The customer’s satisfaction in ho chi minh city branch of commercial bank for investment and development of vietnam joint stock company (BIDV HCM)

UNIVERSITY OF ECONOMICS HO CHI MINH CITYInternational School of Business ---TRAN NGOC LAN THE CUSTOMER’S SATISFACTION IN HO CHI MINH CITY BRANCH OF COMMERCIAL BANK FOR INVESTMENT A

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-TRAN NGOC LAN

THE CUSTOMER’S SATISFACTION

IN HO CHI MINH CITY BRANCH OF

COMMERCIAL BANK FOR

INVESTMENT AND DEVELOPMENT

OF VIETNAM JOINT STOCK

COMPANY (BIDV HCMC)

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2019

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-TRAN NGOC LAN

THE CUSTOMER’S SATISFACTION

IN HO CHI MINH CITY BRANCH OF

COMMERCIAL BANK FOR

INVESTMENT AND DEVELOPMENT

OF VIETNAM JOINT STOCK

COMPANY (BIDV HCMC)

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: PROF TRAN HA MINH QUAN

Ho Chi Minh City – Year 2019

EXCUTIVE SUMMARY

Nowadays, in the context of the economic environment, the competition among the commercial banks in Vietnam to increase their scale as well as their profits is unavoidable According to Vyas V and Raitani S (2014), there are many elements that affect to the switching of customers ‘behavior when they work with the banks One of the most important elements is the customer satisfaction Therefore, the commercial banks now will focus on developing the products; improve the quality

of services so that they can please their customers, increase the level of customers’ loyalty

The primary research and the secondary research will be used in this report so that

we can analyze and conduct the results about how the customer’s satisfaction effect on the loan scale in Ho Chi Minh City Branch of Commercial Bank for Investment and Development of Vietnam After researching, the information and data will be used so that we can give some recommendations about what the managers as well as the board of director of Ho Chi Minh City Branch of Commercial Bank for Investment and Development of Vietnam should do to improve their customer satisfaction in order to increase the loan scale, achieve more profits and complete the assigned business plan in this year as well as the following years

ACKNOWLEDGEMENTS

I would like to acknowledge all people who supported me during the time I

studied in ISB Without them, I could not be here today

I would like to thank all my lovely friends, my sweet colleagues and my dearest classmates at ISB and BIDV for helping me complete the program

I also would like to thank my best supervisor - Professor Tran Ha Minh Quan for supporting me, give me many advices, and guidance me through the time of

making this report I would not complete this report without his helping

Especially, I would like to send my sincere thankfulness to my parents and my husband for their encouragements and supports

TABLE OF CONTENTS EXCUTIVE SUMMARY

ACKNOWLEDGE

I INTRODUCTION

1 The company background

2 The structure

II PROBLEM CONTEXT

1 The reducing in loan scale of Bank for Investment and Development of

Vietnam – Ho Chi Minh City Branch (BIDV HCMC)

2 The customer’s satisfaction in Bank for Investment and Development of

Vietnam – Ho Chi Minh City Branch (BIDV HCMC)

III PROBLEM IDENTIFICATION

1 Interest Rates

2 Inexperience and untrained employees

3 Security and privacy

4 Late in processing loan disbursements

5 Cause – Effect Map

IV CAUSE VALIDATION

1 Interest Rates

2 Security and privacy

3 Late in processing loan disbursements

4 Inexperience and untrained employees

V RECOMMENDATION AND SOLUTION

I INTRODUCTION

1 The company background

Joint Stock Commercial Bank for Investment and Development of Vietnam was established on April 26, 1957 as Vietnam Construction Bank Over 60 years of construction and growth with two name changes and added functions and duties, Joint Stock Commercial Bank for Investment and Development of Vietnam has always successfully completed the tasks corresponding to each stage of development of the country and achieves many honors as well as noble rewards such as Independent Medal I,

Labor Medal I, The Labor Hero

in the renovation period,

Ho Chi Minh City Branch of Commercial Bank for Investment and Development

of Vietnam, which was established in 1976, is one of the largest branches in the Bank for Investment and Development of Vietnam system with a total assets of VND 10,000 billion and a number of staff is nearly 300 people

