ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANHLÊ QUANG MẠNH IMPROVING THE QUALITY OF RETAIL BANKING SERVICE AT OCEAN COMMERCIAL ONE MEMBER LIMITED LIABILITY BANK - QUANG NINH BRAN
THEORETICAL AND PRACTICAL BASIS OF QUALITY RETAIL
0T
Management organization model of OceanBank - Quang Ninh Branch
The Quang Ninh Branch of OceanBank, established in 2008, is one of the bank's original four branches, boasting 15 years of experience in the financial sector.
Brand name: Ocean Commercial One Member Limited Liability Bank — Quang Ninh Branch.
Abbreviated name: OceanBank Quang Ninh.
Branch headquarters address: 25/4 Street, Group 41, Sub-district 3, Bach Dang Ward,
Figure 2.1 Organizational chart of Quang Ninh Branch Organizational structure of the Board of Directors at the branch headquarters: Including 01 Director and 01 Vice Director.
The Branch Director oversees all operations and ensures business efficiency at the branch, directly managing both the Corporate Customer Department and the Administration - General Department.
- Branch’s Vice Director: Directly directs the Personal Customer Department and Customer Service Department.
The main task of Quang Ninh Branch is to stabilize the branch's operations in terms of people as well as physical conditions and begin implementing business activities, attracting customers,
The Quang Ninh Branch has achieved significant early success in its business operations, demonstrating strong and stable growth Notably, it stands out as the only branch within the business system to generate profits in its initial years.
* Quang Ninh Branch operates according to the following contents:
- Receive demand deposits, term deposits, savings deposits and other types of deposits.
- Issuing certificates of deposit, promissory notes, bills, and bonds to mobilize domestic and foreign capital.
- Forms of credit being provided: Loans; discount, rediscount of negotiable instruments and other valuable papers; bank guarantee; credit card issuance; domestic factoring; international factoring.
- Open payment accounts for customers
- Payment forms: Providing domestic payment services including checks, payment orders, payment orders, collections, collection orders, letters of credit, bank cards, collection and payment services; perform international payment services.
Borrowing capital from the State Bank can be done through refinancing, as outlined in the Law on the State Bank of Vietnam and the directives provided by the State Bank of Vietnam.
- Borrow capital from domestic and foreign credit institutions and financial institutions according to the provisions of Law and Instructions of the State Bank of Vietnam.
To open an account, individuals can establish a deposit account at the State Bank of Vietnam, ensuring that the average balance meets the required reserve Alternatively, they can open a payment account at a different credit institution or set up deposit and payment accounts overseas in compliance with foreign exchange regulations.
- Organizing participation in payment systems: Organizing internal payments, participating in the national interbank payment system; participate in the international payment system.
- Contribute capital and buy shares according to the provisions of Law and Instructions of the State Bank of Vietnam.
- Participate in the currency market: Bidding on treasury bills, buying and selling negotiable instruments, government bonds, treasury bills, State Bank bills and other valuable papers in the currency market.
- Trading and providing foreign exchange services on the domestic market and on the international market within the scope prescribed by the State Bank of Vietnam.
- Entrust, accept entrustment, agent in fields related to banking activities, insurance business, asset management according to the provisions of law and instructions of the State Bank of Vietnam.
Our company offers a range of legally prescribed business activities, including cash management services, banking and financial consulting, and asset management We also provide cabinet and safe rental, corporate finance consulting, as well as mergers and acquisitions advisory services Additionally, we specialize in investment consulting, trading government and corporate bonds, currency brokerage services, and gold trading.
Results of business and service activities of OceanBank - Quang Ninh
Despite the challenges posed by a fluctuating economy and the aftermath of the Covid-19 pandemic, the Quang Ninh Branch of the banking industry has successfully stabilized its structure Through strategic vision, precise management, and strong internal solidarity, the branch has achieved stable, safe, and effective development.
Table 2.1 Compare some business indicators of Quang Ninh Branch in 2022 with some other branches
Item Quang Hai Nghe An Note
Ninh Duong | Branch Branch | Branch
Total capital | 757.125 | 831.506 | 791.103 | The branch's mobilization is mainly mobilized from the resident, so its sustainability
(stability) is higher than the other two branches, which are mainly economic organizations.
