Bad training skill of debt collection center and verification department at VP bank

Based on the symptom is high NPL rate in retail segment, after verifying potential problems, the main problem of bad training skill in debt recovery and verification is revealed with two

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

Phan Ngoc Thuy Duong

BAD TRAINING SKILL OF DEBT

COLLECTION CENTER AND

VERIFICATION DEPARTMENT AT

VP BANK

MASTER OF BUSINESS (HONOURS)

Ho Chi Minh City – Year 2019

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

Phan Ngoc Thuy Duong

BAD TRAINING SKILL OF DEBT

COLLECTION CENTER AND

VERIFICATION DEPARTMENT AT

VP BANK

MASTER OF BUSINESS (HONOURS)

SUPERVISOR: Dr Doan Anh Tuan

Ho Chi Minh City – Year 2019

TABLE OF CONTENTS

Executive summary 3

1 Company overview 4

1.1 Viet Nam Prosperity Joint Stock Commercial Bank (VP Bank) 4

1.2 Organizational chart 4

1.3 Risk Management Department 5

2 Symptoms: High bad debt (NPL) ratio in Retail segment 7

3 Problem indentification 9

3.1 Potential problem 9

3.1.1 Problem finding process 10

3.1.2 Poor credit risk management policy 10

3.1.3 Bad training skill in debt recovery and verification 11

3.2 Problem validation 13

3.3 The importance of main problem 14

4 Cause justification 15

4.1 Possible causes 15

4.1.1 Lack of training document 15

4.1.2 No department specializing in training 15

4.1.3 Uneven knowledge of instructors 16

4.1.4 Lack of cost for training 16

4.2 Validating causes 16

5 Alternative solution and action plan 18

5.1 Solution 1: Propose to establish training team for Verification and Collection department 19

5.2 Solution 2: Build internal training program 25 5.3 Solution 3: Hire external partners to train staffs of Collection and Verification department 28

6 Supporting information 34 REFERENCES 41

LIST OF FIGURES

Figure 1: VP Bank’s organization chart

Figure 2: Risk Management Department’s organization chart

Figure 3: NPL ratio of banks at the end of the third quarter of 2018

Figure 4: % New NPL by month from 2017 to 2018

Figure 5: Accumulated New NPL by product in 2018

LIST OF DIAGRAMS

Diagram 1: Initial Cause-effect map of Risk Management Department

Diagram 2: Updated Cause-effect map of Risk Management Department

Diagram 3: Final Cause-effect map of Risk Management Department

LIST OF TABLES

Table 1: Reasons for delinquency of NPLs

LIST OF ABBREVIATIONS

VPB Viet Nam Prosperity Joint Stock Commercial Bank (VP Bank)

Executive summary

Bad debt is considered a big problem for the banking system in Vietnam in particular and the economy in general In recent years, the bad debt ratio in Vietnam has been constantly rising This is a consequence of many internal and external causes But in it, the outstanding problem is the limited risk management of commercial banks but directly Recognizing that, the state bank as well as commercial banks have focused on completing the management of bad debts This is the basis for controlling and minimizing losses in credit activities, ensuring banking operation efficiency and promoting the country's economic development

Vietnam Prosperity Joint Stock Commercial Bank is one of the joint stock commercial banks established early and developing steadily in Vietnam VP Bank is constantly expanding credit activities and many other products and services In parallel with this development orientation, risks arising from credit activities increased significantly, reflected in the annual bad debt ratio of the bank Based on the symptom is high NPL rate in retail segment, after verifying potential problems, the main problem of bad training skill in debt recovery and verification is revealed with two main causes are pointed out which are

Since then, by using internal reports and conducting in depth interview with some staffs

to understand the main problem, the thesis would like to propose some solutions to improve the management of bad debts in credit activities of VP Bank

1 Company overview

1.1 Viet Nam Prosperity Joint Stock Commercial Bank (VP Bank)

Vietnam Prosperity Joint Stock Commercial Bank (VP Bank) was established on August 12, 1993 After nearly 25 years of operation, VP Bank has developed its network to

219 transaction points with a staff of nearly 24,000 employees By the end of 2017, VP Bank's charter capital has increased to VND 15,706 billion

VP Bank is gradually asserting the reputation of a dynamic bank with stable and responsible financial capacity to the community In 2017, VP Bank closed its 5-year journey (2012-2017) with great achievements in scale and profitability, making VP Bank one of the leading commercial joint stock banks in Vietnam

