Techcombank's International Transaction Volume and Revenue, 2007 - 2010

STP is an evaluation indicator that shows the standard process of a telegram in an international payment transaction at a bank. To achieve a high STP indicator, the bank must determine in-depth evaluation criteria such as: processing transactions in a short period of time, avoiding waiting for customers when participating in transactions, clearly reflecting the accuracy in the circulation and processing of contracts, and thereby, bringing customers the highest possible satisfaction with products and services.

Table 2.11 shows the STP evaluation criteria of Techcombank. If STP is within the range of 90% - 100%, then that bank has the standard telegram rate or the bank has the most standard payment process. In 2010, STP in Techcombank's international payment activities was 99%. This number is truly remarkable, and affirms Techcombank's leading position compared to other commercial banks in Vietnam in international payment activities.

Table 2.11: Evaluation of STP index of a commercial bank

Source: Techcombank Payment Center's International Payment Activity Report Accuracy in transaction processing

Percentage of money transfer orders in international TT that are formatted with absolute accuracy

Determining the correct format of money transfer orders shows the ability of a bank to analyze money transfer orders. From the formatting activity, the bank will successfully execute the money transfer order, thereby accurately executing an international payment transaction. It shows the quality and capacity of the bank's international payment activities. It objectively reflects the criteria when evaluating the development of a bank's international payment activities such as: reflecting the development of support services such as science - technology, foreign currency supply activities. Table 2.12 shows the assessment when considering the ratio of correctly formatted money transfer orders.

Table 2.12: Evaluation of correctly formatted money transfer orders

Source: International payment activity report of Techcombank payment center

Always identifying international payment as one of its leading activities, Techcombank has set a relatively high target for itself when determining the rate of international payment transfer orders that must be formatted 100% accurately.

Standard electricity rate

The standard electricity rate is the percentage of the number of times a standard electricity order is correctly executed to the total number of standard electricity orders that the bank has executed in a year.

The standard electricity rate partly reflects the criteria for the development of support services from information technology exploitation activities that the Bank applies to support and develop its international payment activities. Table 2.13 shows the assessment when considering the standard electricity rate indicator.

Table 2.13: Evaluation of the standard electricity rate of a commercial bank

Source: International payment activity report of Techcombank payment center

In 2010, Techcombank set its standard electricity target at only 95%, but with the efforts of the entire center and the help from the board of directors, the payment center achieved 99% of the standard electricity rate.

Indicators on the development of services supporting international trade activities

The installed computer system can automatically process: This is an evaluation criterion that is not only applicable to international payment activities but also to many other areas of Techcombank's operations. However, international payment activities require a very high level of quality and modernity of science and technology, due to the characteristics of international payment activities requiring a high level of

High accuracy, short processing time. Currently, when Techcombank provides Techcombank Visa international payment card, the demand for modern technology is even higher.

In addition, TCB not only won the award for Bank with excellent international payment activities but also won the award for Bank with high and modern application of science and technology, creating very reasonable mutual support, helping international payment activities develop easily.

3.3. Evaluation of the development of international payment activities at Techcombank

3.3.1. Advantages in developing Techcombank's international payment activities

Firstly, Techcombank has extensive customer relationships with many domestic and foreign banks, which creates great favorable conditions for the development of international payment activities. Up to now, the Bank has had correspondent relationships with nearly 200 countries in the world. In particular, Techcombank is highly appreciated by major banks in the world such as Citibank, Wachovia, The Bank Of New York... This proves that the Bank's reputation is increasingly enhanced in the international market and in the hearts of customers, helping the Bank gradually penetrate the international market and gradually expand its international payment services.

Second, Techcombank is one of the banks applying modern technologies in the financial sector - banking in Vietnam. For example, from 2007 to 2010, upgrading the core banking software system from version T24.R6 to the latest version T24R10 opened up the ability to connect with new applications to better meet business requirements; processing electricity, transmitting information to process international transactions within the bank and with customers quickly, accurately, and conveniently. Or investing in a solution to automate the process of processing and appraising credit applications for customers (LOS - Loan Origination System) provided by the leading IT solutions company - Exeprian in 2010 will provide customers with professional and fast banking credit services equivalent to the standards of international banks.

The success in applying modern science and technology to serve the development of Techcombank and the Payment Center in particular and contributing to the development of the national economy in general, has been recognized when Techcombank was honored to receive the title: "large enterprise effectively applying information technology in business activities" awarded by the Ministry of Information and Communications.

Third, a team of good staff, most of the staff of the International Payment Department have university degrees, English proficiency, and are proficient in using the Swift network with banks around the world. The style of dealing with customers is dedicated, civilized, polite, ready to guide customers to resolve any problems in the drafting and signing of contracts or advise customers on the terms of the letter of credit so that it is most beneficial for customers.

Fourth, the Payment Center builds and issues international payment procedures suitable to Techcombank's reality.

 To further standardize the document checking work, a particularly important part of international payment operations, the payment center has researched and released a new Checklist, regulating document checking standards based on the revised ICC Uniform Customs and Practice for Documentary Credits, effective from July 1, 2007 (UCP 600).

 The international payment process that was implemented in 2008 was no longer suitable for the actual international payment operations at Techcombank, so in December 2010, the international payment department coordinated with the international payment project leader to revise and release a new process book, detailing and specifying each payment method, and more suitable for the actual T24 Corebanking software. R7.

3.3.2. Problems in developing Techcombank's international payment activities

Firstly , in international payment activities, Techcombank currently provides many products and services such as payment by money transfer, collection, payment

L/C payment, but new products recently applied such as: revolving L/C payment, red clause L/C payment, back-to-back L/C payment, ... customers still do not know or are still hesitant, and do not trust to use. Meanwhile, the needs of customers are still not fully met.

Second , although the payment process has been improved, cutting out many annoying intermediary steps for customers, the coordination between security departments is still not synchronized and smooth, leading to the time it takes to suspend customers' files being prolonged and time-consuming.

Third, the Payment Center at the headquarters is currently operating like a Back Office but in reality should operate like a Trade Finance Department. The Center only stops at supporting and coordinating other departments to handle related operations; but has not really approached, consulted or supported customers during the transaction process. Meanwhile, it is the International Payment specialists who understand and know best about International Payment products and services, and can give the best and most suitable advice to customers.

Fourth, although, in recent times, TCB has continuously invested and researched to upgrade payment technology, system errors or slowness still occur frequently. For example, although the core banking software T24 has been continuously improved, due to the large amount of data, along with simultaneous access by employees, the system is often slow or inaccessible, affecting the processing of customer information.

3.3.3. Causes of those problems

3.3.3.1. Objective causes

Trade and non-trade barriers in many world markets cause difficulties for Vietnamese exports: Especially the recent anti-dumping lawsuits in