case of scb scb deluded customers by advising them to buy insurances instead of saving money in bank accounts

Case of SCB: SCB deluded customers by advising them to buy insurances instead of saving money in bank accounts 1.. SCB staff continued to insist that "this product is not life insuran

NATIONAL ECONOMICS UNIVERSITY CENTER FOR ADVANCED EDUCATIONAL PROGRAMS

BUSINESS COMMUNICATION REPORT

Triệu Nguyệt Hương 11212557

Class: Advanced Finance 63A

Instructor: PhD Lé Thi Thu Mai

Ha Noi, May 2023

Table of contents

I Sai Gon J.S Commercial Bank (SCB) 0 i ccccccccccccccccecetetstesesesesertetetateeeteerereneeas 4 A._ Overview of SCB ch nh TH ng Hs KĐT KT KĐT KT KĐT 4

B Case of SCB: SCB deluded customers by advising them to buy insurances instead

Of Saving Money IN DANK aCCOUnfS nnn TT n ng ng kg kế 4

2 Reasons for studying this cas@ HT ng HH HT ky kh rà 6

3 Reasons for this CaS@ LH nn nh TT TH KT TH kh 6

4 Consequences for this CaS© LH nn ng ng kh Hà tàu 8

5 Resolutions of COmpAry LH TH HH kg gà HH Hà tr tr ra 9 (CWS 10 [0 (¢[-S<)1 (0) 0 nh nh ng nề tk tk ng kh 10

A._ Overview of OT Motor VĨna ST ng HT KH KH 10

B Case of OTO Motor Vina: Korean Manager physically abused a Vietnamese

worker because of multicultural confÏiCf - ST nh HH trêu +1

1 D@SCTIPHON ng nnnn ng KT TK K11 tr ca 11

2 Reasons for studying this cas@ nh nh nh nh HH kh HH tr Ha 13

3 Reasons for this CAS@ LH HT Tnhh n HT TT T* TH KĐT kh 13

4 Consequences for this CaS© LH nn nh nh kg at 14

6 SUQQ©SIiOnS uc nh TH TH He HH 15k kh tk kà 16 II] Expect to learn in general n1 111 n1 n1 nghe kết 16

Introduction

Miscommunication occurs frequently in both the personal and professional spheres

Nowadays, communication issues are a common occurrence in Vietnamese businesses, which

has a negative impact on their relationships, growth, and reputation and clients

Two cases involving the SCB bank and the OTO Motor Vina company will be used to analyze and clarify various aspects of the problems in greater detail At SCB, bank employees gave customers incorrect and honest advice about services, which caused misunderstandings and significant losses for both the bank and the customers Customers are also partially to blame for the loss because they did not pay close attention when using the service and signing the contract

Due to cultural and communication barriers, there was a fight at the OTO Motor Vina

Company, which had an impact on the morale and health of the workers Furthermore, this unnecessary altercation was partially caused by the attitudes of both sides More importantly, this incident made many workers feel uneasy and anxious while they were at work

The incident, its causes, and its effects will all be examined in the report In order to assist in

resolving ongoing issues in numerous businesses and prevent reoccurring incidents that have

an adverse impact on working relationships, professional growth, and future relationships, solutions for each case will also be mentioned

Content

I Sai Gon J.S Commercial Bank (SCB)

A Overview of SCB

On December 26, 2011, the Governor of the State Bank granted License No 283/GP-NHNN

on the establishment and operation of Sai Gon J.S Commercial Bank (SCB) from the voluntary merger of three banks: SCB, Ficombank, TinNghiaBank SCB officially came into operation on January 1, 2012 This was considered an important turning point in the historical development of the three banks, marking a comprehensive change in scale of total assets, network, technology and personnel, etc The bank currently has a network of 239 outlets in

28 major provinces/cities with a total number of over 7,000 employees

B Case of SCB: SCB deluded customers by advising them to buy insurances instead of saving money in bank accounts

