Luận văn thạc sĩ improving the quality of card services at bank for investment and development of vietnam sogiaodich 1 branch

These are the annual fees that cardholders must pay under the card use contract, cash withdrawal fee 4% for issuing bank and at least 50,000 VND for one transaction; fees for payment t

ĐẠI HỌC QUOC GIA IIA NOI KHOA QUAN TRI VA KINH DOANH

CAO LAN ANIT

IMPROVING THE QUALITY OF CARD SERVICES AT BANK

FOR INVESTMENT AND DEVELOPMENT OF

VIETNAM — SOGIAODICII 1 BRANCIL

NANG CAO CIIAT LUQNG DICII VU THE TAI NILTMCP BAU TU

VA PHAT TRIEN VIET NAM - CHI NHANH SO GIAO DICH 1

LUẬN VĂN THẠC SĨ QUẦN TRỊ KINH DOANH

Tà Nội - 2017

ĐẠI HỌC QUOC GIA IIA NOI KHOA QUAN TRI VA KINH DOANH

CAO LAN ANIT

TMPROVING TIIE QUALITY OF CARD SERVICES AT BANK

VIETNAM — SOGIAODICII 1 BRANCIL

VÀ PHÁT TRIÊN VIỆT NAM-— CHI NHÁNH SỞ GIAO DICII1

Chuyên ngành: Quản trị kinh doanh

Mã số: 6 34 01 02

LUẬN VAN THAC Si QUAN TRI KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM THỊ THANH HÒA

1à Nội - 2017

doanh, Trường Đại học Quốc Gia Hà Nội, đặc

nhiều kiến thức và đã tạo điều kiện giúp tôi thực hiện bán luận văn này

Tôi xin bảy tỏ lòng biết ơn chân thành đến TS Phạm Thị Thanh Hòa đã đánh nhiễu thời gian tâm huyệt, tận tỉnh hướng đẫn, chỉ bảo cho tôi trong suốt quá trình thực hiện đã tài

Tôi xin chân thành cảm ơn Ban lãnh đạo Ngân hàng Thương Mại Cổ Phin Diu

‘Tu va Phát Iriển Việt Nam chỉ nhánh Sở Giao Dịch 1 và các anh chị em ở các phòng nghiệp vụ của chỉ nhành và phòng giao dich đã tạo điều kiện thuận lựi, giúp đỡ lôi

trong việc thu thập số liệu và những thông tin cần thiết cho việc nghiên cửu luận văn này

'tôi xin chân thành cảm ơn gia đình, bạn bè và đồng nghiệp đá đông viên khích lệ và

giún đỡ lôi trang quá tình học lập và nghiên củu

SERVICES OF COMMERCIAL BANKS

1.1 Overview of card services a1 commercial hanks

LLI Definition and characteristics af card services of commercial bank 5 1.1.3 The role and henefits of card services of commercial banks

113 Main activities of card services at commercial banks

1.2 Quality of card services at commercial banks 10

12.1 Definition of card service quality - ~ 10 1.2.2 The necessity of improving card operabons of commercial banks 10 1.2.3 Evaluation models of card service quality at conmiercial banks 11

4.3, Experience in enhancing the quality of card services at some banks and lessons

LBL Experience 1 7g n ố ố ố ố 1.3.2 Experience of domestic conmercial hanks - ¬- 1.3.3 Rxperionce lessons drawn for BIDY — Sogiandich 1 Branch co 1D

CHAPTER 2: REALITY OF CARD SERVICE QUALITY AT BIDV

2.3, LACHICVEMENES occ ses susatiesssaninieessessiniiesias suessenineiecesnsaeienseasies OO

iandich 1 Branch 50

ACKNOWLEDGEMENT

I would like to express my deep gratitude to the teachers of the Hanoi school of

Business and Management, Viemam National University, especially the teachers who

imparted to me a lot of knowledge and helped me Carry out this essay

I would like to cxpress sinecre gratitude to TS Pham Thi Thanh Hoa has spent a lot

of time, dedicated guidance, only told me during the course of the topic

T would like lo express my sincere thanks Lo the Board of Direclors of Joint, Stock Commercial Bank for Investment and Development of Vietnam Sogiaodich 1 Branch and for the siblings in the professional sections of branches and transaction offices who ccalod favorable conditions Help me in collecting data and information nccdod for thơ study of this thesis

