With the goal of developing a retail bank in which the contribution of toll products will increase and based on the actual needs of the market, TPBank has sought and selected Sun Life Vi
Trang 1NATIONAL ECONOMICS UNIVERSITY
BUSINESS SCHOOL
OPERATIONS MANAGEMENT
GROUP ASSIGNMENT
SERVICE DESIGN OF SUN LIFE INSURANCE SERVICE IN TP BANK
Lecturer: Prof Dr Sanjeev Phukan
Prof Dr Nguy%n Qu Āc Duy
Students: Đinh Hải Đăng - EMBA21026
Phạm Thị Hà - EMBA21003 Cao Minh Hieu - EMBA21004 Tran Thi Tuyet Nhung - EMBA21012
Hanoi, May, 2023
Trang 21 COMPANY PROFILE 2
2 INTRODUCTION 5
3 THEORITICAL APPLICATION FOR SCANING PROBLEM 7
4 CURRENT SITUATION & PROBLEMS IN OPERATION 9
5 SOLUTION FIND OUT 13
6 CONCLUSION 17
Trang 31 COMPANY PROFILE
Company name: Tien Phong Commercial Joint Stock Bank
Type of business: Joint stock company
Line of business: Financial services activities
Date of establishment: 05/05/2008
Head office address: TPBank Building, No 57 Ly Thuong Kiet, Tran Hung Dao Ward, Hoan Kiem District, Hanoi City
Phone number: (84.24) 3768.8998 Number
fax: (84.24) 3768.8979
Website: https://tpb.vn
TPBank is a bank that inherits the strengths of modern technology, market experience and financial potential of strategic shareholders including: DOJI Jewelry Group, FPT Technology Group, Finance Company International Finance Corporation (IFC), Vietnam Reinsurance Corporation (Vinare) and SBI VenHolding Financial Group Pte Ltd., Singapore Tien Phong Bank always aspires
to become a transparent, efficient and sustainable financial institution, bringing the best benefits to shareholders and customers
TPBank has signed an exclusive insurance contract with Sun Life Vietnam since October 2019 Accordingly, Sun Life Vietnam will be the partner to provide exclusive life insurance products for TPBank in the next 15 years
With the cooperation with TPBank and based on the research on customers and products, Sun Life Vietnam will develop specialized products/packages suitable to
Trang 4the bank's characteristics and commit to implementing the following activities offering after-sales service to customers
With the goal of developing a retail bank in which the contribution of toll products will increase and based on the actual needs of the market, TPBank has sought and selected Sun Life Vietnam as the partners to create brand resonance and implementation potential while ensuring the long-term strategic direction of the bank
Sun Life Vietnam is a member with 100% capital of SunLife Financial Group, entered the Vietnamese insurance market in 2013, in which bancassurance is identified as a key and strategic business activity The level of investment and optimal concentration of resources for this Contract signed with TPBank is highly appreciated, because Sun Life Vietnam has not officially implemented bancassurance with any other banks in Vietnam On the side of TPBank, TPBank's 9-month financial statements of 2019 show that the bank's total profit before tax reached VND 2,404 billion, an increase of VND 790 billion, which is a growth of more than 50% compared to the same period last year and is likely to Exceeded annual profit target Total assets of the bank are currently over 154 trillion dong, of which total deposits are over 138 trillion dong, and the quality of the asset portfolio
is evaluated well with a bad debt ratio of only 1.48%
Sun Life Vietnam with a wide range of life insurance offers comprehensive protection solutions for customers Thereby helping customers enjoy life with peace of mind, reducing the financial burden against unforeseen risks in the future Sun Life Vietnam - Helping Customers achieve lifelong financial security and enjoy a healthier life!
✓ Savings insurance
Trang 5✓ Health insurance
✓ Investment insurance
✓ Accident insurance
Outstanding service for customers is the focused strategy
Sunlife's Customer Service department is dedicated to their work All activities of the company focus on improving customer experience and strive to help customers live brighter lives
- Regarding products: it is recommended to deploy simple insurance products with bank-specific characteristics, such as the following products:
Additional products for the bank's products:
* Credit balance life insurance
* Insurance for loans
* Insurance for savings
* Health insurance and human accidents
Insurance products that banks do not have:
* Whole life insurance, mixed insurance, recurring payment insurance…
Trang 62 INTRODUCTION
Service design plays a critical role in the operation management of TP Bank, particularly in the provision of its life insurance service As a financial institution that provides insurance products to customers, TP Bank recognizes the importance
of designing its services to meet the specific needs and preferences of its customers The service design process for TP Bank's life insurance service involves
a systematic approach to designing and delivering insurance products that are tailored to the unique needs of customers, including the identification of customer needs, the development of insurance offerings, the creation of insurance delivery processes, and the testing and refinement of the service design By focusing on service design, TP Bank can improve customer satisfaction, reduce costs, and achieve long-term success in the competitive insurance industry
The service design process can offer several benefits for the life insurance service
of TP Bank By designing its services in a way that meets the specific needs and preferences of its customers, TP Bank can improve customer satisfaction and loyalty, enhance operational efficiency, and maintain a competitive edge in the insurance industry
One of the primary benefits of service design for TP Bank's life insurance service
is the ability to create insurance products that are tailored to the unique needs and preferences of customers Through the service design process, TP Bank can identify the specific features and benefits that customers are looking for in a life insurance product and develop offerings that meet these requirements This can lead to increased customer satisfaction and loyalty, as customers are more likely to choose TP Bank's life insurance products over those of its competitors
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Trang 8Additionally, service design can help TP Bank to improve its operational efficiency
by identifying and eliminating inefficiencies in the insurance delivery process By streamlining its processes and reducing costs, TP Bank can offer more competitive pricing for its life insurance products and improve its profitability over the long term
Finally, service design allows TP Bank to stay flexible and adaptable to changing customer needs and preferences By constantly evaluating and refining its life insurance service design, TP Bank can ensure that its offerings remain relevant and competitive in a rapidly changing marketplace