Source: Report on business performance of Quang Ninh, Hai Duong, Nghe An Branch in 2022
The Quang Ninh Branch operates under a multi-function model that includes capital mobilization, lending, and non-credit activities, with a primary focus on lending and capital mobilization The branch excels in capital mobilization, effectively meeting lending demands while significantly contributing to OceanBank headquarters, thereby generating substantial revenue for the industry Lending activities are prioritized and executed efficiently, resulting in a consistent monthly increase in the branch's debt balance An assessment of the branch's business performance in 2022 is illustrated through a comparative data table with other branches in the coastal region.
Despite being newly established, the Quang Ninh Branch has demonstrated impressive performance in both mobilization and lending, showcasing its effectiveness and competitiveness with other branches in the region.
In 2022, the Quang Ninh Branch achieved remarkable success in capital mobilization, recognizing it as a key strategic task that significantly contributes to bank profits The branch effectively tapped into idle capital from residents and economic organizations through diverse mobilization methods As a result, the total capital mobilized reached 104 billion VND, with a year-end balance of 757,125 billion VND, successfully completing 87% of the assigned plan.
Table 2.2 Table of capital mobilization structure for Quang Ninh Branch in 2022
The capital mobilization structure of the Quang Ninh Branch reveals that the predominant source of mobilized capital comes from term deposits by residents Recently, the branch has effectively engaged in promotional activities and customer outreach, leading to a significant increase in capital from resident accounts Conversely, capital from economic organizations remains minimal due to recent economic fluctuations, which have caused many businesses to experience financial difficulties and limited idle funds in payment accounts The strategy to enhance the scale and proportion of capital mobilized from the population aligns well with current business objectives, as this source is notably stable.
Despite the Quang Ninh Branch's outstanding balance of 477 billion VND being modest, it stands out positively when compared to other local banks Over the past year, the branch has maintained a solid total debt balance, showcasing a diverse loan structure that caters to a wide range of borrowers, including businesses, individuals, and households Additionally, the branch offers loans in various currencies with flexible terms.
Table 2.3 Credit structure of Quang Ninh Branch in 2022
Item Closing debt balance Proportion (%)
Source: Summary report of debt balance of Quang Ninh Branch in 2022
The Quang Ninh Branch's credit granting ratio reflects its effective implementation of a business strategy focused on individual customers, tailored to the economic conditions of Quang Ninh province The branch primarily targets individual clients with stable incomes, offering financing based on viable business plans or genuine personal consumption needs to ensure debt repayment capability Due to the economic downturn caused by the Covid-19 pandemic and global inflation, the outstanding balance for businesses remains low, as many have reduced production and are operating at minimal levels, resulting in decreased capital needs.
The branch maintains a balanced and safe ratio of medium-term, long-term, and short-term loans, continuously adjusting the loan distribution to align with mobilized capital This strategy aims to enhance business efficiency in both credit management and capital utilization.
In 2022, the Quang Ninh Branch experienced stability despite being a 15-year-old institution that required personnel restructuring and operational stabilization Competing with local banks and managing various costs, the branch achieved a profit of 2,802 million VND, successfully meeting its assigned objectives.
The business performance of OceanBank - Quang Ninh Branch showed steady growth across all indicators compared to the previous year, with the exception of costs, which decreased due to initial investments in facilities, human resources, and marketing This positive trend suggests a growing customer trust in the bank's services and highlights the increasing demand for customer service in Quang Ninh, a promising market To capitalize on this potential, it is essential to implement policies that enhance service quality and customer care.
Table 2.4 Business performance results of Quang Ninh Branch in 2022
No Item Year Year Compare 2022/2021
1 In come from interest and 70.865 84.171 13.306 118,7 interest equivalents
2 Non-interest expenses 1.193 1.387 194 116,2 il Operating expenses 3.769 6.206 2.437 164,6
Source: Report of business performance of OceanBank - Quang Ninh Branch in 20222.2 Objectives and business direction of OceanBank - Quang Ninh Branch
Business operations objectives of OceanBank - Quang Ninh Branch
OceanBank - Quang Ninh Branch aims to achieve sustainable development and deliver top-notch service quality that meets international standards The branch is committed to establishing effective partnerships with both domestic and international financial institutions.