After 40 years of construction and operation, Ho Chi Minh City Branch of Commercial Bank for Investment and Development of Vietnam has always excellently fulfilled its responsibilities for each stage of development of Vietnam Since the beginning of founding till now, Ho Chi Minh City Branch of Commercial Bank for Investment and Development of Vietnam has always been the flagship of the industry as well as one of pioneer and dynamic branches of

BIDV in developing new products and services to serve customers With the motto

"Sharing Opportunity, Successful Collaboration", Ho Chi Minh City Branch of Commercial Bank for Investment and Development of Vietnam has been very successful in its role as the lead bank for arranging syndicated loans, co-financing large-scale investment projects In 40 years, Ho Chi Minh City Branch of Commercial Bank for Investment and Development of Vietnam has sponsored for many major projects in Ho Chi Minh City such as Tan Tao Industrial Park, Linh Trung Export Processing Zone, Hung Vuong Street, Dien Bien Phu Street, Ben Nghe Port, OBV Pharmaceutical Company, Phu My Steel Plant, Pomina Steel Factory, New World Saigon Hotel, Exxon Mobil Unique Vietnam Limited, Nguyen Van Linh Avenue belongs to new urban area Phu My Hung, Kinh Do company

2 The structure

Through more than 40 years of operation, Ho Chi Minh City Branch of Commercial Bank for Investment and Development of Vietnam has always been a pioneer and dynamic branch in modern and customer-oriented technology Along with the development of Ho Chi Minh City, Ho Chi Minh City Branch of Commercial Bank for Investment and Development of Vietnam conducts a comprehensive business, operating with all functions of the commercial bank branch: currency trading, credit, banking services and Non-bank, to serve customers of all economic sectors

Firuge 1 BIDV HCMC organizational structure

(Source: BIDV HCMC Human Resources Department)

Internal Management Division

The Subordinate Units

Customer

Relationship

Department

The Operational Division

The current organizational model of the Ho Chi Minh City Branch of Commercial Bank for Investment and Development of Vietnam consists of 4 blocks, with 14 rooms, including 11 rooms at the head office – 134 Nguyen Cong Tru Street, Nguyen Thai Binh Ward, Districts 1, HCMC and 3 subordinate units

In Ho Chi Minh City Branch of Commercial Bank for Investment and Development of Vietnam, we have four Customer Relationship Departments which has almost 50 people (including manager and employees) who take care of more than 50 companies, mainly production and trade companies

II PROBLEM CONTEXT

1 The reducing in loan scale of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch (BIDV HCMC)

In a world of globalization nowadays, the commercial banks play an important role and are considered as the most important financial intermediary organization

of the economy in every country in the world According to Quoc Thuy (2018), in Vietnam, the three biggest commercial banks that we can count are Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) The competition among these commercial banks is very fierce now They have to focus

on developing the new customers as well as maintaining the current customers so that they can increase the scale and maximize the profits

Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch (BIDV HCMC), Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch (Vietcombank HCMC) and Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch (Vietinbank HCMC) are the three biggest branches in the system of these commercial banks because they contribute more than 20% of scale and profits of their own banks’ system

Firuge 2 Loan Scale in BIDV HCMC, Vietcombank HCMC & Vietinbank HCMC

from 2016 – 2018 (Source: Cafef)

In recent years, although the competition is fierce and the interest rate of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch is quite competitive compared to Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch and Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch, the

loan scale of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch did not grow as expected

Specifically, from 2016 to 2018, the loan scale of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch decreased 7 percent while the loan scale of Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch and Vietnam Joint Stock Commercial Bank for Industry and Trade – Ho Chi Minh City Branch increased more than 10 percent Based on the fact that Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch is one of the biggest branches in Bank for Investment and Development of Vietnam system, the decline in loan scale of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch not only affects on the business plan of its own branch but also affects on the business results of the whole systems Therefore, this is the urgent problem that Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch needs to solve so that they can increase both scale and profit as well as maintain its position as one of the biggest and the most effective branches

