ABSTRACT Title: Improving customer satisfaction on savings deposit service at VIB Ha Dong Branch Author: Tran Phuong Thao Key words: customer satisfaction, savings deposit services, ser
INTRODUCTION
S ignificance of the Study
In a market economy, commercial banks serve as the backbone of economic growth, significantly contributing to the country's industrialization and modernization For effective business development, these banks must prioritize capital mobilization, particularly through savings deposits, which represent a substantial and stable source of capital This stability not only enhances the bank's safety and liquidity but also enables it to boost competitiveness, diversify its business activities, mitigate risks, and achieve higher profits.
Since its integration into Hanoi in 2008, Ha Dong has emerged as a dynamic economic hub, prompting significant expansion of the banking sector, particularly by Vietnam International Commercial Joint Stock Bank (VIB) In a competitive financial market, banks are striving to enhance their services to meet customer demands, with customer satisfaction being a primary objective Despite steady growth in VIB's capital, its market share for capital mobilization in Ha Dong has seen a decline While VIB Ha Dong excels in credit card and bancassurance sales, ranking first in these areas among VIB's 14 branches in South Hanoi, it currently holds only the fourth position in capital mobilization As competition intensifies, VIB Ha Dong faces the challenge of maintaining its leadership and fostering further growth.
Currently, there is a lack of official research on customer satisfaction at VIB Ha Dong By analyzing customer satisfaction, VIB Ha Dong's management can gain valuable insights into customer behavior, attitudes, and aspirations This information will enable them to make more informed decisions regarding the bank's capital development strategies.
Aware of the importance of the research problem and derived from that actual need,
I have decided to choose the topic "Improving customer satisfaction on savings deposit service at VIB - Ha Dong Branch” for my graduation thesis.
Objectives of the Study
The overall research objective of the project is to improve customer satisfaction on savings deposit service at VIB - Ha Dong Branch
The specific objectives of the study consists of the following three points:
- Finding out the factors affecting customer satisfaction on savings deposit service at VIB Ha Dong
- Evaluating the level of customer satisfaction for each factor and finding the factors having the most influence on the overall satisfaction rating of customers
- Providing solutions to improve customer satisfaction using savings deposit service at VIB Ha Dong
Research Questions
This research will aim to find answers to the following three questions
- What factors affect customer satisfaction on savings deposit service at VIB Ha Dong and what is the customer satisfaction level for each of these factors?
- What factors have the most influence on the overall satisfaction rating of customers for this service?
- What are the possible solutions to enhance customer satisfaction with savings deposit service at VIB Ha Dong?
Research scope of the thesis
This study focuses on customers utilizing the savings deposit service at VIB Ha Dong up until March 2022 It also examines data from the VIB Ha Dong Branch spanning from 2019 to March 2022 and offers strategic recommendations for the next five years, starting in 2022.
Structure of the Study
This research is divided into 6 chapters with specific contents as follows:
LITERATURE REVIEW
Savings deposit
According to Article 6 of the Regulations on Savings Deposits No 1160/2004/QD-NHNN, a savings deposit refers to an individual's funds placed into a deposit account, which is verified through a passbook These deposits earn interest as per the guidelines set by Depository Institutions and are protected under the law concerning deposit insurance.
This type of deposit is considered an investment today to have a larger amount of money in the future
To enhance its capital potential, the bank not only implements a competitive interest rate policy to safeguard depositor interests but also introduces promotions to attract more customers.
According to the General Statistics Office of Vietnam, banking falls under the service sector, categorizing savings deposits as a service product Consequently, savings deposits possess all four fundamental characteristics of a service product.
The savings deposit service is intangible, as customers engage with it through communication and information exchange, ultimately fulfilling their needs Notably, customers can assess the service quality only after they have purchased and utilized it.
The banking service operates on a simultaneous supply and demand model, where services are rendered only when customers express a need that aligns with the bank's conditions This interplay influences service pricing to balance the interests of both parties By conducting thorough research to align their offerings with customer expectations, banks can effectively bridge the gap between supply and demand, ultimately attracting more clients and boosting their revenue.
Banking services are significantly affected by various factors within the business environment, particularly in today's economy, which is characterized by integration and unpredictable fluctuations The quality of these services is shaped by both objective elements, such as customer satisfaction and cultural habits, and subjective factors, including the bank's reputation, its market position, staff qualifications, and marketing strategies Consequently, the stability of banking services is often compromised.
Commercial banks offer intangible banking services that cannot be stored, leading to significant fluctuations in demand As a result, banks face challenges during sudden spikes in demand since they cannot produce and stock ready-made products.