I sincerely thank family, friends and colleagues for encouraging and supporting me

in the process of study and research

Hanoi, date 25 month 5 year 2017

Student

CAO LAN ANH

2.3.2 Limitations and causes - M

CHAPTER 3: SOLUTIONS TO IMPROVE TIE QUALITY OF CARD SERVICES

AT BIDV — SOGIAODICH 1 BRANCH

3.1 Developing orientations of card operations at the bank

3.2.1 investing solutions to improve facilities and demand meeting ability 5

3.2.2 Solutions to improve service deployment outcome - SF 3.2.3 Solutions to complete the service providing process 59 4.2.4 Solutions ta complete the managentent operation - .Ổ)

3.2.5 Solutions to strengthen the brandi tmaae oƒ the branch - - ø2

3.2.6 Salutions to enhance responsibility with society and comunity G3

3.3.4 Reccomendations to the State Bank 63

3.3.2 Recommendations to BIDV Head Office 64

3.4.3 Recommendations to the association of card issuing and payment banks 66

CONCLUSIONS, LIMITATIONS, ANT CONTRIBUTIONS OF THE STUDY

REFERENC

APPENDIX

SERVICES OF COMMERCIAL BANKS

1.1 Overview of card services a1 commercial hanks

LLI Definition and characteristics af card services of commercial bank 5 1.1.3 The role and henefits of card services of commercial banks

113 Main activities of card services at commercial banks

1.2 Quality of card services at commercial banks 10

12.1 Definition of card service quality - ~ 10 1.2.2 The necessity of improving card operabons of commercial banks 10 1.2.3 Evaluation models of card service quality at conmiercial banks 11

4.3, Experience in enhancing the quality of card services at some banks and lessons

LBL Experience 1 7g n ố ố ố ố 1.3.2 Experience of domestic conmercial hanks - ¬- 1.3.3 Rxperionce lessons drawn for BIDY — Sogiandich 1 Branch co 1D

CHAPTER 2: REALITY OF CARD SERVICE QUALITY AT BIDV

2.3, LACHICVEMENES occ ses susatiesssaninieessessiniiesias suessenineiecesnsaeienseasies OO

iandich 1 Branch 50

ACKNOWLEDGEMENT

I would like to express my deep gratitude to the teachers of the Hanoi school of

Business and Management, Viemam National University, especially the teachers who

imparted to me a lot of knowledge and helped me Carry out this essay

I would like to cxpress sinecre gratitude to TS Pham Thi Thanh Hoa has spent a lot

of time, dedicated guidance, only told me during the course of the topic

T would like lo express my sincere thanks Lo the Board of Direclors of Joint, Stock Commercial Bank for Investment and Development of Vietnam Sogiaodich 1 Branch and for the siblings in the professional sections of branches and transaction offices who ccalod favorable conditions Help me in collecting data and information nccdod for thơ study of this thesis

I sincerely thank family, friends and colleagues for encouraging and supporting me

in the process of study and research

Hanoi, date 25 month 5 year 2017

Student

CAO LAN ANH

LIST OF FIGURES

Figure 1.1; Research model of Parasuramian et al (1988)

Higure 1.2: Research model of ''hai Van Vinh va Devinder Grewal (2007)

Figure 1.3: Research model of Tynh Thuy Phuong (2010)

Figue 1.4; Rescarch model of Nguyen Thi Kicu Linh (2008) so

Figure 1.5: Research model of L8 ‘Thi ‘Thu Huong (2014)

Figure 1.6: Proposed research model

2.3.2 Limitations and causes - M

CHAPTER 3: SOLUTIONS TO IMPROVE TIE QUALITY OF CARD SERVICES

AT BIDV — SOGIAODICH 1 BRANCH

3.1 Developing orientations of card operations at the bank

3.2.1 investing solutions to improve facilities and demand meeting ability 5

3.2.2 Solutions to improve service deployment outcome - SF 3.2.3 Solutions to complete the service providing process 59 4.2.4 Solutions ta complete the managentent operation - .Ổ)

3.2.5 Solutions to strengthen the brandi tmaae oƒ the branch - - ø2

3.2.6 Salutions to enhance responsibility with society and comunity G3

3.3.4 Reccomendations to the State Bank 63

3.3.2 Recommendations to BIDV Head Office 64

3.4.3 Recommendations to the association of card issuing and payment banks 66

CONCLUSIONS, LIMITATIONS, ANT CONTRIBUTIONS OF THE STUDY

REFERENC

APPENDIX

2.3.2 Limitations and causes - M

CHAPTER 3: SOLUTIONS TO IMPROVE TIE QUALITY OF CARD SERVICES

AT BIDV — SOGIAODICH 1 BRANCH

3.1 Developing orientations of card operations at the bank

3.2.1 investing solutions to improve facilities and demand meeting ability 5

3.2.2 Solutions to improve service deployment outcome - SF 3.2.3 Solutions to complete the service providing process 59 4.2.4 Solutions ta complete the managentent operation - .Ổ)

