The quality of customer service in sacombank ha noi branch,graduation thesis

STATE BANK OF VIETNAM BANKING ACADEMY FACULTY OF FOREIGN LANGUAGES GRADUATION THESIS THE QUALITY OF CUSTOMER SERVICE IN SACOMBANK - HA NOI BRANCH Supervisor : Nguyen Thi Thu Tran

STATE BANK OF VIETNAM

BANKING ACADEMY FACULTY OF FOREIGN LANGUAGES

GRADUATION THESIS THE QUALITY OF CUSTOMER SERVICE

IN SACOMBANK - HA NOI BRANCH

Supervisor : Nguyen Thi Thu Trang (MA) Student name : Nguyen Hoang Phuong Quyen Student Code : 16A7510126

Class : K16-ATCC Course : 2013-2017

Ha Noi, May 2017

STATE BANK OF VIETNAM

BANKING ACADEMY FACULTY OF FOREIGN LANGUAGES

GRADUATION THESIS THE QUALITY OF CUSTOMER SERVICE

IN SACOMBANK - HA NOI BRANCH

Supervisor : Nguyen Thi Thu Trang (MA) Student name : Nguyen Hoang Phuong Quyen Student Code : 16A7510126

Class : K16-ATCC Course : 2013-2017

Ha Noi, May 2017

DECLARATION

I declare that this thesis is my own research with the guidance of MA Nguyen Thi Thu Trang and all the contents of the study, the results of this topic have been honest and unpublished in any form in any other degree of the University before The figures in the tables, which serve for analysis, comment, and evaluation are collected from variable sources which have been stated in the reference section

If any fraud is detected, I bear full responsibility for the contents of my graduation thesis

Hanoi, May 2017

Nguyen Hoang Phuong Quyen

ACKNOWLEDGEMENTS

This graduation thesis was written in English For Finance and Banking program

at the Faculty of Foreign Languages, Banking Academy of Viet Nam

First and foremost, I would like to express my sincere gratitude to my beloved instructor as well as supervisor, Ms Nguyen Thi Thu Trang (MA) of the Foreign Language Faculty- Banking Academy of Viet Nam for her enormous support and guidance during the whole research process Not only has she offered enthusiastic instructions, helpful lessons but also zealously assisted me in the draft of the research with importantly valuable advice my study Without the enthusiasm of instructions, all

my harvest would hardly be completed

Additionally, I would like to thank all the lecturers at Banking Academy of Viet Nam, especially those of Foreign Language Faculty for valuable lessons for my study path since the first year of university

I would also like to send my deep appreciation to staff of Sacombank for providing me with favorable conditions and guidance during my internship time

Last but not least, I wish to send the grateful thanks to my parents and my friends for their love, countless support My family have always unconditionally provided and assisted me both financially and mentally My friends have also encouraged me and provided me a number of valuable instructions as well as suggestions to accomplish my thesis

ABSTRACT

Customer satisfaction is significantly necessary to the growth of the bank during the integration period, it has been the main concern of many banks in the harsh offering services competition in banking industry Most of banking services are closely related to direct customer interaction; therefore, they endeavor to maximize the quality

of customer service Indeed Customer service is the method to identify the customers' demands, thus, the sufficient dealing with their needs and preferences by offering prompt and high- quality services, products would bring profound changes to the image of bank in general and its profitability in particular The study presents a great understanding of customer service quality in Sacombank Viet Nam in general and

Sacombank - Ha Noi Branch in particular

By using qualitative research method, the study analyses main products offered

by Sacombank - Ha Noi Branch, releases merits, and demerits of each product, makes analysis on achievements and drawbacks of the branch From that, the paper suggests practical solutions and recommendations for the Government and the State bank of Viet Nam for better management as well as for operational improvement and better customer services at Sacombank - Ha Noi Branch