In addition, a savings deposit product includes the following core characteristics:
Savings deposits are accessible to customers upon request, even before their maturity date This transaction represents a mutual agreement between the commercial bank and the depositor, where the bank borrows funds from customers with a promise to repay the principal amount along with any accrued interest.
If the customer does not withdraw the principal amount by the maturity date of the deposit, it will automatically accrue interest and be reinvested into a new term at the current interest rate.
Savings deposits are a highly stable source of capital mobilization for banks, significantly contributing to the total deposits they raise Particularly long-term savings deposits serve as the foundation for commercial banks' lending activities, which are crucial for generating profits and fostering growth This is especially relevant for Vietnamese commercial banks, where lending remains the primary source of earnings.
Savings deposit interest rates are regulated by the State Bank, which sets a ceiling interest rate and guidelines for each period Banks, guided by their business goals, offer competitive rates to attract savers Typically, longer-term savings accounts come with higher interest rates, reflecting the increased risk and reduced liquidity compared to short-term accounts.
The transaction value of savings deposits reflects the total amount held in savings accounts over a specific period, indicating the level of idle money in the economy A higher transaction value suggests that customers are opting for secure returns through deposits, often in response to economic challenges Conversely, a lower transaction value indicates a more robust economy with diverse investment opportunities available to consumers.
According to Article 6 Regulations on savings deposits No 1160/2004/QD-NHNN, the savings deposit includes demand savings deposit and term savings deposit
A demand savings deposit allows depositors to withdraw funds at any time without prior notice, making it a flexible option for managing finances Although the real interest rate is lower than that of term deposits, customers benefit from daily interest calculated on their remaining balance This type of savings account is ideal for individuals who want to keep their money accessible while still earning interest Additionally, demand savings deposits offer the convenience of withdrawals during bank office hours, enabling proactive financial management Furthermore, these accounts can serve as collateral for loans or guarantees for third-party borrowers seeking bank loans.
A term savings deposit is a type of savings account where funds are locked in for a predetermined period, as agreed upon with the depository institution These institutions typically offer various term options for depositors, including durations of 1 week, 2 weeks, or 1 month.
2 months, 3 months, 6 months, 9 months, 12 months, 18 months,
Based on different selected deposit terms, customers will also enjoy different interest rates These rates will be higher than the interest rates of demand savings deposit
A term savings deposit is ideal for individuals seeking a secure and profitable way to save money while planning for future financial needs Typically, funds in a term savings account can only be accessed upon maturity; early withdrawals require bank approval and will earn the interest rate of a demand savings deposit Key features include pre-agreed, fixed interest rates for the duration of the deposit, with interest calculated daily and paid out monthly, quarterly, or yearly based on the chosen term Interest payment options include prepayment, post-payment, and periodic payments, and account holders can use their savings balance as collateral for loans at financial institutions.
Customer satisfaction
There are many concepts of customer satisfaction as follow:
Philip Kotler (2000) defines customer satisfaction as a ‘person’s feeling of pleasure or disappointment, which resulted from comparing a product’s perceived performance or outcome against his/her expectations’.
Customer satisfaction is defined as the overall attitude of a customer towards a service provider, reflecting their emotional response to the discrepancy between their expectations and the actual service received This concept emphasizes the importance of meeting customer needs, goals, and desires to foster positive relationships.
Customer satisfaction is influenced by how well a product or service meets or exceeds expectations When performance falls short of what customers anticipate, dissatisfaction arises Conversely, if the performance aligns with expectations, customers feel satisfied However, when a product or service exceeds those expectations, it leads to a high level of customer satisfaction.
Numerous studies have pinpointed key factors impacting customer satisfaction, including customer expectations, perceived service quality, product quality, perceived value, and price (Fornell et al., 1996; Yu et al., 2005; Zeithaml et al., 2009) These factors consistently reflect the critical aspects of customer satisfaction across various research efforts.
The most popular among the studies is
Zeithaml et al.’s Customer Satisfaction
Model Zeithaml and Bitner (2012) suggested a customer satisfaction model
This model has five factors that drive customer satisfaction; they are service quality (SERVQUAL), product quality, price, situational and personal factors
(such as emotions and moods) as shown in the figure
Model of customer satisfaction (Zeithaml and Bitner, 2012)
Service quality models, including the gaps model and SERVQUAL, propose that customers enter a service encounter with specific expectations These expectations are compared to the actual service experience to evaluate the organization's service quality (Zeithaml et al., 1985; Grönroos, 1990) Customer satisfaction occurs when the actual service meets expectations, dissatisfaction arises when the service falls short, and delight is experienced when the service exceeds what was anticipated Research supports these findings (Rust and Oliver, 1994; Zeithaml et al., 1988).
