Specific Orientation of Dong A Commercial Joint Stock Bank

+ Dong A Bank - Hue Branch, although developing strongly in the field of consumer lending, has not yet clearly differentiated its customer base to better implement its lending policies. There has not been a market segmentation to be able to develop more optimally, suitable for each separate customer group because the needs of each customer group are different.

CHAPTER 3: SOLUTIONS TO IMPROVE CUSTOMER SATISFACTION

PERSONAL GOODS ON CONSUMER LOAN SERVICE QUALITY AT DONG A COMMERCIAL JOINT STOCK BANK - HUE BRANCH

3.1. Basis for proposed solution

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3.1.1. Specific orientation of Dong A Commercial Joint Stock Bank - Hue Branch

- Promote the bank's strengths in consumer lending to individual customers.

- Building a team of employees with good professional and technical qualifications, responsible and dedicated to the profession, enthusiastic and thoughtful attitude, understanding customer psychology, friendly working environment and good treatment policy.

- Further improve the quality of customer care services, including for customers using indirect services at home.

3.1.2. Objective

- Expand the scale of the Transaction Office, recruit and train, and manage the bank's resources well.

- Increase the number of customers coming to the bank through marketing, promotion on social networks and media.

- Enhance the best customer care, build policies

incentives and gifts to build and strengthen customer relationships

3.2. Solutions to improve the quality of personal loan services at

Dong A Commercial Joint Stock Bank, Hue Branch

3.2.1. Solutions to improve consumer lending processes and policies for

individual customer

From the analysis results, it shows that, besides the achieved results, the process and policy of lending to individual customers still have limitations that need to be overcome. Therefore,

In the coming time, Dong A Commercial Joint Stock Bank, Hue branch, needs to focus on implementing the following solutions:

Firstly, perfecting management policies, general banking procedures and loan disbursement activities of borrowers. This is something that customers have not yet appreciated. This requires banks to reduce procedures, improve the quality of management systems with information systems and internal networks to help work be processed faster, more effectively and accurately.

Second, proactively increase the provision for bad debts, accepting a decrease in profits. This will help the bank quickly offset losses and reduce corporate income tax. At the same time, it can reduce the salary fund but increase the bank's internal financial capacity.

Third, establish a risk measurement, monitoring and control department that is completely independent from other departments and that reports the interest rate risk status directly to the bank's management. The risk measurement, monitoring and control department must be an independent department that does not participate in the risk creation process and has the function of managing, monitoring risks, identifying and detecting risks, analyzing and evaluating risk levels based on established indicators and criteria, and at the same time proposing measures to prevent and minimize risks.

Fourth, the interest rate policy must continue to be built on a flexible basis, suitable for different customer groups and purposes. For industries that are developing strongly in the province, there may be higher loan interest rates for industries that are facing difficulties so that businesses and individuals operating in these industries have the opportunity to access capital and boost their business.

Fifth, the bank's risk management policies and procedures must be clearly defined and appropriate to the nature and characteristics of its business. This is a very important issue that must be carefully considered.

Sixth, mobilize capital with many new customer groups, improve service quality to make customers more comfortable when working with the bank.

3.2.2. Solutions to improve human resource training and development

To improve the quality of staff, Dong A Commercial Joint Stock Bank branch

Hue needs to focus on implementing the following solutions:

Firstly, train, foster and regularly update professional expertise for employees, especially employees dealing with individual customers. Need to have specific, reasonable and scientific transaction processes.

Second, research and survey the banking service needs of areas in the province, from which to propose suitable areas to arrange transaction offices to attract customers. To do this, banks need to calculate the cost of building transaction offices, from which to make choices about the number and scale of transaction offices to be built in the coming time.

Third, the organization of the construction of transaction offices requires a rapid increase in the number of transaction office staff, requiring the bank's recruitment mechanism to keep up with this expansion. The number of newly recruited employees must be trained in the profession and procedures of Dong A Commercial Joint Stock Bank, Hue branch before being assigned to work. Therefore, the recruitment must be carried out earlier than the implementation of the construction of the transaction office, so that the new employees have time to get acquainted with the work.

Fourth, build a policy of motivation and encouragement at work through the process of evaluating employee activities, having reasonable bonuses, as well as a fair promotion policy. This can create motivation and promote the full potential of each employee and help them be satisfied with their work, thereby increasing productivity and higher work efficiency and creating long-term commitment. It is necessary to have a reasonable salary and bonus policy. This method helps reduce costs reasonably to support the increase in bad debt ratio provisioning.

3.2.3. Solutions for investing in facilities and improving collection and processing efficiency

information

In reality, modern facilities and technology applied in the banking sector are especially important. A strong bank is one that has invested heavily in facilities and technology. Facilities and technology determine the quality and satisfaction of customers today because they create many conveniences and safety for customers. Dong A Commercial Joint Stock Bank, Hue branch, needs to focus on implementing the following solutions:

First, build a team of experts to analyze and process information. With personal loan services, banks must have a full basis to accurately assess the customer's ability to pay along with the value of the mortgaged property.