LIST OF ABBREVIATIONS

Stock Bank

LIST OF FIGURES AND TABLESFigures/

Figure 2.2 Organizational structure of Sacombank - Ha Noi Branch 20

Table 2.3 Main business operation of Sacombank - Ha Noi Branch 21

Table 3.1 International payment and foreign currencies trading in 2015

Table 3.2 The status of the quantity of cards opening until 2016 26

TABLE OF CONTENTS

DECLARATION i

ACKNOWLEDGEMENTS ii

ABSTRACT iii

LIST OF ABBREVIATIONS iv

LIST OF FIGURES AND TABLES v

PART A INTRODUCTION 1

1 RATIONALE TO THE RESEARCH 1

2 OBJECTIVES OF THE STUDY 2

3 SCOPE OF THE STUDY 2

4 METHODOLOGY OF THE STUDY 2

5 SIGNIFICANCE OF THE STUDY 2

6 STRUCTURAL ORGANIZATION OF THE STUDY 3

PART B DEVELOPMENT 4

CHAPTER 1: THEORETICAL BACKGROUND 4

1.1 Definition and features of commercial bank 4

1.1.1 The concept of commercial bank 4

1.1.2 The concept of commercial banking activities 5

1.2 The concept of customer and the psychology of customers when purchasing commercial banks’ services 6

1.2.1 Definitions of customer 6

1.2.2 The psychology of customers when purchasing services 6

1.3 The quality of customer services 7

1.3.1 Definition of customer services 7

1.3.2 Types of customer services 11

1.3.3 The constitutions of customer services 12

1.3.4 The role of customer services and principals contributing to effective customer services 14

1.3.5 Principals contribute to effective customer services 15

1.4 Summary 17

CHAPTER 2: OVERVIEW OF SACOMBANK VIET NAM AND

SACOMBANK - HA NOI BRANCH 18

2.1 Brief introduction of Saigon Thuong Tin commercial joint stock bank of Viet Nam 18

2.1.1 Introduction of Saigon Thuong Tin commercial joint stock bank of Viet Nam18 2.1.2 The business of Sacombank Viet Nam 19

2.2 The overview of Sacombank - Ha Noi Branch 19

2.2.1 Organizational Structure of Sacombank - Ha Noi Branch 20

2.2.2 Types of business operation of Sacombank - Ha Noi Branch 21

2.3 Summary 22

CHAPTER 3: THE REALITY OF CUSTOMER SERVICES 23

3.1 Business generalization at Sacombank - Ha Noi Branch 23

3.2 Situation of business at Sacombank - Ha Noi Branch 23

3.2.1 International payment and foreign currency trading 23

3.2.2 Automatic bank services 25

3.2.3 The right product at right price 28

3.2.4 The satisfaction of demands and passions of customers’ issue 31

3.2.5 Product improvement issue 32

3.2.6 Human factors 33

3.3 The Assessment of customer services of Sacombank - Ha Noi Branch 35

3.3.1 Achievements 35

3.3.2 The shortcomings 36

3.3.3 Reasons 37

3.4 Summary 38

CHAPTER 4: SOLUTIONS AND RECOMMENDATIONS FOR CUSTOMER SERVICES 40

4.1 Development orientation of Sacombank Viet Nam and Sacombank - Ha Noi Branch 40

4.1.1 Development strategy of Sacombank Viet Nam 40

4.1.2 Development orientation of Sacombank - Ha Noi Branch 41

4.2 Solutions to improve the quality of customer services in Sacombank - Ha Noi

Branch 42

4.2.1 Developing and deploying customer services strategies 42

4.2.2 Enhancing the quality of human resources 43

4.2.3 Clearly defining the target of customer service in Sacombank - Ha Noi Branch 44

4.2.4 Implementing successful methods of world banks 47

4.3 Recommendations 48

4.3.1 Recommendations to the Government 48

4.3.2 Recommendation to the State bank 49

4.3.3 Recommendations to Sacombank Viet Nam 49

4.4 Summary 50

PART C CONCLUSION 52

REFERENCES 54

PART A INTRODUCTION

1 RATIONALE TO THE RESEARCH

It is undoubtedly recognized that customer service plays a crucial role in improving the competitive advantage of commercial banks Banking services help banks differentiate the image quality of their services in the minds of customers, maintain customers, increase customer’s loyalty, attract potential customers, and reduce business costs for banks Customer service is a critical activity in the marketing activities of commercial banks in order to guide the management of their activities on customers and to provide satisfaction for customers

Customer service in banks plays an essential role because banks are distributing nearly the same products, often only appeared small differences in interest rates, clients; except few banks having their own strength In addition, the current competition between banks is not only products, but also service accompanied with their products, known as the quality of customer services

Currently the banking industry in Vietnam is witnessing a growth at rapid speed, with an increasing number of local and foreign banks have been established With such fierce competition, in order to help commercial banks survive and grow, one of the factors must be clients, which is the most important asset of any enterprise, and is particularly crucial for banking sector in particular If banks want to conquer customers, they necessarily have to provide efficient customer services and turn customer service from a mandatory job into competitive advantages of banks Therefore, through this service, banks can know accurately the type of customers, their expectations, and their experience with bank as well as the staff, thereby determining the shortcomings that they need to overcome Besides, with this service, customers can rapidly and more easily contact the bank and be clearly cleared the information up about requirements such as interest rates, loan procedures, and disbursement time