3.2.5 Solutions to strengthen the brandi tmaae oƒ the branch - - ø2

3.2.6 Salutions to enhance responsibility with society and comunity G3

3.3.4 Reccomendations to the State Bank 63

3.3.2 Recommendations to BIDV Head Office 64

3.4.3 Recommendations to the association of card issuing and payment banks 66

CONCLUSIONS, LIMITATIONS, ANT CONTRIBUTIONS OF THE STUDY

REFERENC

APPENDIX

SERVICES OF COMMERCIAL BANKS

1.1 Overview of card services a1 commercial hanks

LLI Definition and characteristics af card services of commercial bank 5 1.1.3 The role and henefits of card services of commercial banks

113 Main activities of card services at commercial banks

1.2 Quality of card services at commercial banks 10

12.1 Definition of card service quality - ~ 10 1.2.2 The necessity of improving card operabons of commercial banks 10 1.2.3 Evaluation models of card service quality at conmiercial banks 11

4.3, Experience in enhancing the quality of card services at some banks and lessons

LBL Experience 1 7g n ố ố ố ố 1.3.2 Experience of domestic conmercial hanks - ¬- 1.3.3 Rxperionce lessons drawn for BIDY — Sogiandich 1 Branch co 1D

CHAPTER 2: REALITY OF CARD SERVICE QUALITY AT BIDV

2.3, LACHICVEMENES occ ses susatiesssaninieessessiniiesias suessenineiecesnsaeienseasies OO

iandich 1 Branch 50

2.3.2 Limitations and causes - M

CHAPTER 3: SOLUTIONS TO IMPROVE TIE QUALITY OF CARD SERVICES

AT BIDV — SOGIAODICH 1 BRANCH

3.1 Developing orientations of card operations at the bank

3.2.1 investing solutions to improve facilities and demand meeting ability 5

3.2.2 Solutions to improve service deployment outcome - SF 3.2.3 Solutions to complete the service providing process 59 4.2.4 Solutions ta complete the managentent operation - .Ổ)

3.2.5 Solutions to strengthen the brandi tmaae oƒ the branch - - ø2

3.2.6 Salutions to enhance responsibility with society and comunity G3

3.3.4 Reccomendations to the State Bank 63

3.3.2 Recommendations to BIDV Head Office 64

3.4.3 Recommendations to the association of card issuing and payment banks 66

CONCLUSIONS, LIMITATIONS, ANT CONTRIBUTIONS OF THE STUDY

REFERENC

APPENDIX

LIST OF FIGURES

Figure 1.1; Research model of Parasuramian et al (1988)

Higure 1.2: Research model of ''hai Van Vinh va Devinder Grewal (2007)

Figure 1.3: Research model of Tynh Thuy Phuong (2010)

Figue 1.4; Rescarch model of Nguyen Thi Kicu Linh (2008) so

Figure 1.5: Research model of L8 ‘Thi ‘Thu Huong (2014)

Figure 1.6: Proposed research model

ABBREVIATION

Meaning of acranyra

BIDV Joint Slock Commercial Bank for Investment and Development of

Vietnam

PIN Personal Identification Number

INTRODUCTION

1 Rationale of the study

Nowadays, the increasing development of science and technology contributes

considerably to the improvement of people’s life quality People are more and more accessible to safer and more sophisticated service products Banking service products are

one of the breakthroughs on the basis of modern science and technology One of those

service products is bank cards Customers using cards can conveniently carry out many

transactions such as payment, transfer, cash withdrawal, internet payment, etc without

having to go to the bank As a result, card products are becoming friendlier, closer, and

being widely accepted by consumers As for the banks, card products also bring them a lot

of intangible benefits such as raising the banks’ position, promoting their brand image, and

attracting customers to the banks These are also business activities bringing revenue to the banks These are the annual fees that cardholders must pay under the card use contract,

cash withdrawal fee (4% for issuing bank and at least 50,000 VND for one transaction);

fees for payment transaction of goods and services by credit card at card accepting units