In 2024, the economy is expected to maintain its recovery momentum with a growth rate of 7.2% and inflation below 5% As mobilization and lending interest rates decline, OceanBank is prioritizing the stabilization of its system and ensuring continuous, safe operations while maintaining liquidity The bank aims to grow credit safely and effectively, address existing challenges, manage bad debts, and strictly control debt quality Additionally, OceanBank plans to enhance service revenue, improve net interest income, and manage operating costs in alignment with its business performance goals.
To enhance competitiveness and strengthen brand positioning in the banking sector, it is essential to develop a comprehensive strategy that focuses on diversifying banking products and services tailored to customer needs This involves maintaining core services while continuously expanding and innovating modern offerings Emphasizing the improvement of service quality, streamlining procedures, and enhancing transaction processes will further promote the growth of banking services Additionally, deploying high-tech banking solutions will ensure that customer demands are met effectively.
44 customers’ need Focus on products with outstanding characteristics compared to other products to create a difference in competition.
To enhance operational efficiency, banks should establish a modern operating model equipped with advanced technology and a team of highly skilled professionals By consolidating specialized functional departments within the operating system, banks can maximize effectiveness Additionally, investing in staff training to elevate professional qualifications will ensure a quick-witted workforce that is adept at understanding market needs and trends.
To establish a robust and expansive customer network, it is essential to develop a strong customer base and increase market share by offering a diverse range of products This involves creating a well-structured distribution channel that ensures timely and convenient access to products and services for all customers Additionally, fostering sustainable relationships built on trust will promote long-term cooperation and loyalty among customers.
The Quang Ninh Branch is dedicated to enhancing local capital by frequently introducing flexible financial products that cater to diverse customer needs Its primary focus is on residents with high and stable incomes, while also attracting investments from other individuals The branch is committed to improving customer acquisition and support through adaptable policies, utilizing funds sourced from local economic organizations Additionally, it promotes salary payment services via accounts to drive credit growth By maintaining relationships with existing clients and actively seeking new ones, the branch emphasizes tailored expertise for each customer segment.
The branch's credit development strategy focuses on high-income individuals and small to medium enterprises, while also targeting large clients, particularly those in the Coal Group To foster sustainable relationships, the branch will identify strategic partners and potential customers, proactively reaching out to them It aims to create tailored products and preferential policies that cater to the specific needs of each customer group Additionally, the branch is committed to actively seeking and developing key customers, ensuring readiness to provide substantial credit based on viable projects and plans.
Business operations direction of OceanBank - Quang Ninh Branch
In recent years, OceanBank's retail banking strategy, particularly at the Quang Ninh Branch, has prioritized the development of professional retail products tailored to meet diverse customer needs and capabilities The objective is to evolve into a modern, multifunctional bank that holds a significant position as a leading domestic commercial joint-stock bank, backed by robust financial strength.
OceanBank - Quang Ninh Branch is leveraging its robust customer network, industrial systems, human resources, and technology to position itself among the top 10 banks By diversifying retail products and enhancing service quality, the bank aims to meet the growing demands of customers and boost its competitiveness against other banks in Quang Ninh province.
To be able to achieve the set goals, the business direction of OceanBank - Quang Ninh Branch is proposed as follows:
- Develop a human resource development strategy and train professional staff to ensure the system's operation is continuous, smooth and highly effective.
To strengthen OceanBank's position in Vietnam's banking sector, it is essential to optimize capital resources and uphold a high standard of financial safety This approach will enable the organization to effectively navigate and overcome challenges within the dynamic banking environment.
- Build a professional, synchronous and effective risk management system to ensure the bank always has sustainable growth.
- Strong growth by creating a difference based on understanding customer needs, being customer oriented and meeting all customer needs.
- Expand the network in developed economic regions across the country, and develop distribution channels through investment and development of modern banking technology.
- Participate in alliances to expand the scope and scale of operations, seek strategic partners to build and develop banking products and services according to international standards.
- Building the culture of OceanBank to become a spiritual element that unites the entire system.
Subjective factors affecting the quality of retail banking services of
- Facilities and equipment of the branch
The banking industry is fundamentally a service-oriented business, making a positive first impression on customers crucial When clients visit a bank, the quality of its facilities, equipment, and overall design significantly influences their perception of the bank's service quality and capacity Consequently, the aesthetics and functionality of a bank's environment play a pivotal role in customers' decisions to engage in transactions Recognizing this, the Quang Ninh Branch has meticulously designed its headquarters to feature a spacious, modern, and visually appealing interior and exterior, enhancing the overall customer experience.