The major weaknesses of Vietnamese Commercial Banks in general and Saigon Thuong Tin commercial joint stock bank in particular are the restrictions on service quality and customer care During the integration period, they do not totally see customers as the center, the customer services offered are not professional and the requests ‘addressing processes of customers are still quiet complex Sacombank needs

a creative innovation in thinking and acting to improve customer service by using modern methods and the theory of quality management for customer service, applying information on customer management

By looking at overall perspective, the researcher has decided to select this title

for the thesis: “The quality of customer services in Saigon Thuong Tin Commercial

Joint Stock Bank – Ha Noi Branch” The topic, hopefully, could draw a clearer

picture of the quality of customer services of Sacombank and contributes recommendations as well as measures to assist banks in improving their services

2 OBJECTIVES OF THE STUDY

Customer service and quality of customer service are broad issues, the principal objective of the research is to pay attention to the quality of customer services on the Sacombank - Ha Noi Branch and takes practices of this branch as evidenced Additionally, the thesis also offers several recommendations in relation with future improvement in customer services

3 SCOPE OF THE STUDY

The thesis is aimed at quality of customer service on Sacombank - Ha Noi Branch, where the researcher has a chance of having investigation during the internship All of the numbers, figures and data collection are assembled with the permission of Sacombank

4 METHODOLOGY OF THE STUDY

The thesis has used quantitative research method, which are statistics, comparison, analysis, graph illustrations In the study, the secondary data also have been used for the purpose of research process completion The theories and definitions

of the field have been quoted from external sources, including textbooks, articles journals on the internet A number of studies on customer service quality by Vietnamese and foreign researchers have also taken into consideration For this research, the study has used the combination of dialectical materialism, inductive method, and synthesis

5 SIGNIFICANCE OF THE STUDY

In the current context of raising a great number of banks, the study would offer

a closer look into advantages and drawbacks of customer service quality at Sacombank

- Ha Noi Branch Through this research, Sacombank Vietnam, the government and authorities could draw useful lessons on practical measures for customer services improvement at Sacombank - Ha Noi Branch in particular as well as at commercial banks in general

6 STRUCTURAL ORGANIZATION OF THE STUDY

Apart from the Introduction and Conclusion, the thesis is divided into three main chapters as follows:

Chapter 1: Theoretical background of customer services in commercial banks Chapter 2: Overview of Sacombank Viet Nam and Sacombank - Ha Noi

Branch

Chapter 3: Reality of customer services at Sacombank - Ha Noi Branch

Chapter 4: Solutions and Recommendations to upgrade the customer services at Sacombank - Ha Noi Branch

PART B DEVELOPMENT

CHAPTER 1 THEORETICAL BACKGROUND

In the first chapter, I will review theories of commercial banks, banking business activities, banks customers and factors determining customers’ choice Then, bank customer services are defined, categorized, and analyzed according to possible benefits they offer to commercial banks By the end of the chapter, factors that contribute to effectiveness of bank customer services are informed

1.1 Definition and features of commercial bank

1.1.1 The concept of commercial bank

Bank is a financial intermediary institution, which plays a crucial role in the economy The meaning of bank is possible through its functions and services, or the role that it performs in the economy In the modern market economy, financial institutions such as securities trading companies, commission houses, and insurance companies are trying to offer banking services On the contrary, banks are also diversifying products through the provision of a great deal of new services, including land brokerage, credit brokerage, insurance activities, and the investment in mutual funds That led to the formation of diversifying concepts of commercial bank

As stated in Law on Credit Institution (2010), the fourth article: “Commercial bank means a type of bank which may conduct all banking operations and other business activities under this Law for profit”

Accordingly, commercial bank is a type of bank or credit institution in which

“Bank means a type of credit institution which may conduct all banking operations under this Law Based on their characteristics and operation objectives, banks include commercial banks, policy banks, and cooperative banks”

Additionally, this Law also differentiates banks from non-bank credit institutions as “Non-bank credit institution means a type of credit institution which may conduct one or some banking operations under this Law, except taking deposits of individuals and providing services of payment via client accounts Non-bank credit institutions include financial companies, financial leasing companies, non-bank credit

The business of commercial banks

Capital mobilization Capital investment Financial service

• Payment and budget

• Entrustment, agency

institutions”