Boulding et al., 1993; Anderson and Sullivan, 1993; Fornell et al., 1996) have agreed that service quality is an antecedent to customer satisfaction
Product quality is defined by its ability to meet customer needs, fulfill its intended purpose, and adhere to industry standards Businesses assess product quality by examining key factors such as problem-solving capabilities, operational efficiency, and alignment with customer requirements.
The influence of price on satisfaction has been given a lot of attention by researchers over the years (for example Anderson et al., 1994; Salvador et al., 2006)
Salvador et al (2006) emphasized the need to broaden the definition of price to encompass not only the actual cost of a service but also related expenses They identified two dimensions of price: the objective monetary price paid and the cost associated with obtaining the service, which includes evaluating the adequacy of fees for labor in relation to other services Zeithaml (1988) further classified price components into objective price, monetary price, and sacrifice Additionally, Salvador et al (2006) argued that price should reflect value, benefit, and cost, asserting that customers perceive value when the benefits derived from a product or service exceed the purchase cost.
Research indicates that the price of a product or service significantly impacts customer satisfaction and loyalty towards a company (Bei & Chiao, 2001; Anderson et al., 1994) According to Anderson et al (1994), pricing strategies are crucial for fostering long-term customer relationships.
Customer satisfaction is closely linked to perceived value, which is defined as the ratio of perceived quality to price or benefits received to costs incurred Jiang and Rosenbloom (2005) found that customers' perception of price positively influences their satisfaction and future behavioral intentions Additionally, Yieh et al (2007) noted that customers often rely on price as an external indicator of service quality, particularly in industries like automotive services, where many customers lack the technical expertise to evaluate the service quality themselves.
Situational factors that influence customers are external elements often beyond the control of marketers, manufacturers, and retailers, significantly impacting how consumers engage with products and form opinions in specific contexts Key situational factors include environmental aspects such as lighting, music, noise, and aroma, as well as social influences, where a consumer may opt for a more expensive item in the presence of a colleague or potential partner compared to being with a friend or spouse Additionally, the timing of purchases plays a crucial role, as a hurried shopper will interact with fewer products than someone who has ample time to browse.
Personal factors significantly impact buying behaviors and customer satisfaction, with variations in perceptions, attitudes, and behaviors toward goods and services Key personal factors include age, income, occupation, and lifestyle, each contributing uniquely to individual consumer experiences.
2.2.3 Determinants of customer satisfaction on savings deposit service
According to the model of Zeithaml and Bitner (2012), the factors affecting customer satisfaction using savings deposit service will also include service quality, product quality, price, situational and personal factors
From the bank's perspective on customer satisfaction research, it is important to note that situational and personal factors are often beyond the bank's control, making it challenging to conduct comprehensive studies.
When evaluating savings deposit products, it's essential to consider their quality, as banks are increasingly offering diverse packages to meet various customer needs Due to intense competition, differences in product features among banks have become minimal Key aspects that customers focus on include the terms of the deposit, methods of deposit, and interest payment options Currently, banks provide flexible deposit terms ranging from 1 week to 24 months Interest can be paid at the beginning or end of the term, or on a monthly or quarterly basis Additionally, customers have the convenience of depositing money both online and at bank counters.
In an environment where product quality among commercial banks is largely similar, customers are increasingly influenced by their satisfaction with service quality and pricing when making deposit decisions.
2.2.3.1 Service quality and the relationship between service quality and customer satisfaction
Service quality is a multifaceted concept that varies in definition Zeithaml describes it as the customer's evaluation of the overall excellence and superiority of a service, shaped by their expectations versus their actual experience This assessment reflects an attitude that emerges from comparing anticipated service levels with the perceived quality received According to Parasuraman et al., understanding service quality is crucial for businesses aiming to enhance customer satisfaction and loyalty.
Service quality is defined as the gap between customer expectations and the actual service perceived, as highlighted by Lewis and Mitchell (1985, 1990) This definition emphasizes the importance of viewing service quality from the customer's perspective, placing the customer at the core of the evaluation process.
Parasuraman (1985) built a measurement tool called SERVQUAL, a pioneer in service quality research This is the most popular and widely applied service quality research model in marketing research
METHODOLOGY
Research model
This thesis utilizes the customer satisfaction research model developed by Zeithaml and Bitner, focusing on the Service Quality and Price factors, as situational and personal influences are largely outside the bank's control, and product quality is similar across commercial banks The Service Quality factor is assessed using the SERVQUAL model by Parasuraman et al., which comprises five essential components: Reliability, Responsiveness, Assurance, Empathy, and Tangibles Consequently, the research model incorporates a total of six factors: Reliability, Responsiveness, Assurance, Empathy, Tangibles, and Price.