CHEMICAL (7) FOOD (6) METAL STEEL IRON (8) PACKAGING (3) REAL ESTATE (5) TELECOMMUNICATION (1)

In more than 50 production and trade companies, there are 30 main companies that are considered as the close customers because they have relationships over 10 years and take more than 80 percent of loan scale as well as bring more than 50% profits of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch These 30 companies are divided into many different business groups such

as Chemical Production, Food Industry, Metal Steel Iron Manufacturer, Packaging Industry, Real Estate Business, etc…

Firuge 3 Number of companies in each business/industry

(Source: BIDV HCMC Customer Relationship Departments)

Based on the financial statements, the companies’ situation and the profitability, Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch will consider granting a credit limit as well as appropriate lending rate for

companies The customer will use it to pay for the companies’ production costs or expenses in operation and development

b

le

Table 1-2-3 Loan Scales in 2016 – 2018

(Source: BIDV HCMC Customer Relationship Department)

In recent years, although the interest rate of Bank for Investment and Development

Year 2017 (MILLION VND)

Quarter 1/2017 Quarter 2/2017 Quarter 3/2017 Quarter 4/2017

CHEMICAL 772,031 743,169 873,639 994,450 FOOD 2,689,372 2,818,804 3,071,974 3,368,264 METAL STEEL IRON 866,545 852,849 974,510 1,075,716 PACKAGING 70,127 77,132 87,343 97,768 REAL ESTATE 1,479,054 1,473,170 1,490,997 1,499,736 TELECOMMUNICATION 99,133 86,221 101,447 148,015

Year 2018 (MILLION VND)

Quarter 1/2018 Quarter 2/2018 Quarter 3/2018 Quarter 4/2018

CHEMICAL 663,906 656,153 781,560 914,749 FOOD 2,850,831 2,777,013 3,109,831 3,187,616 METAL STEEL IRON 828,749 742,016 863,390 1,021,152 PACKAGING 68,785 63,369 77,413 89,506 REAL ESTATE 1,413,540 1,435,733 1,484,342 1,492,607 TELECOMMUNICATION 103,166 110,905 134,792 152,221

Foreign Trade of Vietnam – Ho Chi Minh City Branch and Vietnam Joint Stock Commercial Bank for Industry and Trade – Ho Chi Minh City Branch, the loan scale did not grow as expected because the reducing of debt scale from main industries which take high percentage of loan scale

Firuge 4 The percentage of loan scale in each business/industry in BIDV HCMC

(Source: BIDV HCMC Customer Relationship Departments)

Metal Steel Iron Groups takes 14% – 15 % of the loan scale, Food takes 46% – 47%, and Chemical Industry takes about 14% while Real Estate Business takes about 23% of the loan scale of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch While the loan scale of Real Estate Business did not

Quarter 2/2016

Quarter 3/2016

Quarter 4/2016

Quarter 1/2017

Quarter 2/2017

Quarter 3/2017

Quarter 4/2017

Quarter 1/2018

Quarter 2/2018

Quarter 3/2018

Quarter 4/2018 Year 2016 Year 2017 Year 2018

PACKAGING REAL ESTATE TELECOMMUNICATION

Quarter 3/2016

Quarter 4/2016

Quarter 1/2017

Quarter 2/2017

Quarter 3/2017

Quarter 4/2017

Quarter 1/2018

Quarter 2/2018

Quarter 3/2018

Quarter 4/2018

7 CHEMICAL 6 FOOD 8 METAL STEEL IRON 3 PACKAGING 5 REAL ESTATE 1 TELECOMMUNICATION

change so much through the year, the loan scale of the remaining industry groups dropped quite a lot, especially in Quarter 1 and Quarter 2 in every year

Firuge 5 The loan scale in each business/industry in 2016 – 2018

(Source: BIDV HCMC Customer Relationship Departments)

Firstly, the biggest drop in loan scale is Food groups, from 3,364,454 million VND down to 3,187,616 million VND in 3 years and at some point of time, Food groups’ loan scale is just 2,689,372 million VND – the number of loan scale in quarter 1/2017