1.1.2 The concept of commercial banking activities

Business activities of commercial banks mainly are in the fields of capital mobilization, credit activities, services investment According to Somashekar, N T (2009), the commercial banking overview was clearly reflected in the following diagram:

Figure 1.1: The business of commercial bank

(Source: Somashekar, N T (2009) Banking New Delhi: New Age International)

Firstly, capital mobilization is known as one of the main business of commercial banks to address “input”, which means the funds settlement for the business of banks Secondly, credit is the core business of commercial banks Currently, this transaction has occupied from 60% to over 80% of commercial banks’ assets Additionally, investment activity: In Viet Nam, securities have not broadly released, securities market has witnessed an initial establishment, and development, therefore the investment banking operation is still restricted Last but not least, services form that commercial banks offer are increasingly becoming diversified and extended

1.2 The concept of customer and the psychology of customers when purchasing commercial banks’ services

1.2.1 Definitions of customer

The market economy honors customers as a vital position, which is God Customers are those that choose the products and services of the bank and individuals whose enterprises are dealing with They are the crucial and decisive factor of the product output If Tom Peters viewed customers as "property increasing value," Peters Drucker (2006), the father of administration business said that the company's target is

"customer creation" In other words, without customers, enterprises would have to face difficulties in products and services consumption

As a result, customer identification is a huge question for banks that directly influences service quality policy, thereby determining the existence and development

of banks The perception without customers, there would no longer be any banks existence, has proofed the role of customers in all business activities Especially in financial and banking sector, once customers are considered as kings, they should be given priority By increasingly attracting more customers, banks would promptly and easily overcome other competitive banks Customer is the top target of the bank, thus, the main purpose of bank is satisfying customers’ demand based on the mutual benefit This satisfaction would bring the existence, profit, and development of the bank

Along with those values, customer is an effective communication instrument The more customer base bank has, the less money it has to spend on marketing and advertisement It can be affirmed that “bad news has wings” is the most effective advertisement method since the satisfied customers would tell others about the excellent services that bank offers, which is more inestimable value and reliable than anything that bank develops through the mass media Otherwise, for unsatisfied customers instead of complaining to the bank, they would choose other banks’ services

1.2.2 The psychology of customers when purchasing services

According to Rosenbluth (2010), several factors influence customers’ psychology when they choose services that banks offer including:

1.2.2.1 The expectation of receiving good customer services

When using services, customers’ goals are the efficiency, quality and benefits that bank offers They always expect products and services to meet their needs For instance, when using money transfer services, customers always want their money to

be transferred safely and quickly

1.2.2.2 The expectation of receiving sincere respect

Banks normally have a number of different clients, but it is significant to give priority to their customers despite the interruptions by another customer The improvement of customer services’ quality is based on the philosophy of "putting customers at the center position", making them become vital persons

1.2.2.3 The expectation of getting friendliness and attention

When interacting by face-to-face communication, phone communication or by the Internet, customers want to receive the friendly responses As a result, the employee needs to equip communication skills, professional expression, and friendly voice The friendliness of the staff is also depicted with smiles, eye-contact and gestures The quick and efficient reception attitudes of bank staff to customers would

generate clients’ confidence, which directly enhances loyal and potential customers

1.2.2.4 Expectation of dynamic and flexible bankers

Customers always want their claims about products and services to be done quickly and efficiently They do not look forward to the answer "No" or "This work has not completed" However, banks’ staff does not always have to do exactly things customers want The greater flexibility and dynamism the employees are in the communication and implementation of requests, the more customers’ belief that banks could occupy

1.2.2.5 Expectation of additional services

During the process of using the products and services that banks offer, customers always need their supports, including product usage assistance, the questions in the course of using the product Accompanying services will increase value to the products

1.3 The quality of customer services

1.3.1 Definition of customer services

In the economics, service is normally a kind that is similar to the goods but

immaterial According to Philip Kotler (2010), service is defined as “any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything Its production may or may not be tied to a physical product” In general, the service is activity of human creativity and is the specific characteristic operation of human in the dynamic society, there is a superior competition, with the appearance of technology boom, transparency of legislation and transparency of government policy

Customer service is often known as the enthusiastic, courteous, and friendly welcome to clients of service staff This is an incomplete thought as , customer contact service is only a part of customer service in commercial banks The concept of client service, which is most commonly used, is all the provision that necessarily needs to satisfy customers’ demand and expectation In other words, it could be defined as the assistance in the way clients wish to be served to improve the level of customer satisfaction or to retain them