The model's dependent variable is customer satisfaction, while the independent variables consist of customers' perceptions of the bank's savings deposit service These perceptions are evaluated through key factors, including Reliability, Responsiveness, Assurance, Empathy, Tangibles, and Price.
Customer Satisfaction on Savings Deposit Service at VIB
Explain the factors in the model:
Tangibles refer to the visible elements of a bank that impact customer decisions, including its facilities, equipment, machines, documents, and communication systems Essentially, these are the aspects that customers observe, hear, and experience, all of which play a crucial role in influencing their choice to save money at the bank.
- Reliability: The trust of customers in savings deposit service is accurate and confidential service provision This requires consistency and the bank’s commitment to customers using this service
Responsiveness reflects a bank's commitment to providing optimal conditions for customers during transactions It serves as a key metric for evaluating the bank's ability to swiftly resolve issues and effectively address complaints.
- Assurance: It is a criterion to measure the professionalism, level of professional expertise, and other skills of bank employees
- Empathy: It is the considerate gestures, cheerful service attitude, enthusiasm, customer care, giving customers good experiences, favors, and respect, always putting the interests and expectations of customers first
- Price: It is the deposit interest rate of the bank.
Research method
The research conducted at VIB Ha Dong focuses on customers
The survey was conducted using a self-administered questionnaire, where respondents indicated their level of satisfaction by ticking boxes for each item Utilizing questionnaires offers several advantages, including cost efficiency, scalability, and the ability to obtain quick results Traditionally, these questionnaires are printed and distributed to customers at the counter, while an online version created with Google Forms is emailed to customers who make online deposits To enhance participation, customers receive a follow-up phone call informing them about the survey and expressing gratitude for their involvement The questionnaire consists of two distinct parts.
The initial section aimed to collect essential personal details from customers, such as gender, age, occupation, income, savings deposit amount, duration of using the savings deposit service at VIB Ha Dong, sources of information regarding this service, and the motivations behind selecting VIB's savings deposit offerings.
Ha Dong, term of saving, and forms of savings
The second section examined respondents' experiences with the savings deposit service at VIB Ha Dong, utilizing a 33-item survey based on a 5-point Likert scale The scale ranged from 1, indicating 'Strongly disagree', to 5, representing 'Strongly agree'.
‘Agree’ , 5 - ‘Strongly agree’ and 2 extra questions at the end of the survey The advantage of Likert rating scale is that it may avoid biased responses like ‘Yes’ or
Participants have the option to diversify their choices along a scale, allowing for more nuanced responses This approach enables researchers to easily analyze the collected data, draw meaningful conclusions, and create informative charts for reporting and explanation purposes.
The survey was categorized into 7 sections of questions
Participants were asked to assess their satisfaction with the reliability of the savings deposit service, focusing on five key aspects: the bank's reputation, information security, customer trust in the information provided by VIB, the bank's fulfillment of its commitments, and the overall sense of safety experienced by customers.
In the second section, customers share their satisfaction regarding the responsiveness of bank staff, highlighting seven key aspects: the effectiveness of resolving customer issues, the availability of information on deposit products, the staff's willingness to provide advice and assistance, the efficiency of bank tellers, the variety of deposit products in terms of terms and interest payments, and the accessibility of the VIB hotline.
The Assurance factor encompasses 12 key statements from customers, focusing on aspects such as the professionalism and working style of bank staff, their expertise in addressing inquiries, their capability to recommend the most suitable deposit products, and the overall enthusiasm and friendliness exhibited by the team.
In the fourth section, customers evaluate their satisfaction with the Empathy factor by responding to three key items: the attentiveness of staff to customer feedback, the proactive efforts to understand customer needs, and the effectiveness of the bank's customer care policies.
In the fifth section, customer satisfaction is evaluated through the Tangibles factor, which includes seven key elements: the quality of facilities, the layout of counters, promotional materials such as banners and leaflets about deposit products, staff attire, the strategic location and accessibility of the transaction network, the efficiency of transaction times, and the functionality of the "savings deposit" feature on Internet Banking.
In the sixth section, the participants are asked to share the pleasure relevantly to
Price factor, including 3 items: saving interest rates, promotions and gifts
In the final section, customers are encouraged to assess their overall satisfaction with the savings deposit service at VIB Ha Dong This evaluation focuses on three key aspects: their level of satisfaction, their intention to continue using the service, and their willingness to recommend it to others.
The survey includes two additional questions at the end, focusing on the 2-3 key factors that significantly impact overall satisfaction levels, as well as customer comments regarding items rated as "Strongly Disagree" or "Disagree."