The second of main dropping loan scale is Chemical Industry It accounts for 1,000,000 million VND outstanding loans of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch in 2016 However, it decreased in 2017 and 2018 so much and is only approximately 700,000 million VND, even in quarter 2/2018; the Chemical Industry’s loan scale is about 656,153 million VND

Finally, Metal Steel Iron Groups decreased from 1,102,447 million VND to approximately 800,000 million VND in quarter 1 and quarter 2 in 2017, 2018 Three above groups take more than 70% of loan scale of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch Therefore, the decreasing

in loan scale of those groups makes the business plan of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch could not complete

2 The customer’s satisfaction in Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch

According to Be Bramley (2017), the satisfactory of customer is the most important component in any kinds of business Nowadays, when the competition among the banks is intense, the customer’s satisfactory will strongly influence the market share of the banking industry For instance, if customers are satisfied with bank A, they will tend to trade a lot at that bank compared to the remaining banks

In the opposite, if they are unhappy, they will not come to that bank anymore to trade

In addition, based on the research of Dr Trapti Pandya, Dr Neeti Mathur & Himanshu Mathur (2016), there are many factors which have strongly influence on customer satisfaction in banking business Those are atmosphere, behavior as well

as experience of employees, speed, interest rate, security and privacy

According to Huong Giang (2016), The Vietnam Report Corporation announced that Bank for Investment and Development of Vietnam (BIDV) is ranked 2ndposition in the list of 10 most prestigious Vietnamese Commercial Banks in 2016, higher than Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank)

Firuge 6 Top 10 prestigious commercial banks in Vietnam in 2018

(Source: Vietnam Report)

However, to the year 2018, based on the statistics of Vietnam Report (2018), the customer satisfaction of Bank for Investment and Development of Vietnam is lower than Joint Stock Commercial Bank for Foreign Trade of Vietnam and Vietnam Joint Stock Commercial Bank for Industry and Trade It may be the reason for reducing in loan scale in BIDV in general and in of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch in particularly because when the customers did not feel happy with the services or products of a bank, they will not come to trade anymore And even if trading is required in order to maintain the relationship with that bank, the number of trading will be also very low compared to the other banks

Like we talked above, and like Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch and Bank for Foreign Trade of Vietnam – Ho Chi Minh City Branch Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch contributes more than 20% of scale and profits of Bank for Investment and Development of Vietnam system Therefore, the customer's dissatisfaction, leading to the reducing in loan scale, will affect strongly on business plan of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch as well

as the scale and profit of Bank for Investment and Development of Vietnam system

III PROBLEM IDENTIFICATION

It is very important to find out the affection of the customer satisfaction in Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch on loan

scale because when the business plan of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch could not complete, the salary as well as benefits of employees will be affected strongly because most of the bank nowadays will use KPIs for salary and benefits policies Moreover, if the business plan of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch could not complete, the business results of Bank for Investment and Development of Vietnam system will be also affected

There are many reasons for the switching behavior of customers in the banks and one of the most important reasons is the customer satisfaction Dr Trapti Pandya,

Dr Neeti Mathur and Himanshu Mathur (2016) stated that the factors which have strongly influence on customer satisfaction in banking industry are atmosphere, behavior and experience of employees, speed, interest rate as well as security and privacy If we make our customers feel happy and satisfied, they will stick for a long time, and otherwise they will go to another bank to cooperate Mr Tran Dang Khoa – current manager of Customer Relationship Department 2, said that in the past, there is a customer who left Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch because at that time, the interest rate as well

as the employees’ service makes customers feel dissatisfied Therefore we can’t ignore the fact that the customer satisfaction is the major issue that all of banks nowadays should concern about

After conducting six in - depth interview sessions from 2 main groups (the first group is managers/chief accountants/chief financial officers who are working the commercial and manufacturing companies, the second group is employees/ managers of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch) as well as researching related theories, there are some key reasons that make customers feel uncomfortable and dissatisfied Those are the time of solving customer’s problem (late in processing loan disbursements), the interest rate, the lack of experiences of new employees as well as the security and privacy

of customer information

1 Interest Rates

Nowadays, the competition among production and trade companies in the same industry is very fierce In order to dominate the market share and maximize the profits, most of companies have to reduce their cost in management and producing but still ensuring the quality of product and the price is reasonable Saving interest expenses is one of the effective ways to reduce the cost of company In fact, the customers will choose the bank with the lowest interest rate so that they can decrease their company’s cost This is one of the reasons why the loan scale decreases in the beginning of the year such as Quarter 1 and Quarter 2 Because in the beginning of the year, the interest rate of BIDV HCMC is higher than the interest rate of Vietcombank HCMC and Vietinbank HCMC about 0.1% per year