There are also numerous definitions, among them, according to Capon the author of the book Marketing in the 21st century Management (2012), customer service is a series of activities, implementation or information that a party launched to foster enterprises relationships for offering brands and customers Other author views

“Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation." (Turban, Lee, King, & Chung, 2002)

According to Doctor of philosophy Nguyen Van Thanh (2008), service quality

is customer’s satisfaction level in the clients’ experience process, it is the overall service of enterprise bringing benefits and fully satisfying expected value of customers

in production supply area and service distribution in output Service quality would be divided into two types: Technical quality and Functional quality Technical quality embraces value that customers virtually receive from service being provided

Consequently, customer services need to be closely related to quality factors since quality of services is not only evaluated in output compared with expected value

of customer but also in the operation of entire supply system as well as distribution style Quality of customer service is determined by the customer, not by the vendor-seller Steaming from crucial viewpoint, there is a service quality gap model which is

an extension of Parasuraman et al (1985) that identifies seven core discrepancies or

Execution of design/delivery specs

3 Delivery Gap

Customer interpretation of communications

gaps relating to management perceptions of service quality, and tasks related to services offered to customers

Figure 1.2: Seven Service Quality Gaps

(Source: Parasuraman, A., Zeithaml, V and Berry, L (1998) SERVQUAL:Amultiple-item scale for measuring consumer perception of service quality Journal of Retailing)

1 Knowledge Gap is the difference between things that the provider believes

customers’ belief and their actual expectation The main goal in this gap is to bring information into action as well as to deeply understand customers’ demands

2 Standards Gap is the gap of administrator’s perception between customers’

expectations with quality standards set for the transfer service

3 Delivery Gap is the discrepancy between the specific transfer standards and

the practical suppliers’ implementation of those standards

4 Internal Communications Gap is the difference between enterprise’s

advertisement, the thought of sale staff about product features, service quality and which companies actually capably supply

5 Perceptions Gap is the gap between the reality transferred and which

customer supposedly receives

6 Interpretation Gap is the difference between enterprise’s media efforts and

which customers think would be have from this communication

7 Service Gap is the discrepancy between the customers’ expectation of things

they would get and their cognitive feelings about the service provided

The intense concern of customer service is to build the sustainable relationship with customers and diverse market segments ensuring a long-term relationship which would be able to exploit new market opportunities

According to Parasuraman, Valarie A Zeithaml, Leonard L Berry (1998), there are about ten key factors influencing service quality Firstly, reliability is the most important element which initially complies with function, offers the promises that could graph customers’ trustworthy Secondly, responsibility is the enthusiasm or willingness to provide rapidly services by staff Thirdly, the capacity requires employee requiring employee to have necessary skills and knowledge to deal with clients Fourthly, the assessment is that customers could easily approach, with accurate opening hours and precise waiting time The fifth factor is the polite, respectful, courtesy, and friendly behavior that the staff shows to customers Moreover, it is the staff’s communication to customers including the listening comprehension to customers’ opinions, communication adjustment for various customer groups Seventhly, the reliance is viewed as the honesty, reliability, and reputation of the business with individual incivility Additionally, the safety is the point that customers would feel safe in both physical and financial factors with customer confidentiality security service, for instance Beside that, clients’ empathy is the effort of caring and

finding out customers’ demands and keeping in mind and creating individual attention, specific requirement that appropriates with each client, recognizing frequent customers and loyal enterprises Last, ‘tangible’ is is the physical evidence of the services, facilities and equipment, the appearance of staff and the physical symbol of service

1.3.2 Types of customer services

According to Zeithaml et al (2009), one of the important bases for categorizing customer services is the time Therefore, customer services could possibly be divided into three stages including before buying a product or service, while choosing and after purchasing service

1.3.2.1 Period-before-using services

Customer service in this period is conceptualized as activities that help customers in making decisions to choose services Different forms of advertising, ways of personal transaction are performed to provide information about the product

as well as the delivery location to customers Advertising is a popular method and banks often promote advertisement through media channels such as newspapers, television, radio, posters, and the Internet Besides that, personal transactions are direct transactions between a banker and a customer including the introduction and supply of transactional staff through a dialogue, persuasion, and telephone conversation Direct staff’s transactions are not only the opportunity that bank could quickly gather feedbacks from customers, but also even customers could grasp, understand deeply about banks - the basis of trust

Bank can implement direct marketing method, which is the use of various means to establish and expand direct communication between the bank and customer Diversified methods of direct marketing are sending letters; sending flyers; sending introductions to banks and new products to each customer; broadcasting on radio, television, telephone; organizing customer conferences as well as sponsorship activities