1 Description

120 SCB clients filed a group grievance with Manulife in District 7, Ho Chi Minh City, on

February 21, 2023

The staff at SCB, who are frequently consulted and taken care of, allegedly offered the savings product "Investment Mind" to numerous people as a result of their affiliation with Manulife A death benefit is reportedly included when using this product, according to the staff Other instances show that the consultant failed to mention that this is life insurance

Ms Do Nhu Huong, a Saigon Bank (SCB) client, claimed that

© SCB staff had advised her to switch to a flexible investment hus _ savings plan with a 6-year term that allowed for early

Chi co bất buộc là từ năm 2:3-4-5-6 3 linh withdrawal and higher interest rates SCB staff continued to

insist that "this product is not life insurance but savings combined with investment." She responded "no savings here" when she received a notice from the insurance provider

i h Manulife requesting an additional payment of VND 50 million ữnhé VituớcccyMeusøliae, — LƠ Maintain the insurance policy A total of 110 million dong

yết của ngân hàng thông thường thôi se

nan have been invested in Manulife’s combined investment

Ví dụ Nếu c gửi 100tr lãi suất 6% /năm

trong 36tr chẳng hạn 6 năm thì khi đáo hạn phần lãi insurance product, of which 50 million dong represent the Như em ce gi thiêu senggsinayt D@SIG annual premium and the remaining 60 million dong

ụ represent the investment-linked fund

ấp hơn không? Và lãi

a

She claimed that although the bank staff claimed to offer an interest rate of 9.5% annually,

this is untrue It turns out that when investing, | have to accept all risks, even if this

investment occasionally loses tens of percent, Huong said

The fact that the customer only received a photocopy of the contract is another noteworthy

detail Even as of the middle of 2002, the terms were only available online at the Manulife

company website Despite the fact that retirees make up the majority of customers, they hardly ever use the Internet.Customers claim that they only dealt with banks—not insurance companies—when purchasing products from Tam An Investment In which, a lot of clients admitted that because they were ignorant at first and had limited knowledge, they had complete faith in the consultant They are also constantly assured that the bank will bear all liability because the contract bears the bank's logo

misunderstanding between SCB bank and Manulife insurance company Manulife actually admitted that they HOP BONG BAO HIEM were unaware of how much of SCB

customers' savings deposits were turned into cash to pay for insurance Manulife Vietnam reported that it had

observed a_ situation where some customers were not entirely satisfied with their participation in the unit-

linked insurance product, known by the company's trade name "Tam An Dau Tu." Manulife Vietnam has asked to cancel the insurance policy in advance because it is distributed by its partner Saigon Commercial Bank (SCB)

2 Reasons for studying this case

Currently, many employees in some businesses prey on customers’ subjective psychology when negotiating and signing contracts, which causes customers to fall into the trap of employees and businesses The report will discuss potential unethical workplace conduct as well as common communication problems faced by multinational corporations An example

of how miscommunication in business, whether intentional or not, can have serious

repercussions is when a SCB banker knowingly provides a customer with false information about a service

3 Reasons for this case

- AlDA serves as an example of how SCB deceives people into purchasing "tam a dau tu" life insurance:

THE AIDA MODEL

<— IWARENESS

<— WIEREST

—— DESIRE

<— ACTION

ESSENTIAL MARKETING MODELS HTTP J/BIT.LY/SMARTMODELS

+ Attention: SCB gains customers’ attention by offering an attractive type of investment when their saving book went off The investment will generate 8,7-15% revenue based on the money they decided to put on

+ Interest: After gaining the customers’ attention, the Board and employees now

shows their customers numerous benefit of for investment: Accident insurance, life

insurance, discount when using hospital’s services, etc

+ Desire: Now sales employees will demonstrate how these benefits will improve their lives How the customers would benefit on their investment

+ Actions: SCB staff provide a fantastic interest rate and the sum repaid following a period of saving Additionally, this will be investment savings rather than insurance Employees also have the behavior of drafting long, complicated contracts and urging customers, making customers not have time to read specific contracts