(2.5% of the value of each transaction, commercial discount (for agent banks that help

conduct payment transaction for issuing banks), some other fees such as credit card penalty

fee, checking fee (fee that cardholders pay for their checking requirements), fee for card re-

issuance (due to theft or loss) and card exchange (as requested by cardholders), fee for

posting stolen or lost cards to the list of forbidden circulation

With the advantages that card services bring, each bank has built its own strategies to

dominate the market and develop its card service brand The competition in developing

card services of commercial banks nowadays has made customers’ demands more and

more satisfied and made the card service market become more active than ever Therefore,

the improvement of card service quality is very important and necessary for commercial

banks

In the past few years, BIDV — Sogiaodich 1 Branch has implemented a lot of measures

to improve the quality of card services However, the card services of BIDV still have several shortcomings For example, many customers apply for a card issuance but do not

get the cards, causing the cost wastage for the bank The problem of overdue credit card

debt is arising, Besides, the habit of using cash has existed in Vietnamese people’s minds

for a long time Therefore, the aim of Sogiaodich 1 Branch is to improve the quality of

card services in order to expand the card product market and better control risks in card business For this reason, the author selected the topic "Improving the quality of card

1

LIST OF FIGURES

Figure 1.1; Research model of Parasuramian et al (1988)

Higure 1.2: Research model of ''hai Van Vinh va Devinder Grewal (2007)

Figure 1.3: Research model of Tynh Thuy Phuong (2010)

Figue 1.4; Rescarch model of Nguyen Thi Kicu Linh (2008) so

Figure 1.5: Research model of L8 ‘Thi ‘Thu Huong (2014)

Figure 1.6: Proposed research model

INTRODUCTION

1 Rationale of the study

Nowadays, the increasing development of science and technology contributes

considerably to the improvement of people’s life quality People are more and more accessible to safer and more sophisticated service products Banking service products are

one of the breakthroughs on the basis of modern science and technology One of those

service products is bank cards Customers using cards can conveniently carry out many

transactions such as payment, transfer, cash withdrawal, internet payment, etc without

having to go to the bank As a result, card products are becoming friendlier, closer, and

being widely accepted by consumers As for the banks, card products also bring them a lot

of intangible benefits such as raising the banks’ position, promoting their brand image, and

attracting customers to the banks These are also business activities bringing revenue to the banks These are the annual fees that cardholders must pay under the card use contract,

cash withdrawal fee (4% for issuing bank and at least 50,000 VND for one transaction);

fees for payment transaction of goods and services by credit card at card accepting units

(2.5% of the value of each transaction, commercial discount (for agent banks that help

conduct payment transaction for issuing banks), some other fees such as credit card penalty

fee, checking fee (fee that cardholders pay for their checking requirements), fee for card re-

issuance (due to theft or loss) and card exchange (as requested by cardholders), fee for

posting stolen or lost cards to the list of forbidden circulation

With the advantages that card services bring, each bank has built its own strategies to

dominate the market and develop its card service brand The competition in developing

card services of commercial banks nowadays has made customers’ demands more and

more satisfied and made the card service market become more active than ever Therefore,

the improvement of card service quality is very important and necessary for commercial

banks

In the past few years, BIDV — Sogiaodich 1 Branch has implemented a lot of measures

to improve the quality of card services However, the card services of BIDV still have several shortcomings For example, many customers apply for a card issuance but do not

get the cards, causing the cost wastage for the bank The problem of overdue credit card

debt is arising, Besides, the habit of using cash has existed in Vietnamese people’s minds

for a long time Therefore, the aim of Sogiaodich 1 Branch is to improve the quality of

card services in order to expand the card product market and better control risks in card business For this reason, the author selected the topic "Improving the quality of card

1

INTRODUCTION

1 Rationale of the study

Nowadays, the increasing development of science and technology contributes

considerably to the improvement of people’s life quality People are more and more accessible to safer and more sophisticated service products Banking service products are

one of the breakthroughs on the basis of modern science and technology One of those

service products is bank cards Customers using cards can conveniently carry out many

transactions such as payment, transfer, cash withdrawal, internet payment, etc without

having to go to the bank As a result, card products are becoming friendlier, closer, and

being widely accepted by consumers As for the banks, card products also bring them a lot

of intangible benefits such as raising the banks’ position, promoting their brand image, and

attracting customers to the banks These are also business activities bringing revenue to the banks These are the annual fees that cardholders must pay under the card use contract,

cash withdrawal fee (4% for issuing bank and at least 50,000 VND for one transaction);

fees for payment transaction of goods and services by credit card at card accepting units

(2.5% of the value of each transaction, commercial discount (for agent banks that help

conduct payment transaction for issuing banks), some other fees such as credit card penalty

fee, checking fee (fee that cardholders pay for their checking requirements), fee for card re-

issuance (due to theft or loss) and card exchange (as requested by cardholders), fee for

posting stolen or lost cards to the list of forbidden circulation

With the advantages that card services bring, each bank has built its own strategies to

dominate the market and develop its card service brand The competition in developing

card services of commercial banks nowadays has made customers’ demands more and

more satisfied and made the card service market become more active than ever Therefore,

the improvement of card service quality is very important and necessary for commercial

banks

In the past few years, BIDV — Sogiaodich 1 Branch has implemented a lot of measures

to improve the quality of card services However, the card services of BIDV still have several shortcomings For example, many customers apply for a card issuance but do not

get the cards, causing the cost wastage for the bank The problem of overdue credit card

debt is arising, Besides, the habit of using cash has existed in Vietnamese people’s minds

for a long time Therefore, the aim of Sogiaodich 1 Branch is to improve the quality of

card services in order to expand the card product market and better control risks in card business For this reason, the author selected the topic "Improving the quality of card

1

ACKNOWLEDGEMENT

I would like to express my deep gratitude to the teachers of the Hanoi school of

Business and Management, Viemam National University, especially the teachers who

imparted to me a lot of knowledge and helped me Carry out this essay

I would like to cxpress sinecre gratitude to TS Pham Thi Thanh Hoa has spent a lot

of time, dedicated guidance, only told me during the course of the topic

T would like lo express my sincere thanks Lo the Board of Direclors of Joint, Stock Commercial Bank for Investment and Development of Vietnam Sogiaodich 1 Branch and for the siblings in the professional sections of branches and transaction offices who ccalod favorable conditions Help me in collecting data and information nccdod for thơ study of this thesis

I sincerely thank family, friends and colleagues for encouraging and supporting me

in the process of study and research

Hanoi, date 25 month 5 year 2017

Student

CAO LAN ANH

SERVICES OF COMMERCIAL BANKS

1.1 Overview of card services a1 commercial hanks

LLI Definition and characteristics af card services of commercial bank 5 1.1.3 The role and henefits of card services of commercial banks

113 Main activities of card services at commercial banks

1.2 Quality of card services at commercial banks 10

12.1 Definition of card service quality - ~ 10 1.2.2 The necessity of improving card operabons of commercial banks 10 1.2.3 Evaluation models of card service quality at conmiercial banks 11

4.3, Experience in enhancing the quality of card services at some banks and lessons

LBL Experience 1 7g n ố ố ố ố 1.3.2 Experience of domestic conmercial hanks - ¬- 1.3.3 Rxperionce lessons drawn for BIDY — Sogiandich 1 Branch co 1D

CHAPTER 2: REALITY OF CARD SERVICE QUALITY AT BIDV

2.3, LACHICVEMENES occ ses susatiesssaninieessessiniiesias suessenineiecesnsaeienseasies OO

iandich 1 Branch 50

ACKNOWLEDGEMENT

I would like to express my deep gratitude to the teachers of the Hanoi school of

Business and Management, Viemam National University, especially the teachers who

imparted to me a lot of knowledge and helped me Carry out this essay

I would like to cxpress sinecre gratitude to TS Pham Thi Thanh Hoa has spent a lot

of time, dedicated guidance, only told me during the course of the topic

T would like lo express my sincere thanks Lo the Board of Direclors of Joint, Stock Commercial Bank for Investment and Development of Vietnam Sogiaodich 1 Branch and for the siblings in the professional sections of branches and transaction offices who ccalod favorable conditions Help me in collecting data and information nccdod for thơ study of this thesis

I sincerely thank family, friends and colleagues for encouraging and supporting me

in the process of study and research

Hanoi, date 25 month 5 year 2017

Student

CAO LAN ANH

ABBREVIATION

Meaning of acranyra

BIDV Joint Slock Commercial Bank for Investment and Development of

Vietnam

PIN Personal Identification Number

ABBREVIATION

Meaning of acranyra

BIDV Joint Slock Commercial Bank for Investment and Development of

Vietnam

PIN Personal Identification Number

ACKNOWLEDGEMENT

I would like to express my deep gratitude to the teachers of the Hanoi school of

Business and Management, Viemam National University, especially the teachers who

imparted to me a lot of knowledge and helped me Carry out this essay

I would like to cxpress sinecre gratitude to TS Pham Thi Thanh Hoa has spent a lot

of time, dedicated guidance, only told me during the course of the topic

T would like lo express my sincere thanks Lo the Board of Direclors of Joint, Stock Commercial Bank for Investment and Development of Vietnam Sogiaodich 1 Branch and for the siblings in the professional sections of branches and transaction offices who ccalod favorable conditions Help me in collecting data and information nccdod for thơ study of this thesis