1.3.2.2 Period-while-using services

Customer service factors that need to be studied at this stage are the time from the moment customer signs the contract with the bank to the time the service is provided; the reliability of service offering; the demand satisfaction for emergency

services upon request; the notice of delay in service provision; facility provision to customers in the purchase of banking products Product consultancy should meet the customers’ needs, the answers of all customer inquiries and professional knowledge of bankers are also expected

1.3.2.3 Period-after-choosing services

This stage includes the following types including customer service consultancy; complaints treatment when there are problems arisied from the using services process; new products and services consultancy and new products diversification At each period, customer services play an equally essential role with the mutual support and complement If customer care in a period does not meet the demands of customers, it cannot be appreciated well

1.3.3 The constitutions of customer services

According to Nguyen Cong Binh (2009), there are three key factors determining customer satisfaction, which means client service has fully met all three factors, including the product elements; the convenience factor and the human factor

1.3.3.1 Products

The product is one of key factors making up the client services of the bank Through advertising channels, or directness in consulting teller which are known as product marketing step, the bank introduced its products and services The information

of services utility transmitted to the customers directly influences clients’ customer service repurchase By getting the figures up-to-date or considering social development trend or investigating, surveying market, customer service department could deeply know the demands of clients According to Peter Drucker (2006), who has been regarded as the most important business administrators in the 20th century view the quality of services is not what people do It is what customers demand If banks can do like Peter Drucker’s viewpoint, they would positively achieve positive results

1.3.3.2 Convenience

Currently, customers have taken entrusted in simplification, convenience when purchasing banking services The convenience of dealing with customers nowadays has not only based on physical facilities, but also times saved for clients through

varied forms of technology applications such as electronic banking ,customer interaction center (Call-center)

The phrase Electronic banking services is visually known as kind of banking services that customers could deal transactions without meeting bank staff It is a combination of banking activity with the Internet This technology leads customer services to become more convenient, which customers can quickly contact the bank and carry out some banking operations whenever they need (twenty-four hours per day, seven days per week) This is particularly significant for customers having less time to deal directly with banks; small and medium customers It can be seen that this

is the benefit that traditional banking transactions hardly could be with high velocity and accuracy compared to electronic banking

Along with Electronic banking service, Contact center (Call center) is a place receiving all the information, requests from customers in numerous forms: phone, e-mail, sms, web, fax and it does not depend on the starting point of information to receive requests and resolve complaints Therefore, this is considered as a place containing full of data, including customer information, billing information, details of services’ instructions Call center in banking sector directly helps customers by saving time and effort: providing information about the products and services in adequate way, which entirely meets the requirements of banks

Call center appeared in the US in the 1970s, which accounts for 70% of transactions In Viet Nam, Call Center was first launched in 2001 by the company named Focus This country is considered to have outstanding convenience developing this type of service, including cheap labor, multi-language skills As a result, Penetrating in Viet Nam's banking sector, with various convenient, commercial banks would have in turn established Call center for themselves

1.3.3.3 Human resources

Whether the bank is large or not, in order to have a professional customer service with specific own mark, it must focus on employees If a staff complies with those standards in the direct communication process with customers either via phone, email or handwritten, benefits for the bank would significantly improve Therefore, courteous staff in customer care plays a vital role in deploying, creating a friendly

environment Customers as well as banks’ employees are VIPs Customer is a very important person to the bank because bank staff are those who have ability to persuade loyal customers Meanwhile, customer service staff contemporary become VIP of the bank with a different meaning as a Very Influential Person The requirement for outstanding employees who can solve customers' problems is "ASK" “A” stands for attitude towards their work and clients “S” are skills to offer the customer services in

a professional manner, actively listening skills, effective questioning skills.“K” means the knowledge of products, services, and customers as well as the awareness of society

in general

1.3.4 The role of customer services and principals contributing to effective customer services

1.3.4.1 Maintaining previous customers

Sustaining customers is an important continual issue for all banks Banks commonly have to deal with requirement about their products and services instead of serving attitude or the convenience in banks’ dealings Despite that, customers are always interested in the products that banks offer and the way banks serving Therefore, customer satisfaction is a vital goal of banks Customer loyalty can only get

a high level of satisfaction, since this would create a comfortable mentality, which is still a shortage of normal dissatisfaction that only create a limited loyalty When customers feel satisfied with the customer services of the bank, they will reduce attention to other banks as well as less paying attention to prices Thus, customer service development is the key for banks to build up customer loyalty

