to build a team of professional Marketing staff, invest more in product advertising, understand customer needs, especially deposit needs. Because the deposit needs of different customers are very different, it is necessary to research carefully before launching a new form of capital mobilization, to avoid the situation of launching without meeting the actual needs of customers. Therefore, the bank needs to conduct market and customer segmentation to reasonably identify the target market and customers, thereby building strategies.
appropriate business strategy. For example, for customers who need to deposit savings, most of them are middle-income earners, often interested in interest payments, so it is possible to apply forms of participation in rewards. For customers who deposit large amounts of money, they are often interested in service attitude, the benefits they receive, so the bank also needs to focus on meeting these different needs.
- NHNTVN also needs to publish financial information so that people as well as economic organizations or other credit institutions can easily access and grasp the overview of the bank's business operations to attract more customers to the bank. This is also an effective and inexpensive marketing measure to mobilize capital by taking advantage of and promoting the strengths of NHNTVN, which has always been the most prestigious bank in the Vietnamese market.
- Furthermore, to successfully implement Marketing activities in the Bank, in addition to the specialized department, all Bank staff must participate. The Bank must focus on regularly training Marketing skills internally, especially the counter staff, those who directly contact customers. The understanding and dedicated service of the staff is the most effective advertising method, with the lowest cost, creating a good image of NHNTVN in the eyes of customers.
Promote investment in completing and modernizing banking technology in a synchronous manner.
Implementing innovation and modernization of technology for Vietnamese commercial banks in general and the Vietnam Bank for Agriculture and Rural Development in particular is an urgent requirement. This is clearly stated in the document of the 9th National Congress of the Party '' ... modernizing and innovating banking technology, accelerating the application of information technology, striving for the banking and financial system to reach the average level of the region ... ''
In order for the quality of capital mobilization activities of NHNTVN to meet international requirements and standards, technology must be constantly improved, modernized and upgraded to become a powerful support tool for bank employees. In addition, choosing the right technology to apply in the management and business activities of the bank is decisive for the development of service activities, increasing the scale of mobilized capital in a stable manner and deciding the efficiency of investment capital.
As we know, technology is the foundation for developing new products, especially non-cash services. Diversifying banking services by applying advances in modern technology will save costs on a product and individual products will be linked to form a "continuous service" to tighten the interests of customers and banks. In particular, strongly developing payment services, ensuring the provision of services with many utilities, fast, convenient, accurate and secure is always a factor attracting customers to open deposit accounts ... thereby increasing capital mobilization sources. At the same time, fast payment also saves capital circulation time, reduces the amount of money in circulation, from which banks will have a large source of capital.
Therefore, with the tradition of being a leading bank in the field of technology in Vietnam, NHNTVN needs to continue to invest and modernize technology to standardize and modernize the bank's operations according to international standards, improve the operation of the management information system, develop products and services on a technology platform, ensuring safe development when the scale of operations is expanded in both breadth and depth. To develop and perfect technology, NHNTVN needs to take the following steps:
- Standardize the customer information system including many different data sources, form a data bank, serve the purpose of exploiting information when there are transactions related to customers. Enhance the exchange of information with customers through the network, through websites, need to
Early development and completion of a 24/7 information network to monitor activities in the currency market, especially activities in the interbank market. On that basis, NHNT will strengthen remote management to help avoid risks for the bank while maintaining relationships with good, traditional customers and expanding relationships with new customers.
- Complete the wide area network, connect online the internal networks of all branches in the NHNTVN system to all areas with telecommunication conditions. In addition, the internal network must be standardized and unified throughout the system, ensuring a good interface with the national payment system. NHNTVN also needs to develop and fully exploit the internet and intranet to collect information for administration, business and operation, and conduct business operations via the internet.
- Increase investment and development of modern transaction and payment channels such as ATM, Telephone Banking (banking transactions via telephone), Internet Banking (banking transactions via computer network). Upgrade and ensure accurate, timely and safe operation of card payment network, SWIFT network to serve the payment needs with large capacity. Currently, in the world, international banks have switched to using chip card technology, which is much more secure than magnetic card technology. Therefore, NHNTVN needs to soon upgrade existing card technology, put chip cards into use.
In expanding the ATM network, the State Bank of Vietnam should research and invest in installing new generation ATMs that allow deposits through the machine, avoiding being left behind when foreign banks enter the market.
In the process of implementing banking technology modernization solutions, NHNTVN needs to pay attention to the following issues:
- In the process of investing in equipment and installing software, it is necessary to focus on implementing more thorough network security solutions. The issue of ethical risks