3.2.3 Data gathering and processing procedure
A total of 94 customers completed a counter questionnaire, while 28 participated in an online survey, which took approximately 5 to 10 minutes to fill out Ultimately, 94 counter questionnaires and 16 online surveys were collected Participants received clear guidelines and instructions for completing the questionnaires, and their responses were meticulously recorded The raw survey data was processed manually and represented in appropriate charts for each question.
The research instrument used in this research was a questionnaire survey It was conducted on 110 customers having savings accounts at VIB Ha Dong until March
2022 With the aim of improving customer satisfaction, and helping the bank to serve customers better, the survey received enthusiastic support from the participants because the survey directly benefits them
The survey creation process was meticulously overseen by the supervisor, ensuring that participants received clear instructions from the researcher before and during completion The researcher directly recorded and analyzed the gathered data, which accurately reflects customer satisfaction with the savings deposit service at VIB Ha Dong Importantly, all data remained unaltered, and the completed survey forms demonstrated consistent and logical responses, avoiding random or zigzag patterns.
This chapter outlines the proposed research model comprising six key components: reliability, responsiveness, assurance, empathy, tangibles, and price The author details the research process, which includes designing and conducting a survey, as well as collecting and analyzing data A questionnaire was administered to 110 customers at VIB Ha Dong, utilizing both paper forms at the counter and online surveys sent via email The raw data collected from the survey were manually processed and presented in appropriate charts for analysis.
FINDINGS AND DISCUSSION
Overview of Vietnam International Commercial Bank (VIB) - Ha Dong Branch 24 1 Profile of VIB
Vietnam International Commercial Joint Stock Bank, abbreviated as Vietnam International Bank (VIB), is one of the leading joint stock banks in Vietnam
Established on 18th September 1996, VIB started its operation with initial charter capital of 50 billion VND and 23 staff
For over 25 years, VIB has experienced remarkable growth, achieving significant milestones As of June 30, 2021, the bank's charter capital exceeded 15,500 billion VND, with shareholder equity at 21,048 billion VND and total assets amounting to 277 trillion VND VIB's strategic focus on retail banking is reflected in its three primary business segments: secured loans (including real estate and auto loans), insurance, and credit cards.
VIB has more than 10,000 employees serving nearly 3 million customers at 165 branches and transaction offices in 27 key provinces/ cities across the country
Over the years, the bank has garnered numerous prestigious awards at both national and regional levels Notably, in 2021, it received accolades from International Finance magazine, including "Best New Card Offering - VIB Online Plus 2in1 - Vietnam 2021" and "Most Innovative New Credit Card Service - Vietnam 2021." Additionally, VIB was recognized by The Banker for its innovative approaches in the banking sector.
Digital Banking in 2021" (Mobile Application)
4.1.2 Profile of VIB Ha Dong
4.1.2.1 History of establishment and development of VIB Ha Dong
VIB - Ha Dong Branch, established on April 13, 1996, originally operated at Km 10, Nguyen Trai Street in Ha Dong District, Hanoi On May 5, 2018, the branch relocated to its new address on the 1st and 2nd floors of Ellipse Tower, located at 110 Tran Phu, Mo Lao Ward, Ha Dong District, Hanoi.
After over 15 years of development, Ha Dong Branch always maintains its position as one of the strongest retail branches among 14 banks of VIB - South Hanoi Area
VIB Ha Dong has achieved remarkable success, ranking 1st in credit card and bancassurance profits, and 4th in capital mobilization and lending over the past five years With a clear objective to establish itself as a super branch in 2022, VIB Ha Dong is poised for continued growth and innovation in the banking sector.