1.3.4.2 Increasing competitive advantages

Due to the varied forms of customer services of numerous banks, the nature of these products is hardly to distinguish and recognize, especially in quality aspect, which is even more difficult to identify Customer services become more significant when those products and services of diversifying banks are in the same level of quality and price When that customers tend to choose banks to offer better services to satisfy their needs Therefore, once banks offer better customer services, they will have the advantages in competitive areas

1.3.4.3 Attracting new customers

Along with increasing competitive advantages, attracting new customers has always played a decisive role However, customer-attracting process is always an arduous task for any banks Currently, products and services of banks are increasingly diversified; therefore, customers can only evaluate the quality of products and services after purchasing them As a result, professional customer services would create the glamour and trust among customers, which initially determines whether or not clients would choose those services

1.3.4.4 Steadying the revenue and raising profit

Stabilizing the increase in revenue and profit is the greatest target of all banks Loyal customers’ transactions would not only generate stable profits, but also be a solid base of the success, stability, and sustainability of the bank Because of the fact that maintenance fees toward old customers cost less than those for attracting new customers and even lower than the cost for restoring old customers having switched to other banks when being not satisfactory

1.3.5 Principals contribute to effective customer services

Whether banks offer any types of customer service from small to large, cheap to expensive, it is important to have effective way by considering the quality of client service In order to maintain the quality of customer service in an effective way, customer service staff need to consistently follow principles

1.3.5.1 Investigating information of customers

Some vital contents that banks focus of researching customers such as their identification or their demands, which would significantly support banks for identifying potential customers that banks look toward, from then offering appropriate

strategies

1.3.5.2 Customers discrimination forbiddance

According to the economist Gary Richter, the first principle of the bank when

operating is to welcome all types of customer even though who do not expect Banks should entirely welcome every customer, especially those who do not expect If banks spread the red carpet to welcome a billionaire, they would not pay much attention to However, if banks welcome the multinationals, they would appreciate it Even if banks

spread the red carpet to welcome rich people, they will tell the story to their acquaintances Any bank that wants to be successful or to retains affined customers and to attracts more new customers must treat all customers equally without discrimination, and treats customer as a god That is the motto of all banks for the success in financial markets

1.3.5.3 Convenience creation

In a modern business environment, banks need to create the convenience for their customers in understanding the information, buying products and services, to receiving and solving customer problems processes Meeting customers on time is also

an important requirement, answer the phone punctually, reply e-mail inquiries during the working day, preferably within one to two hours The bank must stand on the customers' aspects to answer the question from the customers' point of view, not from the bank's speculation

1.3.5.4 Customer service trust

It is clear that customer service is a noble and professional job as it brings satisfaction to customers and prestige to the bank It has become a working method of various businesses Trusting in customer service can bring wonders for any type of business

1.3.5.5 Skill training for customer care staff

Customer care services are tending to develop stronger However, to have a perfect customer service, there must be a professional customer care team To succeed

in any field, the bank needs to keep in mind the slogan "the customer is always right", and let customers come back, become loyal customers, train customer service for employees is means to achieve the goal The key to every training program is the promotion of corporate culture, customer service culture, and communication standards that employees need

1.3.5.6 Customers’ satisfaction guarantee

Customer satisfaction with the products and services reflects the success of the bank The most important thing is that customers always want to ensure products and services will satisfy their needs Three key determinants of customer satisfaction are the product, convenience, and human Customer service although can provide

customers with convenience way but not a high-level quality’ services Client service can be recognized only when it ties to a high-class product or a top-quality service

1.4 Summary

Chapter 1 has demonstrated the basic concepts of customer service at commercial banks It clearly states that customers are entirely an effective communication tool The larger customer base of the bank is, the less the bank would spend on advertising and marketing Satisfied customers would tell others about the wonderful service provided by banks, which is significantly valuable and rewarding This chapter has also illustrated to readers criteria leading to what determines the customer services of customers

CHAPTER 2 OVERVIEW OF SACOMBANK VIET NAM AND SACOMBANK -

HA NOI BRANCH

This chapter presents a brief introduction about Sacombank Viet Nam and fundamental overview of the structure, development strategies of Sacombank - Ha Noi Branch