Especially, 2017 is a historic milestone for the bank when nearly 1.5 billion shares were officially listed on HOSE, attracting great attention of domestic and international investors With constant efforts, VP Bank's brand has become more and more strong and confirmed through many prestigious awards Particularly in 2017, VP Bank received 20 domestic and international awards continuously, showing the recognition of prestigious organizations for VP Bank's impressive growth in brand value

VP Bank's new brand with the motto "Act for dreams" is built from the following elements: Professional, Dedicated, Different, and Simple Towards a long-term vision, VP Bank is determined to promote the image of a bank that always strives to serve customers with the friendly attitude and the fastest speed

VP Bank is ranked by Brand Finance, the world's leading brand valuation consultancy,

as one of the four banks with the highest brand value and one of the 22 most valuable brands

in Vietnam in 2017

1.2 Organizational chart

Source: VP Bank’s website (www.vpbank.com.vn) Figure 1: VP Bank’s organization chart

1.3 Risk Management Department

Figure 2: Risk Management Department’s organization chart

As in organization structure of Risk Management Department in figure 2, the

department divided into many teams In this thesis’ scope there is three teams in retail

segment, namely: Debt Collection Center (include Debt Collection Strategy and Retail Debt Collection), Retail Risk and Verification Department should be focused on Each team has specific responsibility:

Debt Collection Strategy

- Develop management and debt recovery strategies;

- Build and manage automatic debt reminder system;

- Set up training programs to train debt recovery officers;

- Control the quality of debt recovery through the reporting system;

- Make plans for debt recovery in each period based on the strategy of the bank's

leadership

Retail Debt Collection

Responsible for recovering loans from individual customers, including:

- Remind pre-due debts and overdue debts by SMS message system based on the list of loans due in the month;

- Call overdue customer to collect debt according to the available scenario;

- Field visit to meet customers directly;

- List out loans with signs of fraud then sent to the in charge department for further actions;

- List out customers having difficulties in repaying debts to implement financial

solutions

Verification Department

- Analyze and assess customer's risk level when making a loan decision;

- Assessing risks with disbursed loans: determining the financial situation of loan applicants

Retail risk

- Develop and implement a credit risk management framework

- Develop and implement a credit risk strategy based on VPB's credit risk appetite

- Give opinions on credit risk aspects for the deployment of new credit products and credit activities in the new market

- Prepare annual debt collection plan

- Evaluate debt recovery strategies that are being applied

- Evaluate the quality of debt collection activities compared to the plan

- Evaluating policy documents related to debt recovery activities

- Review reports on debt recovery activities and debt recovery quality

2 Symptoms: High bad debt (NPL) ratio in Retail segment

Bad debt is the money that the bank lends to borrowers but when it is due, it cannot be claimed due to subjective factors from customers such as customers, businesses, credit institutions loss, bankruptcy leads to the inability to pay the bank's borrowed debt when it is due Bad debt has been and will continue to negatively impact the flow of capital into the economy The higher the NPL ratio, the greater the risk and loss of capital flow of commercial banks This is considered to be the main reason to curb and limit the flow of credit in the economy

According to the Decision No 493/2005 of the Governor of the State Bank of Vietnam dated April 22, 2005 on debt classification, appropriation and use of provisions to deal with credit risk in banking activities of credit institutions bad debt is defined as follows:

"Bad debts are those classified into group 3 (Non-standard debts), group 4 (Doubtful debts) and group 5 (Loans capable of losing capital)

Debt groups are classified under Article 6 and Article 7 in this Decision Include:

- Classification of debts under Article 6 is mainly based on the overdue period of debts (Group 3: overdue period from 90-180 days, Group 4: overdue from 181 -

360 days, Group 5: overdue is over 360 days)

- Classification of debts under Article 7 is mainly based on the debt repayment capability of customers (Group 3: Debts which are assessed by the CI as capable

of partially losing principal and interest, Group 4: Debts assessed by the CI as a high possibility of loss, Group 5: Debts which are evaluated by the CI that no longer able to recover, accept loss of capital)

Thus, bad debt in the opinion of the State Bank of Vietnam is also determined based on two factors: (i): overdue more than 90 days or (ii): worrying ability to repay debts ” However, the approach of Vietnamese commercial banks according to which factors depends on the ability and conditions to conduct debt classification under Article 6 or Article 7 of Decision 493/2005