Second, deploy and monitor projects, and regularly organize inspection activities and collect information on production and business activities, and whether the use of loan capital is effective or not.

Third, market research and market analysis are also carried out regularly. Each project needs to have a specific plan for collecting and processing information thoroughly, to avoid gaps in providing customer information that the bank does not know about.

3.2.4. Solutions to improve inspection and control work

Firstly, continue to improve the system of mechanisms, management policies and regulations on banking safety in the direction of applying international principles, practices and standards. Management policies and safety regulations need to create a healthy banking operating environment and create incentives to improve management capacity, especially risk management and to raise awareness of compliance with the law with effective internal management institutions placed in a healthy banking business culture environment.

Second, strengthen market discipline and transparency in banking operations.

Regularly report activities to the bank and have operational supervision.

banks through periodic bookkeeping checks. Avoid the situation where subordinates make mistakes only to discover them after a very long time, causing huge losses to the bank.

Third, strengthen inspection and supervision of risks along with assessment of the bank's compliance with general regulations and the activities of bank employees, along with strengthening sanctions for violations. Build an appropriate internal control system in the interest rate risk management process. Important elements of the internal control system include independent, regular inspection and assessment of the effectiveness of the system and ensure that there are reviews and improvements to the internal control system when necessary.

3.2.5. Solutions to factors affecting the quality of lending services

individual customer

3.2.5.1. Solutions to improve reliability

The level of trust is the factor that has the greatest influence on the satisfaction of individual customers with the quality of consumer lending services at Dong A Commercial Joint Stock Bank, Hue branch. Building trust in the minds of customers is considered the first step to success for the bank, so it should actively enhance customer trust to have an optimal image of prestige in the eyes of customers.

According to the analysis results, when the level of trust increases by 1 unit, customer satisfaction increases by 0.435 units. And according to the average value test results, the factors are rated by customers above average (above value 3) but have not reached value 4. Through the process of internship at the bank, investigation and research, I propose the following solutions: In transactions, credit officers need to ensure accuracy and timeliness, improve the ability to provide services correctly as committed to customers. Avoid cases of providing faulty services, having any errors that upset customers, especially in the first transactions, building a bank image with

Quality in the eyes of customers to retain customers with the bank and at the same time create trust in keeping their information secure is very important. In addition, the bank regularly reviews its service commitment to customers, ensures strict implementation and considers this an important factor in evaluating employees. At the same time, through that, it helps to enhance the reputation at Dong A Commercial Joint Stock Bank - Hue Branch.

3.2.5.2. Solutions to improve responsiveness

Responsiveness is the second factor influencing satisfaction with the quality of personal consumer lending services. Responsiveness shows what the bank can meet for customers,

According to the regression analysis results, when the ability to respond increases by 1 unit, customer satisfaction increases by 0.153 units. At the same time, according to the average value test results, the factors are rated by customers above the average level (above the value of 3) but have not reached the value of 4. Therefore, banks need to have measures to improve the ability to respond, optimally satisfy the needs and expectations of customers such as:

Firstly, simplify the lending procedures, the forms need to be built more clearly, not causing inconvenience to customers, but the bank needs to continue researching to simplify the procedures while still ensuring the correct process. Build facilities and transaction branches on convenient routes to best meet the needs of customers.

Second, maximum support for customers, go to the place to consult and support customers, always listen and find ways to solve problems for customers. This shows that the staff of Dong A Commercial Joint Stock Bank, Hue branch always puts the interests of customers first. It is necessary to pioneer in providing new products and service packages to meet the increasing needs of customers.

Third, internal operations must be quick and decisive, without other factors affecting the overall work. To do this, Dong A Commercial Joint Stock Bank, Hue Branch, needs to optimize the system, build standard but simple and easy-to-understand products and processes so that operations between departments run smoothly. And bank employees are always ready to serve customers.

Fourth, in addition to the advantage of flexible interest rates, banks need to further improve customer satisfaction, specifically meeting maximum customer needs such as time, service quality, etc. Fast loan time will also help improve service quality and customer satisfaction.

3.2.5.3. Solutions to improve service capacity

Service capacity is the professional knowledge and polite, friendly style of the service staff, readiness and especially the quick resolution of customer complaints and questions. Service capacity is one of the important factors to satisfaction with the quality of personal consumer loan services.

According to the survey results, when service capacity increases by 1 unit, customer satisfaction increases by 0.224 units and according to the average value test results, 3/4 factors are rated by customers above average (above value 3) but have not reached value 4. Therefore, banks need to have specific solutions to improve service capacity. Some solutions are given as follows:

Firstly, currently Dong A Commercial Joint Stock Bank - Hue Branch has a human resource with high professional qualifications and professional service style and has been well evaluated by customers. However, the activities to enhance the development and improve the capacity of bank employees are also very necessary activities. To become a good credit officer, it is required to have knowledge in the financial field, master the procedures and regulations of the bank, besides understanding the law such as marriage and family law, land law, enterprise law... Besides, it is necessary to have

Specific Orientation of Dong A Commercial Joint Stock Bank - Hue Branch

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