Mr Nguyen Duy Hung – chief accountant of Dry Cell and Storage Battery Joint Stock Company (PINACO), complained that in 2018, the interest rate of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch in Quarter 1 and Quarter 2 is higher than Vietcombank and HSBC – the banks that PINACO are also in relationship and having outstanding loan Therefore, with the role of controlling business costs of PINACO, he has to deal with the other bank for cutting costs

In addition, the lending rate has to be fixed for loan terms from 3 months to under

12 months The sudden change in interest rates of Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch leads to customer dissatisfaction as well as making the employees of Customer Relationship Departments work with customers more difficult For example, Mr Vu Duc Thinh, chief financial officer of Kido Group – a company in Food industry, said that the lending interest rate for Kido in 2018 which is announced at the beginning

of year was 6.0% per year from 01/01/2018 to 31/12/2018 However, due to fluctuating interest rates, after three months, Bank for Investment and Development of Vietnam – Ho Chi Minh City Branch issued a notice raising interest rates to 6.5% per year from 15/04/2018 According to Mr Vu Duc Thinh, this makes hard and uncomfortable for customers in predicting as well as controlling companies’ costs

2 Inexperience and untrained employees

According to Quang Thang (2018), Bank for Investment and Development of Vietnam had almost 1,000 employees left the job in 2017 Therefore, Bank for Investment and Development of Vietnam had to recruit more employees in 2018

so that the business plan could be guaranteed completing After recruitment, they would be trained so that they can get familiar with the work as quick as possible

Firuge 7 Fluctuations in number of employees at banks (Source: Zing.vn)

However, Ms Nguyen Thi Kim Nhan, manager of Human Resources Department, said that the time for this training is about 2 days, and then they will be caught in the whirl of work because workload of a Customer Relationship employee is quite heavy compared to the other Department Some of them will not be trained in a methodical and fulfill way so that they are able to work Moreover, for most of them, the work experience is usually under 2 years, hence, they are not able to

convince customers easily so that customers will trade more in Bank for Investment and Development of Vietnam

Based on the research of Rida Athar and Faiza Maqbool Shah (2015), training the employees not only helps them to improve their skills and performances better in work but also enhances the efficiency of a company at the highest level In the opposite, the lack of experience and training of an employee will lead to the dissatisfaction of customers Ms Nguyen Thi Thanh Tuyen, chief accountant of Ngo Han Company, said that most of employees who she worked with in Customer Relationship Department 2 in the past are very good at capturing customer needs as well as advising customers about interest rates, exchange rates However, in recent time, when Bank for Investment and Development of Vietnam system expanded, former employees went to new branches to work, newly recruited employees to work at Customer Relationship Department 2, the advising about interest rates, exchange rates for customers are not good as before Moreover, the mistakes from new employees are inevitable For example, the new employees may forget in collect debt; forget to tell customers about changing interest rates This issue makes the customers feel that they not served as well as the other banks, leading to the movement in trading in generally and loan documents in particularly from Bank for Investment and Development of Vietnam

to other banks

3 Security and privacy

According to Ratan Jyoti (n.d), the data of customer information is very important

to banks and is the major concern of bank security nowadays Privacy preservation

of customer information is one of the most important aspects that lead to the decision in trading of customer in bank industry when the internet developed rapidly; leading to the theft of customer information data became more seriously day by day

In recent time, there are more and more customers who deposit money at banks are lost because their accounts are hacked In order to protect the rights and property of customers, most of Vietnamese banks in generally and Bank for Investment and Development of Vietnam in particularly are improving their security system more as well as tightening their regulations on transactions so that crooks have no chance to steal customer information or make bad transactions