When bad debt increasing in the loan portfolio of the bank will cause serious effects for the operation process of bank's business (1) A higher ratio of bad debt shows the limitation of financial institutions and influence to fund management Bad debt also effects significantly to the functions of the bank goods through weakness bank assets and distress decrease in income when the irrecoverable debt widening

Source: https://vietstock.vn Figure 3: NPL ratio of banks at the end of the third quarter of 2018

According to VP Bank's consolidated financial statements, consolidated bad debt has increased sharply from 3.4% at the end of 2017 to 4.7% at the end of the third quarter of 2018

Figure 4: Ratio of new NPL by month from 2017 to 2018

The above table shows the percentage of new non-performing loan in Retail segment from January to December between year 2017 and 2018 In retail segment, it can be seen from the data that, most of the months, new NPL rate of 2018 is higher than 2017 and also higher than the target for 2018

Figure 5: Accumulated New NPL by product in 2018 When analyzing the NPL ratio by product of the individual customer segment, it can be seen that this rate is highly concentrated in products without collateral As a result , it illustrates that high NPL rate in retail segment, especially in unsecured product (UPL and credit card) should be seen as a symptom that manager need to focus on

3 Problem indentification

3.1 Potential problem

Diagram 1: Initial Cause-effect map of Risk Management Department

3.1.1 Problem finding process

In order to identify main problem of the department, following steps were executed:

- Take in-depth interview with some staffs in Risk Management Department to understand the symptoms and potential problems

- Review theories related to the symptoms and potential problems

- Analysis financial data

By following above steps, some potential problems are listed as below:

3.1.2 Poor credit risk management policy

Financial institutions face many types of risks One of the most common risks is credit risk, which involves a change in the credit quality of the partner, thereby affecting the profitability of the financial institution that due debt cannot be paid by customers Preventing the restriction of credit risk is a difficult and complicated issue because the credit risk is indispensable, always associated with credit activities, and very complex Credit risk is often difficult to control and leads to losses in capital and income of the bank

There are many different definitions of credit risk, but these views all show the same nature: credit risk is the possibility of economic losses that commercial banks have to suffer because the loans that customer borrowed is overdue or customer cannot repay the loan (both principal and interest) that lead to financial losses such as reducing net income and market value of capital According to the definition of the Basel Committee on International Affairs:

"Credit risk is a risk or loss caused by a borrower or partner.” Or "Credit risk is a potential loss for a debt of CI and a foreigner bank branch because customers do not perform or are not able

to perform part or all of its obligations under commitments ”(Clause 1, Article 3 Circular No 02/2013 / TT-NHNN)

In the bank's business operations, credit risk is systematic system, so once the credit risk occurs will cause damage not only for the bank itself in terms of profits, assets, reputation but also the affection to the whole banking system and the economy R Boffey, G.N Robson (2) stated that credit risk cause big impact on bank’s performance and influent directly on bank failure due to losses from bad loans

Credit risk management is the best way that all credit institutions need to perform so as not to lose investment capital Credit risk management is understood as the process of identifying, analyzing risk factors, measuring risk, and then choosing to implement measures and manage credit activities in order to limit and eliminate risks in the process of granting credit A good credit risk management will bring benefits to banks such as: (i) Reduce costs,

improve income, preserve capital for commercial banks; (ii) Create trust for depositors and investors; (iii) Creating a premise to expand the market and increase prestige, position, image and market share for banks According to Viktar Fedaseyeu and Robert Hunt (3) the implementation of robust and effective credit risk management are very important to enhance the commercial banks’ performance

As sharing from Ms.Nguyen Hong Ngoc – Retail Risk team leader, credit policy is a system of measures related to the expansion or restriction of credit to achieve the planned objectives and limit risks, ensuring safety in banking business Credit policy helps banks target the loan portfolio effectively, and instructs credit officers on necessary procedures, work steps

to perform lending activities The current limitation of credit risk management policy at retail segment of VP Bank is partly due to excessive credit expansion, which means poorly selected customers, the ability to monitor the use of weak loans More importantly, the compliance with the credit process is loose and the weakness of staff is also likely to lead to increasing of credit risk and then cause bad impact to NPL rate

3.1.3 Bad training skill in debt recovery and verification

First of all, it must be seen that, as a financial intermediary, the bank performs the role

of mobilizing capital from depositors, making loans, recovering debts and repaying to depositors (principle, interest) This is a regular, continuous and indispensable process of commercial banks, any interruption in the above process can affect the role of "financial intermediaries" of commercial banks Accordingly, if there is no capital mobilization, there will be no capital to lend; otherwise, it is difficult to recover the debt, it will increase the risk provision, increase bank costs and increase lending interest rate