- Communicate orally with consumers may leads to miscommunication

6

When having external communication, in reality, SCB should have provided customers with project-specific information via email or other channels, so that they could comprehend the project In contrast, SCB only provides the customer with information about the project through the direct consultant's words Customers are specifically advised to invest in projects

in order to save money and earn interest Employees commit to this investment product for a term of only 6 years at an interest rate of 8.7 to 15%, which is higher than the bank However,

no information is provided to the customer via any other channels Additionally, SCB staff members mislead clients with their advice After signing, the new client learns that it is an insurance policy and that they must pay yearly maintenance fees, which causes significant property damage

- SCB is unethical in persuading

According to the theory of “Ethical communicator’, an ethical communicator or persuader

must be truthful, label opinions, be objective, communicate clearly, use inclusive language,

and give credit The banker doesn't appear to be a skilled communicator yet based on those standards They offer their clients unbiased and false advice

Additionally, they speak vaguely and

unauthentically instead of using inclusive

laws

words, which makes it difficult for customers ty ay Cea =

to understand what they are saying ~ —

SCB bankers engaged in serious miscond

particularly at work Fraudulent activity is (> ann ị

categorically forbidden in Vietnam under al y

laws In terms of values belief and ethicala Ly x

reasoning, they have abused customers’ trust by TP ——NHm

coercing them into purchasing insurance and

misusing their money

Policies

Beliefs TH, Ethical (ony

- SCB failed in the writing 3x3 process

e Prewriting: Failing to properly research, research, and implement the project, and receiving unfavorable customer feedback

e Drafting: Too focus on profits, showing utter disdain for clients’ savings and investment advice

e Revising: Lack of an accurate and truthful assessment of the effects of customer financial abuse

- $SCB failed to commit legal action to follow contract with Manulife and Misunderstanding between Manulife and SCB

SCB and MANULIFE decided to collaborate with each other since 2015 to sell products for manulife and generate revenue based on sales Since then, numerous products have been

introduced to the customers: Tam An Dau Tu, Tam An 360, Tam An Thinh Vuong, etc The

introduction of “Tam An Dau Tu” from MANULIFE and authorize SCB to sell the product SCB fail to mention the risks that customers might face and customers have to put money in annually to maintain their investment SCB also failed to confirm with Manulife about the advice that they give to customers Resulting in numerous scandals for the two companies

Moreover, in fact, Manulife has no intention of scamming clients with SCB, despite wanting

to get the most contracts

4 Consequences for this case

Many customers’ property was damaged as a result of the incident Customers will specifically lose their investment savings and switch to insurance; customers will also have to pay an extra 50 million VND for the next term to maintain the insurance package Moreover,

on April 20, more than 100 people went to the Ho Chi Minh City Police's Office of the Investigation Police Agency (PC01) to lodge a complaint This unit had previously received

dozens of complaints with similar information Otherwise, the contracts will be terminated

Additionally, there was a significant decline in customer loyalty and trust When they find out that the money they put into savings has been misused, many people react negatively

Nguyentrinh Một số ngân hàng giờ ko còn chuyên nghiệp nữa Cứ tới giao dịch là bị tư van mo chài gói bảo hiểm nhân thọ chả giống ngân hàng chút nào Riết chán chả muốn đi chỉ khi nào quá

cân thiêt mới đi còn ko cứ banking

ùò Minh Chuyên Tôi để nghi bộ tài chính, NHNN không cắp phép cho ngân hàng liên kết với máy ông bảo hiểm ngay từ bây giờ Đừng có đề ngành ngân hàng đánh mắt niềm tin với người dân, đừng có

đưa nhân viên ngân hàng thành nhân viên bảo hiễm vì áp lực của cắp trên quá lớn

í

nguyenxuanloc1973 Ghê thật thời buổi khó khăn này vây mà các bank nỡ lòng nào lại đi lừa khách hàng Xin nói rõ nếu không rõ ràng hay mơ hồ trong giao dịch là đồng nghĩa với lừa dối nên

các bank không thể chối cãi và fai có trách nhiệm trả lại tiền cho khách hàng

t

Moreover, the bank's reputation slowly declined, which will negatively affect future growth