Ms Nguyen Thi Thanh Tuyen, chief accountant of Ngo Han Company, said that for all transactions that take money from this customer account to the other account, the originals are necessary for implementing these transactions to guarantee the crooks have no chance to make bad things She also said the information about lending and deposit interest rate of customer is a privacy thing and need to be protected Otherwise, customers in the same industry or lending and deposit at the same bank will compare and wonder why their company did not have a good interest rate as the other ones In fact, a company with good financial

statement, good revenue and profit will be offered better interest rate compared to the remaining ones in the same industry That is common sense in banking industry

To sum up, the security and privacy of customer information data is important and necessary in bank industry in generally as well as in Bank for Investment and Development of Vietnam – Branch Ho Chi Minh City

4 Time in processing loan disbursements

Regarding to time of processing a loan disbursement, there are 3 main departments which are related directly to resolve loan application of customers, which contain the following: Customer Relationship Department is responsibility for receiving applications, checking invoices, disbursement documents, making loan proposals and transferring credit management department Credit Management Department

is responsibility for receiving loan application documents from Customer Relationship Department, checking documents again, creating loan account on the system and transferring customer service department Finally, Customer Service Department receives loan documents which are transferred from the Credit Management Department and use them to make a payment for company’s costs or employees’ salary based on the approved loan documents

Ms Nguyen Duy Hung, chief accountant of Dry Cell and Storage Battery Joint Stock Company, said that most of loan disbursement files of his company need to

be solved before 3pm because his partners need to withdraw cash to use while the

banks which are not located in central cities will close their doors before 4pm in the afternoon However, in fact, his loan disbursement files are often late compared to his expectation The loan disbursement files are usually given to Customer Relationship Department at 10 am but until 4pm, these loan disbursement files are resolved and money is transferred to his partners’ account This is inconvenient for her partners in withdrawing cash and affect to the reputation of his company

Based on the result of Machogu AM & Okiko L’s study (2015), speed is one of the factors which affect on customer satisfaction in banking industry If the time of processing loan files in particularly as well as the time of solving customer’s problems in generally is faster, the customer satisfaction to Customer Relationship Department employees will be improved As a result, the customer satisfaction of Bank for Investment and Development of Vietnam – Branch Ho Chi Minh City will be advanced

Mr Tran Dang Khoa, manager of to Customer Service Department 2, said that there is a misunderstanding between Customer Service Department employees and Credit Management Department employees, leading to the time of processing loan disbursements is prolonged

In addition, the absence of the loan approver will affect to the time in processing loan disbursement For instance, when the manager of Credit Management Department goes to a meeting or going out from 1 hour to 2 hours for personal reason, there is nobody to sign the loan disbursements so that the employees of

Credit Management Department can transfer loan files to Customer Service Department The loan disbursement will be slowing down more time compared to expect

Lack of skills in communication (convince, advice customers…)

5 Cause – Effect Map

Loan Scale

Decreased

Interest Rate

Late in processing loan disbursements

Customers’

Satisfaction

Security and Privacy

Inexperience

&untrained employees

Uncompetitive interest rate

Change interest rate suddenly

Experiences under 2 years

Absence of approval for disbursement

Misunderstanding between Customer Relationship Dept &

Credit Management

Dept

Customer information

Information about interest rate of customer

IV CAUSE VALIDATION

Based on the above cause and effect map as well as based on the conducting of six in-depth interviews from two groups (the group one is managers/chief accountant/chief financial officer who are working the commercial and manufacturing companies, the group two is employee/manager of Customer Relationship Departments), based on both secondary data research and the informed theories, we can notice that the main causes which leading to reduce in customers satisfaction in Bank for Investment and Development of Vietnam – Branch Ho Chi Minh City are the late in processing loan disbursement as well as the lack of experiences and training of employees It is very important for the board of director of Bank for Investment and Development of Vietnam – Branch

Ho Chi Minh City as well as the Credit Relationship Department managers to have

an action plan to solve these problems immediately so that they can increase the loan scale and maintain their position as one of the biggest and most effective branches in Bank for Investment and Development of Vietnam system