The branch provides individual customers with various products which are listed below:
Cards: Debit and Credit card
Debit Card: VIB Online Plus 2in1, VIB Platinum, VIB Classic, VIB Values,
VIB Toss 2in1, VIB iCard
Credit Card: VIB Family Link, VIB Online Plus 2in1, VIB Online Plus, VIB
Premier Boundless, VIB Zero Interest Rate, VIB Happy Drive, VIB Travel Elite, VIB Cash Back, VIB Rewards Unlimited, VIB Financial Free, VIB Toss 2in1, VIB TrueCard
Loans: Mortgages, Auto loans, Personal loans, Business loans
Money-receiving services: Term deposit, Flexi deposit, Daily saving, E-savings, Foreign term deposit, Certificates of deposit, Upfront interest term deposit
Payment and transfer: Payroll service, Tax payment, Domestic transfer, Overseas transfer
Digital banking: MyVIB, My online bank, SMS banking
Other services: investing in stocks and bonds, bancassurance, etc
4.1.2.3 The organizational structure of VIB Ha Dong
Regarding organizational structure, VIB Ha Dong consists of 4 main parts
Employees in this department are called Tellers - people sitting at the counter, directly handling customer transactions
Employees in this department are called RM - those who advise and manage customers with services for individual customers: loans, savings, credit cards, etc
Employees in this department are called PB - those who advise and manage VIP customers
Employees of this department are not often present at the bank They will flexibly go among branches to support employees with professional knowledge and sales skills
Source: Customer Service VIB Ha Dong
Figure 4.1.2.3: The organizational structure of VIB Ha Dong
VIB Ha Dong has more than 50 staff In which, there are 7 staff in the customer service department (teller), 25 staff in the personal customer service department
The priority customer service department (PB) consists of 15 dedicated staff members, predominantly young and enthusiastic, with approximately 85% being female This team not only focuses on enhancing labor productivity but also actively engages in charitable activities, demonstrating their commitment to making a positive impact in the community.
4.1.3 Overview of VIB Ha Dong's capital mobilization 2019 - 2021
The situation of capital mobilization at VIB Ha Dong from 2019 to 2021 is shown below
Comparison 2020/2019 2021/2020 Number % Number % Number % Number % Number %
Source: Customer Service VIB Ha Dong Table 4.1.3: Overview of VIB Ha Dong's capital mobilization 2019 - 2021
The total capital mobilization of VIB branches in Southern Hanoi, particularly VIB Ha Dong, has shown a consistent upward trend from 2019 to 2021 In 2020, VIB Ha Dong's mobilized capital reached 1,501 billion VND, reflecting a 15% increase from 2019 In comparison, the total capital mobilized in Southern Hanoi amounted to 15,022 billion VND, which represents a 6% growth during the same period.
In 2021, VIB Ha Dong achieved a total mobilized capital of 1,735 billion VND, reflecting a significant 16% increase from 2020 In contrast, the total mobilized capital for the South of Hanoi reached 16,492 billion VND, marking a 10% rise compared to the previous year Overall, VIB Ha Dong demonstrated stronger growth than the South of Hanoi.
VIB Ha Dong consistently leads in capital mobilization profit among the 14 branches in South Hanoi, with impressive ratios of 9%, 10%, and 11% This trend has shown a steady increase from 2019 onwards, highlighting the branch's growth and effectiveness in capital management.
4.1.4 Overview of savings deposit situation at VIB Ha Dong 2019 - March 2022
4.1.4.1 Overview of savings deposit situation at VIB Ha Dong 2019 - 2021
The situation of savings deposit mobilization at VIB Ha Dong from 2019 to 2021 is shown below
Comparison 2020/2019 2021/2020 Number % Number % Number % Number % Number %
Source: Customer Service VIB Ha Dong
Table 4.1.4.1.1: Overview of savings deposit situation at VIB Ha Dong 2019 - 2021
The data indicates that savings deposits have consistently represented a significant portion of total capital mobilization, reaching nearly 94% in both 2019 and 2020 However, in 2021, this figure decreased to approximately 87%, suggesting a growing interest among individuals in alternative banking activities such as bonds and certificates of deposit Notably, capital mobilization through these alternative forms surged in 2021, totaling 223 billion VND, which marks a remarkable 137% increase compared to the previous year.
The situation of savings deposit mobilization at VIB Ha Dong sorting by types of money from 2019 to 2021 is shown below
Comparison 2020/2019 2021/2020 Number % Number % Number % Number % Number %
Comparison 2020/2019 2021/2020 Number % Number % Number % Number % Number %
Source: Customer Service VIB Ha Dong
Table 4.1.4.1.2: The situation of savings deposit mobilization at VIB Ha Dong sorting by types of money from 2019 to 2021
VIB Ha Dong primarily mobilizes capital in local currency, which consistently represents over 90% of total savings deposits In 2019, local currency deposits accounted for 94%, totaling 1,146 billion VND, while foreign currency deposits made up only 6%, or 75 billion VND Although foreign currency savings deposits increased in 2020 and 2021, reaching 97 billion VND and 121 billion VND respectively, they still constituted a small percentage of total deposits, at 7% and 8%.
4.1.4.2 Overview of savings deposit situation at VIB Ha Dong in the first 3 months of 2022
Comparison Feb/Jan Mar/Feb Number % Number % Total savings 117 121 118 4 3 -3 -2 deposit
Source: Customer Service VIB Ha Dong
Table 4.1.4.2: Overview of savings deposit situation at VIB Ha Dong in the first 3 months of 2022
In the first quarter of 2022, VIB Ha Dong experienced slight fluctuations in its savings deposits February saw an increase of 4 billion VND, marking a 3% growth from January; however, this was followed by a decrease of 3 billion VND in March, reflecting a 2% drop compared to February Bank staff attributed these changes to VIB Ha Dong's ongoing transition in its operational structure, focusing on enhancing bancassurance sales.