Given this information, the number of SCB customers in the future may decline as a result of

their concern over numerous issues and preference for other banks as a more reliable option Especially, The SCB scandal has been the subject of numerous articles recently and has negatively impacted the company's reputation

—- Tranh dán tường 3D UV siêu bền

ant f t

cnc wallpaper

THỜI sy 20/04/2023 19:18 (GMT+07:00)

Hàng trăm người tố cáo gửi tiết kiệm SCB thành mua bảo hiểm Manulife

Đàm Đệ

€ Nhà báo

f§ ww m Ff RR Theo dõi VietNamNet trên Google News

Công an TP.HCM vừa tiếp nhận hàng trắm đơn của người dân tố cáo, khi gửi tiền tiết kiệm tại ngân

hàng SCB bị biến thành mua bảo hiểm Manulife

Nguồn thỏng tin từ Công an TP.HCM cho hay, trong những ngày qua đã tiếp nhận gần 150 đơn tố cáo vớ:

nội dung như trên và đang xác minh, xử lý theo quy định của pháp luật

Cu thế trong naàv 20/4 có hơn 100 naười đã đến Văn phòng Cơ quan CSĐT íPC01) — Công an TP HCM

Other banks' insurance projects and services were significantly impacted by the SCB case Customers will be hesitant to use insurance services from banks that have business relationships with insurance providers or to invest in high-profit ventures after learning about the SCB case Banks will receive less commissions

5 Resolutions of company

SCB has not yet provided customers with a clear explanation, a formal apology letter, solutions, or compensation SCB customers allegedly have also not gotten their money back

As a result, many clients now find it contentious and urgent that SCB has not offered a solution

Manulife's side has responded, promising that this issue will be fully resolved Leaders of the Manulife Vietnam insurance company held a press conference on the afternoon of April 26 at the company's headquarters in Ho Chi Minh City to discuss problems with "Investment peace

of mind" insurance that customers have previously complained about, as well as expressed sympathy to so-called victims

Manulife hứa giải quyết dứt điểm vụ khách gửi

tiết kiệm biến thành mua bảo hiểm

> Nate treo (Ong Szehin M Shah, Cha tich HOGT Marsuilfe ViệtMam cho biết khách hàng ẽ được hùy hợp đồng hase hoàn lạ phí nếu có cơ sở hop hy

o© 7c .ggỢY °

Manulife has taken strict action against the individuals involved in cases where there was evidence of misconduct during the consulting process To begin the discussing and resolving complaints beginning on April 30, 2023, Manulife Vietnam will get in touch with SCB customers participating in and having submitted complaints about the "Confidence of Investment" insurance product They aim to fairly resolve the conflict between the two parties, including contract cancellation and refund if justifiable grounds exist

6 Suggestions:

e They need to improve awareness when communicating about the important deals,

terms, and conditions of contracts, et cetera as well as developing soft skills such

as listening or reading as well as widening knowledge about business problems and aspects before making decisions are also important

e Keeping up to date in this modern era like today will be crucial to making investment decisions in the future

e They should improve the consultative department and customer service

department as well as offer clearer, explicit, and professional advice initially SCB needs to suggest ways to reconcile and deal with customers after being discredited

e Specific tactics should be used to build trust from customers, especially in a competitive era today To begin with, SCB need to formally apologize to the customer, which lessens the psychological crisis the customer is experiencing Next, SCB must develop customer compensation plans, such as money-back guarantees, etc To guarantee that the incident won't happen again, SCB needs to specifically guarantee future services to customers occurs again Additionally, SCB can give customers priority when it comes to investment opportunities in upcoming projects

e MANULIFE and SCB must discuss with each other ways to sell their product to customers ethically to avoid misunderstanding between the two companies and customers The 2 companies should also be aware of the employees’ training sessions to provide customers with more satisfactory services in order not to be involved in scandals like the mentioned case

Il OT Motor Vina

A Overview of OT Motor Vina

An organization from Korea by the name of OT MOTOR VINA, also referred to as OT Motor Vina Company or OT MOTOR CO.,, LTD is originally a Korean company owned by 1976-founded WONTAE die-casting The company uses 100% capital from Korea OT

10