How to improve the efficiency of debt recovery at VP Bank and prevent bad debt has always been a headache for managers as well as management agencies Debt recovery without timely management and recovery measures will lead to prolonged appropriation of capital, directly affecting business turnover and payment situation as well as profitability of the business Like all banks, VP Bank always determines debt handling and recovery is a key task along with business activities, credit granting When customers encounter difficulties, they are unable to repay their debts, if due to objective, temporary and remedy causes, the Bank may coordinate with customers to find solutions to solve and gradually recover debt In case the customer violates a serious credit contract (using capital for wrong purposes ) or cannot take remedial measures, recover the business, the Bank will exchange and discuss clearly with the customer to clearly defining the nature and situation and thereby persuading customers to take measures to repay debts as soon as possible, avoiding additional losses Ms Le Viet Thu –

Collection Manager – shared that due to the high workload at her team with target for one debt agent (collector) is contact at least 200 customers per day and the insufficient headcount hence many new employees have to work (collect debt from customer by call or field visit) after 2 or

3 days being instructed by mentors Also, currently her department has no team specializing in training for new staffs and coaching for current staffs As Ms Vo Thi Sa Mi – Senior Debt Collection Officer – besides her daily tasks, sometimes she has to train for some new staffs by attach them to guide them how to use collection system, how to call customer for their payment…, she also shared that some of her colleagues have to guide for new staffs like her,

it really impacts to their own performance

Also, credit verification is an important step to help banks identify and screen good customers to ensure credit quality Credit verification is the use of analytical tools and techniques to evaluate customers according to credit criteria to provide objective and complete assessments of customers, as a basis for making decisions in terms of granting credit The process of credit verificaiton of commercial banking system is the instruction (in the form of documents) of steps taken from the consideration and collection of necessary information until the final conclusion about the possibility debt recovery ability when lending The entire credit verification process can be done through the following steps: examining customer loan records; collect additional necessary information; appraise debt recovery ability through information obtained; estimating and controlling credit risks; final conclusions about debt recovery ability

Ms Tran Thi Lien Oanh – Verification team leader – shared that her department conducted a survey in end of 2018 on nearly 2000 customers having NPLs and the result from this survey showed that the ratio of customer having income/business was fake is highest among other reasons for delinquency that caused NPLs She also insisted that this result come from the weakness in skill of verification staffs

No Reasons for delinquency Ratio

Source: Verification Department – VP Bank

It can be seen that trainings are considerred as leverage, a important key to further improving the quality and efficiency of work before new mission requirements The training contents are equipped with very important background knowledge about work as well as skills training, this is also an opportunity for employees to meet and exchange experiences, solve together problems at work The training process aims to help employees perform well the functions and tasks in their current job by providing them with the knowledge and skills necessary to improve their professional skills and qualifications which are factors that employees need to supplement Training is also a constant effort to increase working capacity and improve the operational capacity of individual individuals in particular and the operational capacity of the entire organization It is a key work in the strategy of human resource development and closely related to other remaining factors such as career planning, organizational development, assessment of individual and organization's activities

On the other hand, bad training skill in debt collection and verification could lead to 1) Weak skills in credit ratings and therefore will be able to decide on loans that are not profitable

or even make the bank lose its capital; 2) there is no ability of appraisal of collateral for the right loan; 3) difficult to control and monitor the purpose of using customers' capital after granting credit to customers According to Ms Anh, she had a lot of difficulties when started

to work without training and her performance was very bad in several months So she think

training is very important for her job As Ms Mi said with strong skills, collectors can resolve

overdue loans in early stages, prevent accounts move to higher buckets that cause bad debt, then achieve their target and also save the bank from loss of bad loans Besides, Mr Dong said that he thinks training in very first steps make staffs more confident in work, but without

training, like Ms Anh, he had bad performance and also met many difficulties in work