46 according to Oceanbank's model so that customers can immediately recognize the image of
Oceanbank's branch headquarters features two identical facades, each exceeding 8 meters in width The standardized equipment aligns with the model, while the spacious and prominent surroundings enhance visibility Well-placed advertising signs and images ensure easy observation, effectively attracting customers.
The interior layout of the headquarters is thoughtfully organized, with transaction counters positioned for optimal convenience for customers Comfortable waiting areas are strategically placed near shelves that showcase product advertising leaflets, catalogs, and bank brochures, facilitating easy access for customers to research products.
To create a comfortable and inviting environment for customers, the air conditioning is kept on continuously, while the space is enhanced with shelves filled with books, newspapers, and daily magazines for news updates The design of the customer consultation area prioritizes discretion and luxury, complemented by a dedicated section for VIP clients to conduct important transactions Additionally, a customer instruction counter at the entrance ensures a warm welcome, guiding and caring for customers as they wait, and expressing gratitude upon their departure This thoughtful arrangement and attentive service significantly enhance the overall quality of the branch.
Human resources play a crucial role in determining the quality of banking services, as they significantly influence human factors When other resources are on par, the effectiveness of human resources becomes the key differentiator that establishes a bank's unique identity and competitive edge.
Table 2.5 Human resource structure of Quang Ninh Branch
Male | Female | 35 | University | College | Postgraduate
The Quang Ninh Branch of OceanBank currently employs a total of 25 staff members, comprising 10 males and 15 females The majority of the workforce is within the age range of 20 to 35 years.
All employees possess college and university degrees, ensuring a highly educated workforce The leadership team and Board of Directors bring extensive experience in banking and financial management, while younger subordinate officers are well-trained, qualified, and dedicated to industry development This combination of seasoned management and the youthful energy, creativity, and enthusiasm of staff creates a strong foundation for stabilizing and enhancing the branch's human resources, ultimately leading to improved banking service quality.
The quality of a bank's service is significantly influenced by factors such as employee appearance, clothing, and service style Since employees interact directly with customers, their professional image plays a crucial role in establishing customer trust in both the employees and the bank itself The Quang Ninh Branch has implemented clear regulations regarding employee uniforms, ensuring that they are fashionable and dynamic, which fosters a friendly and professional atmosphere for customers.
At Quang Ninh Branch, all employees undergo a rigorous three-round recruitment process, including application review, professional knowledge and English testing, and a direct interview This ensures that all staff possess uniform professional qualifications and in-depth knowledge The branch prioritizes human resource development in its strategic planning, focusing on building a skilled workforce that aligns with its growth objectives Training activities are designed to enhance professional capabilities, knowledge, and administrative skills, ultimately improving service quality and customer satisfaction while maximizing company profits.
The branch prioritizes customer care and development by implementing tailored policies for various customer groups to enhance satisfaction Continuous training sessions for staff focus on improving service quality, which is evident in their friendly demeanor, quicker complaint resolution, and a comfortable transaction environment that minimizes wait times Despite these advancements, there remains a need for further improvements to ensure an even better customer experience.
48 unnecessary transaction procedures, attentively serving and creating goodwill for customers in order to bring the best satisfaction to customers.
The Quang Ninh Branch recognizes that its impressive business results in 2022 were made possible by the trust and support of its customers Consequently, prioritizing customer satisfaction drives all branch activities and serves as a key motivation for enhancing banking service quality To foster strong customer relationships, the branch implements dedicated care programs, including customer visits and invitations to explore new products and promotional offers Additionally, maintaining close communication allows the branch to understand evolving customer needs and address personal concerns, ultimately boosting empathy, trust, and service quality to ensure customer retention.
The Quang Ninh Branch is dedicated to expanding its customer base and enhancing brand visibility through attractive promotions and new product introductions across mass media platforms like television and newspapers This strategy aims to attract new clients while retaining existing ones, ultimately increasing market share and showcasing the branch's growth in service quality within the competitive banking sector.