4.1.5 General characteristics of savings customers at VIB Ha Dong
Today, most bank savings customers are employees with modest deposits, pensions, and savings set aside for significant expenses Additionally, many individuals save substantial amounts due to the lack of appealing financial investment options, opting for savings deposits as a stable investment choice These varying motivations lead to diverse needs and requirements among savings customers.
Customers seeking to save for the future prioritize the safety and reliability of their chosen bank, valuing familiarity and trust In contrast, those depositing for profit focus more on competitive interest rates and the ease of transactions However, all customers share common expectations: a satisfactory monthly return, friendly service from staff, convenient deposit and withdrawal processes, attentive customer care, and the overall reputation of the savings bank.
Ha Dong, a densely populated city, has experienced significant development since becoming a district of Hanoi in 2009 It ranks as the third most populous district among Hanoi's 30 districts and hosts numerous key administrative agencies The business landscape in Ha Dong is vibrant, characterized by modern buildings, numerous companies, and urban areas The banking sector is highly competitive, featuring various banks that offer high-quality and diverse products and services Joint-stock and foreign banks in particular are agile in marketing their offerings With residents possessing high levels of knowledge and income, customers in Ha Dong demand superior savings deposit services and have a wide array of banking options, presenting both opportunities and challenges for VIB in capital mobilization.
4.2 Research result and discussion 4.2.1 Descriptive statistics of the study sample
According to the above results, with 2 criteria male and female, the research sample has
In the study, female customers constitute 59.10% of the sample, while male customers account for 40.90%, highlighting a significant gender disparity The predominance of female participants aligns with the trend in Vietnam, where women typically manage and control household spending This insight underscores the crucial role of female consumers in the market.
Figure 4.2.1.1: Sample structure by gender
Female Male research on customer satisfaction will become more accurate because women often have a more careful, meticulous and comprehensive assessment than men
CONCLUSION AND RECOMMENDATION
Conclusion
Assessing customer satisfaction with the bank's savings deposit service is a topic that is not too strange for us However, despite being established for a long time, VIB
There has been no formal research conducted on the savings deposit service at VIB Ha Dong However, the author has provided a comprehensive evaluation of this service during the research period.
The research identified six key factors influencing customer satisfaction in savings deposit services, ranked from highest to lowest as follows: Reliability, Tangibles, Empathy, Responsiveness, Price, and Assurance Assurance, Responsiveness, and Price are the top three factors affecting satisfied customers, while Reliability, Responsiveness, and Price significantly impact unsatisfied customers Notably, loyal customers prioritize Reliability and Assurance, whereas new customers focus more on Price Additionally, customers depositing larger amounts tend to value Assurance over Price, and older customers (56 and above) emphasize Empathy, contrasting with younger customers who prioritize Price.
This study validates the theories of Zeithaml and Bitner (2012) regarding customer satisfaction and Parasuraman et al (1988) concerning service quality Based on the findings, the author recommends several key strategies, including enhancing information security for customers, improving the professional skills of bank staff, and increasing communication efforts related to customer care policies and bank promotions.
This study acknowledges certain limitations, including a restricted number of online savings customers interviewed and the absence of in-depth interviews to explore external factors affecting customer satisfaction The author welcomes feedback from experts and readers to enhance this research and improve future studies.
Recommendations
For banks, trust and reputation are paramount, particularly for individual customers depositing their savings Customers are increasingly influenced by these factors, as the prestige and reliability of a bank significantly impact their decision-making process regarding where to invest their money While establishing trust is challenging, sustaining and enhancing it is even more difficult.
Customers express high satisfaction with VIB Ha Dong's reliability, which ranks the highest among six key factors influencing overall customer satisfaction Given its significant impact, the bank must prioritize this aspect to maintain trust To enhance credibility further, VIB Ha Dong should implement strategic improvements.
To effectively expand advertising channels, it is crucial to cultivate a professional image and strong brand culture that resonates with customers This can be achieved through well-designed leaflets, posters, banners, and slogans, as well as an appealing overall design for headquarters and transaction offices Additionally, promoting fundraising initiatives for scholarships, charitable activities, and local sports sponsorships will enhance the bank's community presence By strengthening the brand image, customers will develop trust and confidence in the bank, encouraging them to recommend its services to friends and family.