To sum up, based on in-depth interviews, bad training skill in debt recovery and verification of Risk Management Department can be considered as main problem that impacted

to NPL rate of retail segment at this time

3.3 The importance of main problem

“Training is generally considered as tool which is used to enhance individual skills, knowledge and abilities of a resource, and to enable that person to understand certain aspects

of business” (4) Training will help employees to release frustration and anxiety caused by heavy workload and help them to enhance the productivity in work (5) According to Bolotbek Orokov, Dan Durning and Sergei Pushkarev (6) “training was considered to be job-focused, limited to the technical skills and abilities needed by public employees to perform specific tasks”, also stated that isolated experience may not contribute to the success of organization Therefore, if Collection and Verification department still assign experienced staffs to train for new one without specializing training team, it will continue negatively impact to performance’s departments, especially in NPL rate then affect to the VP Bank’s profit Besides, training is one of popular methods to enhance productivity and performance of employees (7) and also,

as Wambugu Martha Karungari (4) with the right kind of operatives, well trained and knowledgeable, more debt is recovered In fact, employees being trained being able to build new skills and improve work efficiency According to Ms Oanh if verification staffs is trained professionally, they will be able to identify loans with signs of fraud or high risk then reject these applications then avoid the difficulty of debt recovery in the future, even prevent the loan from becoming bad debt which causing loss to the bank Obviously, continuous internal training will lead to a cohesive and loyal staff and can elevate themselves in more challenging roles Hence, finding proper solutions for the problem of bad training skill in debt recovery and

verification is able to improve NPL rate in Risk Management Department is necessary as of now

4 Cause justification

4.1 Possible causes

With previous analysis in addition with literature review, there are four potential causes

of the main problem is updated in Cause-effect map of Risk Management Department at Diagram 2 as below:

Diagram 2: Updated Cause-effect map of Risk Management Department

4.1.1 Lack of training document

According to the observation and confirmation of managers and staffs at Collection and Verification department, both of these departments have not yet had any documents to train new employees as well as references for current employees In fact, training materials are one

of the factors that play an important role in the success of the training, providing information for the staff's skills and serving the management Therefore, it is necessary for these two departments to have materials for training The lacking of training materials is the cause of bad training skill for debt recovery staffs and loan appraisal staffs

4.1.2 No department specializing in training

According to the staff and managers at the Collection and Verification department, these two departments currently do not have a team specializing in skill training for employees They often instruct experienced staff to guide new employees, this is known as on-job training

On job training is taken place at actual working place of employee while they perform actual job (4) and this is considered as the tool to enhance satisfaction of staff (8) However, with

different knowledge and experience of trainers, also the constraint of training time , this method

is ineffective at these departments

4.1.3 Uneven knowledge of instructors

As Dev G Raheja (9), people play an important role in organization system It can be seen that human factor is always the leading determinant, directly controlling the training process in the business Human factor not only refers to the trainers and trainees but also the management staffs Professional qualifications and professional capacity of of trainers are key success factors in training But if the trainers is unprofessional or have weak skill or different experience… will have a negative impact on the quality of training In fact, effectiveness of training depends upon the knowledge and skill of the trainers, but currently Collection and Verification department is assigning senior staffs who have different skills, knowledge and performance to train new staffs, as the result, it will cause the conveying knowledge in a heterogeneous way, then impact directly to performance of staffs Besides, this kind of training

is not systematic, the instructors have no expertise in training so limited in the instruction process, making the training results limited

4.1.4 Lack of cost for training

According to Arshad Ahmad et all (10), the importance of training and cost of training are obvious Many companies want to reduce costs which is considered as losses, to use the budget for business However, in the current economic integration period, cutting down the cost of training solutions incorrectly will have no small consequences (11) like employees do not meet the skills when working causing the development of the business to go down, the quality decreases, the fewer training, the more turnover rate and the work is interrupted continuously causing stagnation in business activities, spending cost to hire highly qualified employees (long-term experience) with a high salary to grow their business VP Bank is not an exception, in some departments, the investment costs in training employees has not been taken seriously which leads to a situation where there is no training team like in the case of Debt Collection Center and Verification Department

4.2 Validating causes

Based on above analysis and in-depth interviews, many employees in Risk Management Department have emphasized the importance of having team specializing in training in Collection and Verification department and the knowledge of instructors More specifically, Ms Ngoc shared that in one of her business trip, she found that there is no training

to train for new staffs and also coaching current staffs in Collection and Verification department Furthermore, Ms Mi and Ms Oanh clarified that instead of having training team,

their department assigned senior staffs to spend 2-3 days to attach new staffs to train them and guide them basic knowledge or skill to work with customer and they also do not have quality control team to evaluate staff’s performance to provide prompt feedback or coaching Ms Anh who have one year experience at Collection Center of VP Bank also told that when she started

to work, her manager assigned one senior staff to be her mentor to guide her how to use system and support her in handling customer’s enquiries Moreover, Mr Dong believed that training