The Quang Ninh Branch has significantly enhanced its operational management by establishing a well-defined organizational structure that includes specialized departments such as Customer Service, Personal Customer, and Corporate Customer This structure facilitates a diverse range of products and services, making transactions more convenient for clients A cohesive management system across departments ensures effective deployment of services tailored to each department's functions With a focus on professionalism, the branch boasts qualified and experienced staff who operate independently while fulfilling their responsibilities Customer specialists, equipped with marketing expertise, effectively promote a variety of banking products and services, contributing to a growing and diverse customer base.
Banking service staff are typically enthusiastic and well-trained, equipped with strong communication skills and a professional demeanor Their high qualifications and experience enable them to serve customers diligently, fostering lasting relationships and customer loyalty.
The Human Resources Department actively recruits qualified staff and regularly mobilizes employees to meet the branch's customer transaction needs By prioritizing flexibility, the branch effectively combines training with strategic job assignments, ensuring that each employee is placed in roles that align with their professional capabilities.
Evaluate the scale ANd ÍACÍOTS c3 E3 3813 EEEEEEseEkeekreesreerree 57 2.4 General assessment of the current state of retail banking service quality
As a newly established bank in Quang Ninh province, OceanBank - Quang Ninh Branch recognizes that enhancing service quality is its key competitive advantage.
Recognizing human resources as a vital asset, the Quang Ninh branch prioritizes enhancing the quality of its workforce This commitment aims to cultivate a team of highly skilled banking professionals who possess exceptional expertise and a strong service orientation, ultimately meeting the growing demands of customers.
- Innovate and upgrade modern banking facilities and technology to provide services quickly, accurately, securely, bringing prestige and position to the branch.
To enhance competitiveness and strengthen brand presence, banks should implement a strategy focused on diversifying and modernizing their products and services to meet customer needs This involves not only perfecting core services but also continuously expanding into innovative offerings while consistently improving service quality.
To enhance the quality of banking services, it is essential to prioritize the development and improvement of service procedures and transaction processes By leveraging high-tech banking products, financial institutions can effectively meet customer needs Emphasizing unique product features will create a competitive edge, setting these offerings apart from others in the market.
To establish a robust and efficient product distribution network, it is essential to ensure timely and convenient access to products, services, and utilities for all customers By fostering sustainable relationships and building trust, businesses can achieve long-term cooperation with their clientele, enhancing customer satisfaction and loyalty.
The Quang Ninh Branch is dedicated to enhancing its capital sources by consistently introducing new financial products that feature competitive interest rates and enticing promotions Targeting individuals with high and stable incomes, the branch also seeks to attract investments from a broader audience Furthermore, it is committed to improving customer engagement and support through adaptable policies, utilizing funds sourced from local economic organizations to boost capital mobilization efforts.
PROPOSING SOLUTIONS TO IMPROVE THE QUALITY OF
Improve human resource QIHQẽẽÍV chư 75 3.3.2 Upgrade facilities and modernize banking technology - -ôô- 78
The human resources of a bank play a vital role in its operations, making the enhancement of their quality essential for improving service standards and fulfilling the bank's long-term development goals.
A survey of 75 customers regarding employee skills at the Quang Ninh branch revealed ongoing dissatisfaction with both the attitude and service skills of staff To enhance the quality of human resources at this location, several solutions can be proposed.
To enhance the recruitment process at the Quang Ninh Branch, it is essential to adopt a more professional and comprehensive approach Effective promotion and advertising of the recruitment program are crucial to attract a diverse pool of potential candidates For key positions requiring high-quality staff, consulting with professional recruitment experts can help identify truly capable individuals Additionally, leveraging referrals from current employees and tapping into networks from other branches and banks can significantly improve the quality of candidates.
Following the recruitment process, the selection phase is crucial, where the recruitment committee meticulously reviews candidate profiles against job criteria Candidates who advance past the initial screening will then take an entrance exam designed to assess essential work skills, including communication, computer proficiency, document editing, job management, and customer service abilities The interview process should involve a comprehensive panel of experienced interviewers who present specific scenarios to evaluate candidates' competencies and skills for appropriate job placement Additionally, while skills and abilities are primary considerations, appearance criteria should not be overlooked The Quang Ninh branch should implement more formal standards in its recruitment process to enhance the quality of its human resources.