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Trang 93 THEORITICAL APPLICATION FOR SCANING PROBLEM
By the document of Russell and Taylor, named “Operations and Supply Chain Management” Service design monitoring or scaning problem process in operations management applied for TP Bank’s service as below:
Identify the customer needs and wants: This step involves doing research to gain a deep understanding of the target customers Banks can use a range of methods, such as customer surveys, focus groups, and analyzing customer feedback to uncover customer needs and wants This information should include demographics, behavior, preferences, motivations, and pain points
By understanding the customer's needs and wants, banks can design a service that meets their requirements
Define the service concept: Based on the customer needs and wants identified, the bank can define the service concept This involves outlining the services that the bank will offer, identifying the unique value proposition
of the service, and determining how the service will be delivered Banks should consider their target market segment and ensure that their service concept aligns with their overall business strategy
Develop the service blueprint: The service blueprint is a detailed plan of the service delivery process that outlines all the stages involved in delivering the service The blueprint includes the physical and digital touchpoints involved
in delivering the service, the technology used, employees, and customer interactions Banks should use the blueprint to identify any potential bottlenecks that could disrupt the service delivery process and to identify opportunities for improvement
Train employees: Once the service blueprint is developed, the bank needs to train its employees in delivering the service This involves providing them
Trang 10with the skills, knowledge, and resources required to deliver high-quality and consistent services Training should cover customer service, service delivery channels, and technology, and should ensure all employees can handle customer complaints effectively
Implement the service: Once the service blueprint is developed and employees are trained, the bank can implement the service This involves putting the necessary processes and systems in place to deliver the service This could include implementing new technology, redesigning service delivery channels, and reorganizing the workflow to optimize the service delivery process Banks should ensure that their systems and processes are aligned with their service concept and service blueprint
Monitor and evaluate the service: After the service is implemented, banks need to continuously evaluate its effectiveness This involves gathering feedback from customers, analyzing service reports, and capturing data on service metrics such as wait times, customer satisfaction, and service quality Banks should use this information to identify opportunities for improvement, optimize the service delivery process, and ensure that the service meets the evolving needs and wants of their customers Evaluation should be an ongoing process, and banks should be ready to adapt their service as the market and customer needs change
By following these steps of designing a service, we will find out the problem in TP Bank life insurance service and propose the solutions
Trang 114 CURRENT SITUATION IN OPERATION & PROBLEMS
Internal Operation Process
- About how to sell and introduce products: Choose to sell through bank staff and only sell through the bank's branch systems as well as through employees of the insurance business sitting at the bank Research some other distribution channels such as telemarketing, internetbanking
- About regarding training for bank staff: Propose a simpler and more concise program, covering the nature of insurance products, insurance selling skills, rights and obligations of insurance agents Bank staff training programs are shorter than traditional agent training programs Training methods should be flexible, which can be online, centralized, or remotely, in line with the needs and operational characteristics of banks
- About commission: There should be a more attractive commission payment mechanism for the insurance affiliate model Paying commissions to the bank or its representative signing a cooperation agreement with the insurer and not paying commissions to each bank employee
The Situation
One of the characteristics of bank-linked insurance products is group insurance products Currently, the regulations on group insurance commission payment are not fair compared to individual insurance products, which is also a point that discourages banks as well as bank employees from using their time working time
to introduce and sell insurance products With the above solutions, along with the initiative of each insurance business, the efforts of the management agencies, the cooperation of the banks, this will certainly be an effective distribution channel, contributing to market development
Trang 12After the recent cases, we need to review regulations to standardize relevant personnel such as insurance agents and consultants Insurers need to review internal policies and procedures as well as review the network of insurance agents and consultants
There are 3 main reasons leading to the phenomenon of metamorphosis as before Firstly, objectively, the financial market and securities in particular face difficulties while insurance carries investment fees Along with that, the contract with customers to invest accounts for 85% As such, many insurers have gone astray Second, the law is not strict with both the seller and the buyer The seller repeated
it 1 or 2 times, but the customer did not read it carefully Then when they don't do
it, they start to sue each other
The subjective problem is that the quality of our insurance staff's advice is not good Somewhere there is also pressure on revenue, running after sales Insurance knowledge is complex Currently, insurance buyers also have problems Because the insurance buyer doesn't know what our purpose is? What do we buy insurance for? For hedging risks or accumulating for future children or profitable investment Finally, the compliance in participating in the contract of the insured is not high Even if it is difficult to understand, customers should also read the chapter, the most important item is related to the level of compensation, the time to participate
in insurance
Regarding the implementation the internal service process of Sunlife's life insurance products at TPBank, there are some root problems that lead to the current situation as follows: