Proud of its achievements of the past few years, SeABank has been ceaselessly perfecting its products and services to pursue the policy of sustainable development, aiming to be among the
Trang 1I INTRODUCTION
1 About SeABank
Head office: 25 Tran Hung Dao Str., Hoan Kiem Dist., Hanoi, Vietnam
Tel: (+844) 3944 8688 – Fax (+844) 3944 8689
E-mail: seabank@seabank.com.vn
Website: www.seabank.com.vn
Founded in 1994, the Southeast Asia Commercial Joint Stock Bank - SeABank is one the first Vietnamese commercial joint stock banks Proud of its achievements of the past few years, SeABank has been ceaselessly perfecting its products and services to pursue the policy of sustainable development, aiming to be among the leading commercial joint stock banks in Vietnam
Over 18 years of development, the present capital SeABank is 5,335 billion and total assets are nearly 102 trillion, the operations network includes 155 outlets in all 3 regions of the country with more than 2100 staff who are trained, and have the system and depth
According to clear development strategy, SeABank chooses to cooperate with the leading shareholder in the domestic and international The most typical foreign strategic shareholders
is leading financial and banking group in Europe and in the world - Société Générale (France) that has a thickness of 150 years of experience, and the domestic strategic shareholders are VMS Mobifone, Vietnam Gas Corporation (Petro Gas)
With internal resources and strong foundation, SeABank always aim to become a typical retail bank in Vietnam with the outstanding value of brand reputation and quality of products and services The whole point of banking transactions across the country are under construction -Outdoor Furniture by international standards, ensuring the technical, aesthetic and brand identity, which has contributed to creating not transaction time of a professional typical retail bank, offering convenience to customers when transactions
2 Development Strategy
Constructing and developing SeABank to become a typical retail bank in Vietnam is SeABank’s development strategy core of the future In the development strategy of retail
Trang 2banking, SeABank will focus specifically on individual customers (beginning with the mass market and middle market, then the market will advance to higher levels), but still focus on developing small and medium enterprises and some large enterprises The products and services are designed to suit diverse needs and financial capacity of each subject and different customer segments
3 Mission
SeABank strive to become typical retail bank in Vietnam with the outstanding value of brand reputation and quality of products and services, property SeABank committed to bringing customers a set of products - professional services that meet the needs of individual customers, optimizing value for customers, shareholders benefit and the sustainable development of the Group, contributing to the overall development of the community and society
4 Vision
Thriving on system structure of a retail bank, gradually establishing a model of specialized investment bank and full development of the model of a banking group - diversified financial, with outstanding value in quality products and services and brand reputation
5 Motto
A comprehensive, safe, efficient and sustainable develop
II LAUNCHES THE RETAIL BANKING MODEL IN VIETNAM
In recent years, the commercial banks in Vietnam have focused more and more on the retail market Until 2014, Vietnamese retail banking market is entering another boom with the participation of over 100 credit institutions, including 48 commercial banks and 53 branches of foreign banks
We can see highlights from 2013, the joint-stock commercial banks such as Vietcombank, BIDV or VietinBank are promoting the most prominent retailers of which, BIDV is with a very professional retail system As a customer of BIDV and many others, we found themselves that BIDV also deploy advertising much stronger than the other banks
How to survive in an environment of increasingly tough competition? Some banks have developed thanks to the support of the foreign banks like Techcombank partnership with
Trang 3HSBC, Sacombank in cooperation with ANZ or SeABank typically with acquisitions from selling 20 % stake to Societe Generale Thanks to the advice and assistance of the foreign banks, SeABank retail products were quickly put on the market and a direct blow to the final consumers who are individuals or small and medium businesses To 2014, SeABank brand has become quite strong due to the investment in developing a professional brand The study of professional finance in the world has shown that the development of retail banking is an inevitable trend for the banking industry Vietnam’s banking system is no exception Accordingly, a successful retail banks need to assert an intimate relationship between story and brand differentiation It is not only the difference in quality of service, product innovation, but also in how brands to create products and services unlike other banks Even changing the brand identity, SeABank has changed from blue to red - the favored color in Southeast Asia in general and Vietnam in particular
Thus, looking at the overall picture, with more than 100 credit institutions participating retail market in which 48 commercial banks and more than 53 foreign credit institutions in (a large number), until now, whether retail banks still attractive to other banks as market participants begin?