First impressions are crucial in banking, as they significantly influence customer perceptions The initial and final interactions with bank personnel, such as security guards and tellers, play a vital role in shaping these impressions Positive behavior from employees enhances service quality, fosters customer satisfaction, and encourages repeat business.
Enhancing training quality is essential for cultivating a proficient team skilled in operational standards, business ethics, and exceptional customer service By encouraging employees to pursue in-depth training in both professional and soft skills tailored to their roles, banks can ensure effective delivery of diverse services and prepare staff for increased responsibilities It is crucial to prioritize training for new employees to equip them with the necessary competencies for success.
Effective training programs should encompass 76 essential skills, including understanding organizational structure, business processes, sales techniques, customer care, product development, negotiation, and problem-solving Pairing new employees with experienced managers or senior staff allows for hands-on training and immediate assessment of the new hires' capabilities and areas needing improvement Additionally, managers require comprehensive training in strategic, marketing, risk, and quality management to enhance their ability to oversee services, customer relations, human resources, and facilities at the Quang Ninh branch It is crucial to conduct thorough evaluations of training outcomes and employee progress based on performance metrics to inform the development of tailored training policies.
To foster long-term employee loyalty and trust, the Quang Ninh branch must implement a reasonable compensation policy that includes competitive salaries and bonuses tailored to each position Establishing clear criteria for evaluating work performance—such as workload completion, quantitative metrics, timely task execution, and feedback from customers and colleagues—is essential Additionally, the branch should regularly initiate recognition and reward programs, along with quarterly and annual bonuses, to motivate staff Maintaining comprehensive policies on salaries, bonuses, insurance, vacations, and allowances, while promoting the right individuals at the appropriate times, will further enhance employee engagement and encourage a strong work ethic.
The Quang Ninh branch emphasizes the importance of cultivating a professional image among its employees to enhance customer perceptions This includes presenting a polished appearance through stylish attire and demonstrating agility, grace, and warmth in greetings Such professionalism reflects the civility and politeness of employees, contributing to a positive impression of the bank’s service quality Employees are encouraged to proactively address customer needs, prioritizing service excellence to ensure maximum satisfaction Additionally, fostering a disciplined work environment that promotes cooperation and mutual support among staff is essential for delivering outstanding customer service.
3.3.2 Upgrade facilities and modernize banking technology
The quality of banking services is significantly influenced by facilities and technology, which serve as the foundation for developing banking products Customers often assess service quality based on visible factors such as branch aesthetics, equipment, and staff support For the Quang Ninh Branch to modernize its banking technology, it must invest in advanced machinery, high-speed transmission lines, and robust security systems to enhance transaction efficiency and minimize network congestion Additionally, recruiting skilled staff to manage these systems is crucial for ensuring smooth operations and preventing errors Strengthening human resources in banking information technology is essential, enabling employees to meet the demands of new technologies and the expansion of banking services.
The branch must establish a detailed plan for acquiring suitable machinery, labor tools, and specialized equipment, ensuring that installations and layouts facilitate efficient customer transactions and staff operations Additionally, implementing a well-distributed system of POS and ATMs will enhance convenience for customers across the province.
The integration of modern technology at Quang Ninh Branch will enhance the quality of banking services, ensure operational safety, lower costs, boost management efficiency, and strengthen competitiveness against other banks.
Service amenities play a crucial role in enhancing service quality and enabling banks to compete effectively with one another As a new entrant in the Quang Ninh banking sector, it is essential for banks to offer superior service amenities to stand out in a competitive landscape.
To enhance customer experience and strengthen competitive positioning, 78 additional utilities will be introduced The effectiveness of these industrial services relies on the efficient implementation of the system Therefore, it is crucial for the industry to proactively adopt marketing strategies, promote services, optimize staffing, and invest wisely in resources as soon as new policies are established.
To enhance the convenience of personal accounts and card usage, Branch must increase the number of staff dedicated to researching and establishing additional transaction points, particularly ATMs in densely populated urban areas, shopping malls, supermarkets, universities, and large businesses Expanding card payment acceptance in these high-traffic locations will cater to the growing demand, especially in Quang Ninh province, known for its strong tourism sector and international visitors who prefer using payment cards Additionally, the branch should recommend to the Head Office the expansion of payment agents for international credit cards and traveler's checks to further benefit customers.