in very first steps make staffs more confident in work

In fact, each employees have a different background of knowledge and skills, if not equipped with a systematic knowledge when starting work, they can easily be conveyed some non-advanced experience skill manipulations Furthermore, due to the changing of technology, volatility of the job market but the old job skills are no longer appropriate, so companies have to re-train staff continuously with new knowledge to take on work For those employees who have been fulfilling their duties well, equipping them with knowledge and experience so that they have the opportunity to develop higher positions in the future Accordingly, professional training not only helps employees increase their work efficiency but also positively impact the company's performance A survey found that 40% of employees quit their jobs in the first year if they received poor vocational training High turnover rate is very expensive for the business in many ways - not just the cost of hiring new people, but also the lost knowledge, wasting time, etc Providing good training to employees may retain them to the company Therefore, the establishment of a team specializing in training or hiring external partner to train staffs is a necessary requirement for Debt Collection Center and Verification Department

Professional qualifications of trainers are very important But if that person is unprofessional, their skill or knowledge is not strong enough will cause bad impact on the quality of training The quality of trainers with sufficient qualifications and ability is a key factor affecting the quality of training

Based on the summarized information from the interviews and the above validations,

no department specializing in training and uneven knowledge of instructors or trainers can be identified as main causes of bad training skill in the department In short, according to all previous analysis, the final cause-effect map will be shown as below

Diagram 3: Final Cause-effect map of Risk Management Department

5 Alternative solution and action plan

Recently, VP Bank have considered credit risk management for enterprises and there are many measures to limit credit risks, but the results are not as expected Finding positive solutions to enhance the credit risk management system for the bank is always urgent and important in long-term After analyzing the potential cause of the main problem of Collection and Verification of retail segment of VP Bank “Bad training skill in debt recovery and verification”, it is obviously that these departments need to find proper solutions and take appropriate action as soon as possible to solve this problem

In fact, many staffs in Collection and Verification department complained about having

no training team in their department, emphasize the impact on performance of staffs without training and mentioned about the crucial of having training team to support their job Besides,

as Ms Mi – Senior Debt Collection Officer, assigning senior staffs to attach and guide for new staffs also affect the quality of training due to the difference of skill and knowledge of these senior staffs It can be seen that through training staffs will be supplemented with professional knowledge and skills to perform better the assigned work Training also helps staffs having better understand the work, better grasp about operations, handle situations well at work, work more self-conscious, have a better working attitude, improve their adaptability in the future Since then, the quality and efficiency of work is enhanced In addition, for new staffs who are not familiar with the job, training will help them get used to the job; mastering organizational structure and functions, help them equip additional knowledge and skills needed to complete the task assigned However, due to the limitation of cost for operation, it is necessary to identify

the best solution and considered carefully in terms of expenses to meet the actual need of department and also save cost for the bank

In fact, the investment in existing human resources training and development in Collection and Verification department is not well prepared and currently these departments

do not have a strategy for training and developing human resources, both short and long term,

in accordance with their development goals Training activity in many enterprises shows that giving employees new skills or knowledge not only helps them get things done faster and more efficiently, but also improves their satisfaction at work and has the motivation to increase their own performance Employees are instructed to do a good job, they will have a confident attitude, work more independently and proactively; on the contrary, they become depressed and leave the company Therefore, solving the problem in terms of training is essential and practical

To sum up, in order to solve two main factors causing the problem of bad training skill, Collection and Verification department need to establish team specializing in training or organize training for key staff before training for new employees Below are three solutions that I would like to propose in order for Collection and Verification department to overcome the problem they are facing with the main solution is Propose to establish training team for Verification and Collection department which can help these departments solve the problem in the long term

5.1 Solution 1: Propose to establish training team for Verification and Collection department

Hiring good people is not enough Company should also provide the staff with support and training so that they can develop the skills and work with best quality That is the reason for the training However, this is the problem: due to limited resources and other priorities, many department do not provide structured training plans In fact, many companies seem to ignore the importance of training for new employees in order to save costs This not only creates a workforce that lacks of professional skills, but also negatively impacts the psychology

of new employees, particularly many employees who are not trained before starting work so having poor performance, causing depression from the beginning Even many employees quit their jobs very early because they could not catch up with the work

In case of Collection and Verification department of VP Bank, these two departments currently do not have a team specializing in skill training for employees They often instruct experienced staff to guide new employees However, this method is ineffective at these departments As many employees in these departments have reflected, senior staffs who have