I sincerely thank family, friends and colleagues for encouraging and supporting me

in the process of study and research

Hanoi, date 25 month 5 year 2017

Student

CAO LAN ANH

2.3.2 Limitations and causes - M

CHAPTER 3: SOLUTIONS TO IMPROVE TIE QUALITY OF CARD SERVICES

AT BIDV — SOGIAODICH 1 BRANCH

3.1 Developing orientations of card operations at the bank

3.2.1 investing solutions to improve facilities and demand meeting ability 5

3.2.2 Solutions to improve service deployment outcome - SF 3.2.3 Solutions to complete the service providing process 59 4.2.4 Solutions ta complete the managentent operation - .Ổ)

3.2.5 Solutions to strengthen the brandi tmaae oƒ the branch - - ø2

3.2.6 Salutions to enhance responsibility with society and comunity G3

3.3.4 Reccomendations to the State Bank 63

3.3.2 Recommendations to BIDV Head Office 64

3.4.3 Recommendations to the association of card issuing and payment banks 66

CONCLUSIONS, LIMITATIONS, ANT CONTRIBUTIONS OF THE STUDY

REFERENC

APPENDIX

ABBREVIATION

Meaning of acranyra

BIDV Joint Slock Commercial Bank for Investment and Development of

Vietnam

PIN Personal Identification Number

SERVICES OF COMMERCIAL BANKS

1.1 Overview of card services a1 commercial hanks

LLI Definition and characteristics af card services of commercial bank 5 1.1.3 The role and henefits of card services of commercial banks

113 Main activities of card services at commercial banks

1.2 Quality of card services at commercial banks 10

12.1 Definition of card service quality - ~ 10 1.2.2 The necessity of improving card operabons of commercial banks 10 1.2.3 Evaluation models of card service quality at conmiercial banks 11

4.3, Experience in enhancing the quality of card services at some banks and lessons

LBL Experience 1 7g n ố ố ố ố 1.3.2 Experience of domestic conmercial hanks - ¬- 1.3.3 Rxperionce lessons drawn for BIDY — Sogiandich 1 Branch co 1D

CHAPTER 2: REALITY OF CARD SERVICE QUALITY AT BIDV

2.3, LACHICVEMENES occ ses susatiesssaninieessessiniiesias suessenineiecesnsaeienseasies OO

iandich 1 Branch 50

INTRODUCTION

1 Rationale of the study

Nowadays, the increasing development of science and technology contributes

considerably to the improvement of people’s life quality People are more and more accessible to safer and more sophisticated service products Banking service products are

one of the breakthroughs on the basis of modern science and technology One of those

service products is bank cards Customers using cards can conveniently carry out many

transactions such as payment, transfer, cash withdrawal, internet payment, etc without

having to go to the bank As a result, card products are becoming friendlier, closer, and

being widely accepted by consumers As for the banks, card products also bring them a lot

of intangible benefits such as raising the banks’ position, promoting their brand image, and

attracting customers to the banks These are also business activities bringing revenue to the banks These are the annual fees that cardholders must pay under the card use contract,

cash withdrawal fee (4% for issuing bank and at least 50,000 VND for one transaction);

fees for payment transaction of goods and services by credit card at card accepting units

(2.5% of the value of each transaction, commercial discount (for agent banks that help

conduct payment transaction for issuing banks), some other fees such as credit card penalty

fee, checking fee (fee that cardholders pay for their checking requirements), fee for card re-

issuance (due to theft or loss) and card exchange (as requested by cardholders), fee for

posting stolen or lost cards to the list of forbidden circulation

With the advantages that card services bring, each bank has built its own strategies to

dominate the market and develop its card service brand The competition in developing

card services of commercial banks nowadays has made customers’ demands more and

more satisfied and made the card service market become more active than ever Therefore,

the improvement of card service quality is very important and necessary for commercial

banks

In the past few years, BIDV — Sogiaodich 1 Branch has implemented a lot of measures

to improve the quality of card services However, the card services of BIDV still have several shortcomings For example, many customers apply for a card issuance but do not

get the cards, causing the cost wastage for the bank The problem of overdue credit card

debt is arising, Besides, the habit of using cash has existed in Vietnamese people’s minds

for a long time Therefore, the aim of Sogiaodich 1 Branch is to improve the quality of

card services in order to expand the card product market and better control risks in card business For this reason, the author selected the topic "Improving the quality of card