To test this, we applied the 05 competitive pressure of Michael Porter to assess whether retail banks have also taken an interest
About 05 competing pressures models of Michael Porter:
According to Michael Porter, the intensity of market competition in the domestic industry affected any of the following five competitive forces:
Trang 41 The power supply shown in the following characteristics:
- Concentration of suppliers,
- The importance of the number of products to providers,
- The difference of vendors,
- Impact of inputs on cost or product differentiation,
- Switching costs of firms in the sector,
- The existence of alternative suppliers,
- The risk of strengthening the unity of the supplier,
- Cost of supply compared to the total income of the sector
2 Alternative risk reflected in:
- The conversion cost in using the product,
- Trends in the use of alternative clients,
- The correlation between price and quality of the replacement item
3 Barriers to entry show in:
- The absolute cost advantage,
- An understanding of the market cycle fluctuations,
- Access to the inputs,
- Government policy,
- Economies of scale,
- The capital requirements,
- Specificity of trademarks,
- The cost of business transformation,
- Improved access to distribution channels,
- The possibility of retaliation,
- The proprietary products
4 Customers express power in:
- The bargaining position,
- The number of buyers,
Trang 5- Information that buyers have,
- Specificity of trademarks,
- Sensitivity to price,
- The product differentiation,
- Concentration of clients in the industry,
- The level of availability of substitute goods,
- Engines of customers
5 Competition shown at:
- The barriers if they want to "escape" from the industry,
- The level of industry concentration,
- Fixed costs/ added value,
- Status of the industry,
- Status of excess capacity,
- Difference between products,
- The switching costs,
- Specificity of trademarks,
- Diversity of competitors,
- Screening status in the industry
III ANALYSIS SWOT AND PEST OF SEABANK WHEN JOINING THE RETAIL BANKING MARKET
1 PEST ANALYSIS
Political
- In the current regulatory and future environment: Currently, the State Bank is leading banks
to focus and write-offs while promoting measures to promote retail and medium-sized businesses This is an opportunity for the retail banking market as SeABank expansion and business growth
- Regarding the management and workflows: This moment is the moment of the fierce competition of retail banking, after 05 years of building retail bank, SeABank has provided
Trang 6systems and products stabilize the business and scientific advice by SG - France 2014 is an ideal time to rise and break
- The government's policy: Currently, state banks reduce interest rates to as low ceilings, which create conditions for commercial banks reduced lending rates to boost credit This is a good condition for a bank stability fund as SeABank Not too pressured by a shortage of funds, SeABank will have the opportunity to pass the other competitors, the bank worry about having
to find ways to raise capital and savings rates, which greatly affect rates lending due to pressure on margins
Economic
- The economic situation in the country and the world: Currently, the recession is slowly being pushed back; the countries begin to show recession recovery with positive growth Vietnam is one of them Indicators of real estate and securities are also showing the recovery with positive growth but are not high This shows that in 2014 the economy will have certain advantages for the bank is a pivotal year for the corporate recovery business
- The general and tax issues specific to the product / service: In order to overcome difficulties and support for business, in 2014, a number of policies and reduction of the lease is applied It
is expected that 2013 will be reduced by about 5,000 billion based on policies such as: 06 -month extension of the deadline for payment of corporate tax, corporate income tax imposed
20 % (instead of 25 %) for small and medium businesses Reduce VAT to 50% from 06/30/2014 to 07/01/2013 and end on the business activities of social housing, along with the proposed reduced registration fee for passenger cars under 10 seats sitting under the direction
of first-time car registration fee rate was 10 % overall, the local adjustment increases shall not exceed 50 % of the general regulations; Registration for 2nd car afterwards the rate not exceeding 2 % and uniform implementation across the country These policies will be beneficial for the key products of the bank’s loans to buy houses, buy cars, especially retail banking products
- On the market cycle: After a period of crisis, 2014 will be the year that predicts Real Estate Securities will have the same chance of recovery The retail banking as SeABank also has policies to promote real estate loans and securities in order to prepare for this cycle
Trang 7- The distribution trend: At present, more and more investors and companies are in associated with banking distribution products Distribution of the bank business and vice versa, based on the development of lending products businesses (and home loan products, automotive, and consumer lending products shopping installments) is very lively place This greatly affects the customer, the end consumer The budget deficits for spending will be offset from the bank This is a new trend when people can own these expensive products without the use of accumulated money This is also an opportunity for banks to boost retail products such as credit cards, consumer loans
- Regarding interest rates, exchange rates and monetary issues: state rate remained stable in recent years, inflation is under control very well thanks to the fiscal policy of the state Interest rates as mentioned above are ideal for the people and companies spending and business activity
Sociocultural
- Regarding trend of lifestyle change: People are slowly changing perceptions about the purchase and consumption Instead of accumulating money and wait until enough people willing to Vietnam current bank loans to carry out dream of owning This is common in developing countries and will become the future trend This is very beneficial especially for banks and banks as SeABank oriented retail