2.1 Brief introduction of Saigon Thuong Tin commercial joint stock bank of Viet Nam

2.1.1 Introduction of Saigon Thuong Tin commercial joint stock bank of Viet Nam

Full Name: Ngan hang Thuong mai co phan Sai Gon Thuong Tin

International Name : Saigon Thuong Tin Commercial Joint Stock Bank

Abbreviation Name : Sacombank

Address: 266-268 Nam Ky Khoi Nghia Street, District 8, Ho Chi Minh city Tell: 04.83 9320 424

Fax: 84.8.3932 0424

Email: info@sacombank.com

Source: https://www.sacombank.com.vn/

Logo:

Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) was established

in 1991 It is one of leading joint stock commercial banks in Viet Nam with a wide branch network of over 100 transaction offices extending from the North to the South, with a number of 2,659 staff Sacombank deals with 7,700 agents from 200 banks that span in Viet Nam, Laos, Cambodia and 80 other countries around the world Sacombank Viet nam is also one of the most successful banks with a long period of innovation in investment in medium and small enterprises, and in the development of

products, services for individual customers Visioned to be the first modern functional retail bank in Indochina area, Sacombank has strived to offer customers the best-quality services and the most professional service style Sacombank Viet Nam’s vision is the development strategy, including a rapid increase in financial capacity, modern technology development, and the enhancement in the quality of products and services, the network expansion in Viet Nam and in the region, the human resources development investment, and improvement of the management system

multi-2.1.2 The business of Sacombank Viet Nam

Table 2.1: The business operation of Sacombank Viet Nam

Business operation of Sacombank Viet Nam

Capital mobilization Loaning Other activities

1 Foreign exchange trading

2 International payment and

other foreign exchange services

in accordance with foreign exchange legislation of the Government, the State Bank of Viet Nam

3 Services business; automatic

teller machines; credit card services; finance leasing

4 Staff training business as

authorized by delegation by the General Director of Sacombank Viet Nam

(Source: Report on the statistics of business activities) 2.2 The overview of Sacombank - Ha Noi Branch

Sacombank - Ha Noi Branch was established on 2nd March, 1993 in Ha Noi, it

is headquartered at 65 Ngo Thi Nham district, Hai Ba Trung street, a crowded residential district of Ha Noi capital Currently, Sacombank is one of eight branches of Sacombank in Ha Noi is dependent accounting unit with 6 transaction offices In the business process , it has opened more transaction offices in order to dominate the local

market and facilitate transactions

Accounting Department

Deputy Director

Administration Department

International Payment Office

Transaction Processing Office

Accounting Office

Funding Office

Administrative Office

Security Office

2.2.1 Organizational Structure of Sacombank - Ha Noi Branch

Sacombank - Ha Noi Branch is a part of the strategy that creates a difference, gradually differentiates clients for their capability improvement Branch director is the person who directly manages and is fully responsible to the General Director of Sacombank Viet Nam The Board of Directors, including the director and deputy director daily manage operations of the Sacombank branch office, Ha Noi Branch embraces specific departments: customer relationship department; operation department; accounting department and administration department

Figure 2.2: Organizational structure of Sacombank - Ha Noi Branch

(Source: Operation Department)

2.2.2 Types of business operation of Sacombank - Ha Noi Branch

The main tasks of Sacombank - Ha Noi Branch are the direct monetary business, credit and banking services in Ha Noi

Table 2.3: Main business operations of Sacombank - Ha Noi Branch

Business operations of Sacombank - Ha Noi Branch Capital Mobilization Loaning Other activities

• The reception of

savings deposits:

non-term deposits; non-term

bonds, bank bill

issuance and other

funding from the

Government and credit

institutions in foreign

economic organizations

in accordance with the

basis and regulations of

Sacombank Viet Nam

• Short-term;

medium-term and long-term loans in domestic and foreign currencies to customers

• Capital funding for import-export businesses

• Verification, evaluation of credit projects, lending projects as authorized based on the General Director

re-of Sacombank Viet Nam

• Foreign exchange trading including buying and selling foreign currencies, international payment and other foreign exchange services in accordance with foreign exchange control legislation of the

Government, the State Bank of Viet Nam and Sacombank Viet Nam

• Services business, automated teller machines, credit card services,

finance leasing

• Staff training business as authorized by delegation assigned by the General Director of Sacombank Viet Nam

(Source: Report on the statistics of business activities)

2.3 Summary

This chapter has provided fundamental introduction about Sacombank Viet Nam as well as Sacombank - Ha Noi Branch Through reviewing the structure, business operations of both Sacombank Vietnam Ha Noi Branch, basic background for the assessment of customer care system at Sacombank - Ha Noi Branch was provided

in the next chapter