1

ACKNOWLEDGEMENT

I would like to express my deep gratitude to the teachers of the Hanoi school of

Business and Management, Viemam National University, especially the teachers who

imparted to me a lot of knowledge and helped me Carry out this essay

I would like to cxpress sinecre gratitude to TS Pham Thi Thanh Hoa has spent a lot

of time, dedicated guidance, only told me during the course of the topic

T would like lo express my sincere thanks Lo the Board of Direclors of Joint, Stock Commercial Bank for Investment and Development of Vietnam Sogiaodich 1 Branch and for the siblings in the professional sections of branches and transaction offices who ccalod favorable conditions Help me in collecting data and information nccdod for thơ study of this thesis

I sincerely thank family, friends and colleagues for encouraging and supporting me

in the process of study and research

Hanoi, date 25 month 5 year 2017

Student

CAO LAN ANH

SERVICES OF COMMERCIAL BANKS

1.1 Overview of card services a1 commercial hanks

LLI Definition and characteristics af card services of commercial bank 5 1.1.3 The role and henefits of card services of commercial banks

113 Main activities of card services at commercial banks

1.2 Quality of card services at commercial banks 10

12.1 Definition of card service quality - ~ 10 1.2.2 The necessity of improving card operabons of commercial banks 10 1.2.3 Evaluation models of card service quality at conmiercial banks 11

4.3, Experience in enhancing the quality of card services at some banks and lessons

LBL Experience 1 7g n ố ố ố ố 1.3.2 Experience of domestic conmercial hanks - ¬- 1.3.3 Rxperionce lessons drawn for BIDY — Sogiandich 1 Branch co 1D

CHAPTER 2: REALITY OF CARD SERVICE QUALITY AT BIDV

2.3, LACHICVEMENES occ ses susatiesssaninieessessiniiesias suessenineiecesnsaeienseasies OO

iandich 1 Branch 50

INTRODUCTION

1 Rationale of the study

Nowadays, the increasing development of science and technology contributes

considerably to the improvement of people’s life quality People are more and more accessible to safer and more sophisticated service products Banking service products are

one of the breakthroughs on the basis of modern science and technology One of those

service products is bank cards Customers using cards can conveniently carry out many

transactions such as payment, transfer, cash withdrawal, internet payment, etc without

having to go to the bank As a result, card products are becoming friendlier, closer, and

being widely accepted by consumers As for the banks, card products also bring them a lot

of intangible benefits such as raising the banks’ position, promoting their brand image, and

attracting customers to the banks These are also business activities bringing revenue to the banks These are the annual fees that cardholders must pay under the card use contract,

cash withdrawal fee (4% for issuing bank and at least 50,000 VND for one transaction);

fees for payment transaction of goods and services by credit card at card accepting units

(2.5% of the value of each transaction, commercial discount (for agent banks that help

conduct payment transaction for issuing banks), some other fees such as credit card penalty

fee, checking fee (fee that cardholders pay for their checking requirements), fee for card re-

issuance (due to theft or loss) and card exchange (as requested by cardholders), fee for

posting stolen or lost cards to the list of forbidden circulation

With the advantages that card services bring, each bank has built its own strategies to

dominate the market and develop its card service brand The competition in developing

card services of commercial banks nowadays has made customers’ demands more and

more satisfied and made the card service market become more active than ever Therefore,

the improvement of card service quality is very important and necessary for commercial

banks

In the past few years, BIDV — Sogiaodich 1 Branch has implemented a lot of measures

to improve the quality of card services However, the card services of BIDV still have several shortcomings For example, many customers apply for a card issuance but do not

get the cards, causing the cost wastage for the bank The problem of overdue credit card

debt is arising, Besides, the habit of using cash has existed in Vietnamese people’s minds

for a long time Therefore, the aim of Sogiaodich 1 Branch is to improve the quality of

card services in order to expand the card product market and better control risks in card business For this reason, the author selected the topic "Improving the quality of card

1

INTRODUCTION

1 Rationale of the study

Nowadays, the increasing development of science and technology contributes

considerably to the improvement of people’s life quality People are more and more accessible to safer and more sophisticated service products Banking service products are

one of the breakthroughs on the basis of modern science and technology One of those

service products is bank cards Customers using cards can conveniently carry out many

transactions such as payment, transfer, cash withdrawal, internet payment, etc without

having to go to the bank As a result, card products are becoming friendlier, closer, and

being widely accepted by consumers As for the banks, card products also bring them a lot

of intangible benefits such as raising the banks’ position, promoting their brand image, and

attracting customers to the banks These are also business activities bringing revenue to the banks These are the annual fees that cardholders must pay under the card use contract,

cash withdrawal fee (4% for issuing bank and at least 50,000 VND for one transaction);

fees for payment transaction of goods and services by credit card at card accepting units