- Attitudes and opinions of customers: customers now have identified changes in banking Before approaching the bank is very difficult and banks in "aired on" than customers but now everything has changed Customers become true god and they look to banks offer better service and style As one of the banks with the best service in Vietnam, SeABank will certainly
be well positioned to compete with other banks
- On the issue of media: More and more banks are more concerned about issues of communication and brand and company image SeABank communication budget is not big, only 05 billion per year and much lower than many other banks It also shows the trend for fair competition between the banks and the banks becoming more like company
Technological
Trang 8- Independent or dependent technology: Currently banks are equipping their technology and technology-independent There is no more binding regulations from state banks The level of technological perfection allows banks increased competitiveness with rivals thanks to the completion of high-tech products In 2012, SeABank was named No 01 bank in Vietnam in information technology, this shows the competitiveness of high-tech products is very large SeABank
- Complete technology also helps retail banks as SeABank finishing production capacity when the current life increasingly demanding high technology platform
The PEST analysis model showed favorable conditions for retail banking in general and SeABank in particular 2014 is the year to break the bank and SeABank retailers will have the opportunity to develop the platform has been built in the past 05 years
2 SWOT ANALYSIS
a Strength
- Big business and stability capital
- Having the support of capital, banking experience from the world's leading banks - SG
- Young potential and thoroughly trained staff
- Have a solid technology platform for product development
- There are very good quality services
b Weakness
- SeABank brand is not really strong; brand strength is not as great as the other banks like BIDV, Vietcombank and Vietinbank or other big banks like ACB or Techcombank
- Bank size is small with only over 150 outlets across the country Compared with 1000 points
of Vietcombank and BIDV transaction, it is a very small number
c Opportunities
As the analysis in PEST model, SeABank opportunity is huge in the moment The market conditions are favorable for the smaller banks may fair competition with the big banks As small banks as those with strong technology and service quality with all the deployment process, SeABank will have good conditions and strength to compete in the market
d Threaten
Trang 9SeABank will face threatens from:
- The economic downturn remains a strong influence on the economy Worries about bad debt and the cumulative amount of people will affect the bank's progress But here is the challenge for the whole banking sector
- The threaten comes from the development of large banks now that they are starting to see a change in approach to the market
- The threaten comes from the rival par and the strong rise of the smaller banks
- Finally, the internal threaten from SeABank, how to retain good employees, whether the bank has invested the largest expenses for communications and product development to further break
Opportunity exists Going along with it is the challenge SeABank need to rely on more and raise the level of their strengths and limitations in order to gradually overcome these weaknesses in order to increase competitiveness and breakthroughs in the coming years
IV ANALYSIS THE ATTRACTION OF RETAIL BANKING MARKET IN VIETNAM TODAY
1 Firstly, the power of suppliers.
Supplier of input here represents the industry With the banking industry, most providers are interested in people who deposit money The nature of the banking business is the unit of currency, the main source of income for banks is still related services such as lending money, money exchange and special in receiving deposits Here is as provider of banking customers
On the purely business as a company, the depositors are in the position of suppliers
Vietnamese are very interested in the issue and accumulated savings According to a global survey report on consumer confidence by Nielsen published - new market research firm, Vietnam is the most economical country in the ASEAN region Specifically, 74 % of Vietnamese surveyed said that they would save money after they have covered essential living expenses in life Indonesia is ranked second ( 72 % ), followed by the Philippines ( 68 % ), Thailand ( 66 % ), Singapore ( 64 % ) and Malaysia ( 63 % ) These countries are in the top 10 saving countries in the world
Trang 100% of respondents in Vietnam said that they change their shopping habits to save money surplus In particular, spending on new clothes and entertainment items outside the home is the first choice cuts and plans that are gas and electric Savings is still the first choice for consumers who want to protect their family budgets With the savings rate, people can talk to the bank of inputs is very large because the ratio of the money remaining after expenses of the people of Vietnam at about 20%
Summary table of income - average cost in 2012 (thousand dong)
Expense Income The remain Percentage
By urban and rural
By region
Midlands and northern
North Central and Central
Source: According to the official data of General Statistics Office
Thus can be seen with the 90% of the population participated savings income, the bank's input
is still very large In fact over the years, savings, gold and securities remains one of the main channels of savings which save is the majority Also, according to the analysts, the economic situation as the current unrest, Real Estate will not be liquidated, gold and high-risk securities; savings will still be the first channel investment
Meanwhile, in order to stimulate economic growth, the central bank cut interest rates to very low ceiling (6 % / 01 years) This is a record low interest rate ceiling This makes the “status”
of the people becomes weaker compared to the previous year Without savings, people also do not know where to invest in profitable during this time It can be seen in the recent past, when waves cut rates even more pervasive, many customers are wondering, laments for their deposit Not absorbed in looking at the locations where the highest interest rate to send Excess