To enhance the security of customer information, banks must invest in modern technology that protects personal and transaction data from external threats Additionally, implementing stricter regulations for bank staff is crucial to ensure the absolute confidentiality of customer information, preventing any unauthorized sharing in any form.
In addition, the bank should display more awards, outstanding achievements, vision, and mission of the bank to increase persuasion and create more trust in each customer
Responsiveness is not highly satisfied by customers when it ranks 4th out of 6 factors, but it is the 2nd most influential factor on the overall level of customer satisfaction
The bank will hold a meeting to underscore the importance of promptly addressing customer challenges and unusual situations to the best of employees' abilities Staff will be encouraged to provide clear and comprehensive guidance on savings deposit procedures, ensuring that customers find the information easy to understand and access quickly Additionally, employees are reminded to seek assistance from colleagues and supervisors if they are overwhelmed with urgent tasks.
The bank needs to shorten the time it takes for bank tellers to serve customers by:
To enhance customer service, it is essential to provide thorough training for bank tellers, ensuring they are highly proficient before interacting with customers at the counter Streamlining the transaction process can be achieved by minimizing the requirement for customers to fill out personal information on paper forms, promoting online transactions, and simplifying overall procedures for greater efficiency.
Customer satisfaction with the bank's savings deposit service is notably low, making it the least satisfying factor However, this dissatisfaction significantly impacts overall customer perceptions of the service.
The quality of savings deposit services at banks heavily relies on the human factor, as bank staff and tellers are the primary point of contact for customers To enhance customer satisfaction and establish a competitive edge over other commercial banks, it is crucial for banks to invest in improving the service capabilities of their employees.
To enhance professional expertise, it is essential to regularly conduct training courses and assessments, ensuring employees continually update their knowledge Additionally, fostering an understanding of economic principles among staff will empower them to effectively address inquiries and provide optimal advice to customers.
Regularly setting up training courses on soft skills for employees, so that employees can convey information to customers in the most understandable and convincing way
Hosting regular experience-sharing meetings among employees fosters a collaborative learning environment, allowing new staff to gain insights from more experienced colleagues This initiative enables skilled employees to offer guidance and support, helping newcomers navigate challenging situations effectively.
Training employees with good moral qualities , thoughtful and dedicated service attitude; ability to communicate with customers in a considerate, polite; team spirit; discipline, and high creativity
Customers express moderate satisfaction with this factor, ranking it third among six However, its impact on overall customer satisfaction regarding savings deposit services is limited, as it ranks fourth in importance.
To enhance customer satisfaction, banks must focus on providing solutions that prioritize customer care and engagement Customers are more likely to feel valued and satisfied when they receive personalized attention and have the opportunity to share their suggestions with bank staff Implementing these strategies can significantly improve the overall customer experience.
The bank prioritizes enhancing employee empathy through regular sharing meetings Employees are encouraged to actively listen and express gratitude for customer feedback, fostering a sense of care and respect Remembering customer names further personalizes interactions, making clients feel valued Prior research on customer needs before meetings allows staff to demonstrate appreciation and understanding During direct interactions, it is crucial for bank staff to be attentive to customer emotions, providing clear and patient explanations to alleviate any concerns about the bank's services.
Creating a suggestion box at the bank so that customers can give their opinions directly instead of talking through the staff
Equipping additional equipment to assess customer satisfaction after using the service The device is a touch screen consisting of 5 rating levels:
The staff will ask the customer for a review after completing the transaction at the counter
Bank needs to pay more attention to the promotion of customer care policies and projects Communication needs to take place early (about 5-7 days before) for projects
And for customer care policies that take place continuously, bank staff need to inform all customers, regardless of the deposit amount, and time of using the service
In addition, the bank can display those programs through led screens at the bank, banners in the lobby, and make full use of social networks
Customers rated this factor as the second most important out of six, indicating a level of satisfaction; however, it ultimately has minimal impact on the overall customer satisfaction regarding savings deposit services, where it ranks last among the six factors.
However, the upgrade of facilities helps customers to clearly aware of the financial strength, safety and comfort, and professionalism of the bank
To enhance operational efficiency and customer satisfaction, several facility upgrades are essential Increasing the number of phone lines will enable simultaneous calls, ensuring smooth communication A stronger Wi-Fi system is necessary for customers during transactions, while additional backup seating is crucial during peak hours to accommodate high demand Regular maintenance and prompt repairs of banking machinery and equipment will minimize disruptions Furthermore, installing more ATMs in densely populated areas like Yen Nghia and Ba will provide convenient access to cash for residents living farther from the bank.
La, Duong Noi, etc., and others that need a lot of transactions such as schools, industrial parks, etc