(2.5% of the value of each transaction, commercial discount (for agent banks that help

conduct payment transaction for issuing banks), some other fees such as credit card penalty

fee, checking fee (fee that cardholders pay for their checking requirements), fee for card re-

issuance (due to theft or loss) and card exchange (as requested by cardholders), fee for

posting stolen or lost cards to the list of forbidden circulation

With the advantages that card services bring, each bank has built its own strategies to

dominate the market and develop its card service brand The competition in developing

card services of commercial banks nowadays has made customers’ demands more and

more satisfied and made the card service market become more active than ever Therefore,

the improvement of card service quality is very important and necessary for commercial

banks

In the past few years, BIDV — Sogiaodich 1 Branch has implemented a lot of measures

to improve the quality of card services However, the card services of BIDV still have several shortcomings For example, many customers apply for a card issuance but do not

get the cards, causing the cost wastage for the bank The problem of overdue credit card

debt is arising, Besides, the habit of using cash has existed in Vietnamese people’s minds

for a long time Therefore, the aim of Sogiaodich 1 Branch is to improve the quality of

card services in order to expand the card product market and better control risks in card business For this reason, the author selected the topic "Improving the quality of card

1

2.3.2 Limitations and causes - M

CHAPTER 3: SOLUTIONS TO IMPROVE TIE QUALITY OF CARD SERVICES

AT BIDV — SOGIAODICH 1 BRANCH

3.1 Developing orientations of card operations at the bank

3.2.1 investing solutions to improve facilities and demand meeting ability 5

3.2.2 Solutions to improve service deployment outcome - SF 3.2.3 Solutions to complete the service providing process 59 4.2.4 Solutions ta complete the managentent operation - .Ổ)

3.2.5 Solutions to strengthen the brandi tmaae oƒ the branch - - ø2

3.2.6 Salutions to enhance responsibility with society and comunity G3

3.3.4 Reccomendations to the State Bank 63

3.3.2 Recommendations to BIDV Head Office 64

3.4.3 Recommendations to the association of card issuing and payment banks 66

CONCLUSIONS, LIMITATIONS, ANT CONTRIBUTIONS OF THE STUDY

REFERENC

APPENDIX

2.3.2 Limitations and causes - M

CHAPTER 3: SOLUTIONS TO IMPROVE TIE QUALITY OF CARD SERVICES

AT BIDV — SOGIAODICH 1 BRANCH

3.1 Developing orientations of card operations at the bank

3.2.1 investing solutions to improve facilities and demand meeting ability 5

3.2.2 Solutions to improve service deployment outcome - SF 3.2.3 Solutions to complete the service providing process 59 4.2.4 Solutions ta complete the managentent operation - .Ổ)

3.2.5 Solutions to strengthen the brandi tmaae oƒ the branch - - ø2

3.2.6 Salutions to enhance responsibility with society and comunity G3

3.3.4 Reccomendations to the State Bank 63

3.3.2 Recommendations to BIDV Head Office 64

3.4.3 Recommendations to the association of card issuing and payment banks 66

CONCLUSIONS, LIMITATIONS, ANT CONTRIBUTIONS OF THE STUDY

REFERENC

APPENDIX

Table 2.10: Conumon risks in card service business at the branch

Table 2.11 Results of the scale reliability testing

LIST OF TABLES

: Business results of the branch in the stage of 2013 -2015

“rable 2.2:

Table 2.3:

Results of card service business

‘Number of ATM cards at the branch

Revcirnc Ñom card serviecs

Number of international payment cards at the branch

Table 2.12 Results of independent factor analysis,

Table 2.13 Rotated componcnf matrix ofindcpendsnt variablos

Table 2.14 Results of dependent factor analysis

‘Table 2.15 Rotated component matrix of dependent variables

Table 2.16 Multiple rcgrossiơ analsi5

“Table 2.17 Regressian coeffieients coi

Table 2.18 Evaluahion of resaurces

Table 2.19 Rvaluation of outvome

'Table 2.20 Evaluation 0Ÿ pIoeess sec

‘fable 2.21 Evaluation of management

Table 3.22 Evilualion of imags

Table 2.23 Evaluation of social zesponsibility

‘Table 2.24 Evaluation of the quality of card services

ABBREVIATION

Meaning of acranyra

BIDV Joint Slock Commercial Bank for Investment and Development of

Vietnam

PIN Personal Identification Number