PROJECT REPORT general introduction about SeABank

However, while handling home loan applications ofcustomers, I also recognized a number of shortcomings at both the bank and branch level.. Figure 1: Organisational structure diagram of S

Firstly, I want to give a special thanks to Mrs Sonia Adam-Ledunois and Mr PhamTuan Anh, who is my tutor and taught me a lot during the time I was in the process tocomplete this report You pointed out many important things without which I cannot finish

my essay Besides, I would like to thank Ms Ly Thi Khanh Hoan – the branch director and

Mr Luong Duc Bao - my manager at Seabank Dai An for helping me complete myresponsibility and also other supports during my 3-month internship process Even though Ihad a lot of mistakes but all of you still understand me and keep helping me unconditionally.Lastly, I’m so happy because all of you helped me a lot during my internship and I reallyrespect it

ACKNOWLEDGEMENTS i

CONTENTS ii

LIST OF TABLE iii

LIST OF FIGURE iv

PREAMBLE 1

PART 1: OVERVIEW OF SEABANK AND THE DAI AN BRANCH 2

1.1 About Seabank 2

1.2 Host Firm: Seabank’s Dai An Branch 3

1.3 The reason why i choose this topic 4

1.4 Missions of internship 5

PART 2: WORK PLACEMENT EXPERIENCE AT SEABANK, DAI AN BRANCH 6

2.1 Over view of Credit support department 6

2.2 Overview of my work placement: 7

2.3 About car loan product at Seabank 7

2.4 My jobs at branch Dai An and case studied 11

Mission 3: Comparing with competitor 17

2.5 Commercial result and KPIs 20

2.5.1 Results of host firm 20

2.5.2 My commercial results 20

PART 3: WORK PLACEMENT ASSESSMENT 22

3.1 Contributions 22

3.2 Some difficulties encountered during my internship: 22

3.3 My experience gained 23

3.4 Future career plan 23

CONCLUSION 25

REFERENCES 26

LIST OF TABLE

Table 1: Project implementation plan 5

Table 2: Loan term – loan limit 10

Table 3 :My daily jobs at branch 11

Table 4 : Evaluating the credit score 12

Table 5: Total score of customers influencing credit decision 13

Table 6 : The credit score of Mr.A 14

Table 7: Business case 2 - Property purchase loan 15

Table 8: Business case 3 - Property purchase loan 16

Table 9 Seabank compares with competitors on car loan market 17

Table 10 : SWOT 18

Table 11: Summarized KPIs of Seabank Dai An 20

Table 12: My total commercial result after 3 months 20

Table 13 : Future plan 24

LIST OF FIGURE

Figure 1: Organisational structure diagram of Seabank’s Dai An Branch 4Figure 2 : 5C Rule 4Figure 3 : My department’s organization 6

My work placement or internship is performed during 3 months at the Dai An Branch ofSeabank During these 3 months, I was assigned various tasks in the retail banking division ofthe branch The area that I spent most time on is car loans With the help of my supervisor,

Mr Luong Duc Bao and other staffs, I was able to acquire many new skills and knowledge inretail banking, especially home loans However, while handling home loan applications ofcustomers, I also recognized a number of shortcomings at both the bank and branch level Inthis work placement report, I will elaborate on the experience I have undergone during myinternship and Seabank Dai An branch, the skills that I have acquired and my contributions tothe host firm’s retail banking division, especially with regards to car loans

PART 1: OVERVIEW OF SEABANK AND THE DAI AN BRANCH

1.1 About Seabank

a History of Seabank

General introduction about SeABank

In 1994, the Southeast Asia Commercial Joint Stock Bank – SeABank is one the firstVietnamese 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 ofsustainable development, aiming to be among the leading commercial joint stock banks inVietnam

Ranked A for 4 consecutive years by the State Bank of Vietnam, SeABank has beenknown as one of the fastest growing, and most sustainably developing banks With a team ofyoung, dynamic, wholehearted, and professionally trained staff, SeABank is committed toprovide the best products and services while working as a reliable partner in the industry offinancial banking to be

 Head office: 16 Lang Ha str., Hanoi, Vietnam

 Tel (84) 4 7723616 – Fax (84) 4 7723615

 E-mail: seabank@seabank.com.vn

 Website : www.seabank.com.vn

b Vision, mission and main objective

Mission: SeABank strives to become a Banking-Financing Group (SeABank Group)with outstanding values of brand reputation and asset quality in Vietnam market and gradually

in regional markets The bank commits to provide a range of highly professional products,from conventional commercial banking to high-end investment banking and financial services

to targeted customer segments, to optimize the values for bank customers, shareholders andthe sustainable growth of bank group, to contribute to the mutual development of thecommunity and the society.

Vision: SeABank strongly develops its system under the architecture of a highlyeffective versatile retail bank, and gradually establishes the model of a professionalinvestment bank

SeABank is developing fully as an advanced versatile banking-financing group who hasstriking values of competitiveness, quality and brand reputation

C, Develop strategies

Vietnam, with the characteristics of an emerging market, is actively integrating underthe trend of globalization As a result, a variety of financial and banking needs is arising, fromliving quarters to industrial zones, from manufacturing, trading to infrastructure financing,etc Those opportunities are explored at various levels subject to the selection of strategies ofeach financial institution

Customer-focus organization model

Consolidation and development of strong competitive advantages to ensure thecapability of recognizing and converting opportunities into transaction and developingsustainable financial indicators

Re-establishment of standard and processes to ensure centralized management yetmaintain necessary flexibility of business variety in important areas

Application of best practices of risk management and business development

1.2 Host Firm: Seabank’s Dai An Branch

Seabank’s Dai An Branch was founded on 08th November 2007 For ten years ofdevelopment, the branch currently has three transaction offices with total of 55 staff Togetherwith the whole bank, the branch’s board of managers has always tried to improve its businessperformance, affirming position of branch in the branch as well as in financial market

In 2013, the branch rewarded certificate for merit from Board of Director for thebranch’s contributions

Figure 1: Organisational structure diagram of Seabank’s Dai An Branch

Seabank’s Dai An Branch provides all of banking services and products of Seabank.However, the Branch’s current business strategy aims to retail customers, especiallyhousehold and individual customers around the area Some major services include: car loans,home loan, credit card… These retail products create higher profit and lower risk thanservices for corporate customers

Working style “5C Rule”

5C rule is a standard system which staff

should apply to communicate with customer

anytime, anywhere It helps a lot to build

Seabank to become strong Brand in Vietnam

Finance Market Because bank have the

satisfaction from customer, have believes and

the loyal It’s more important than the good

health of financial index

Figure 2 : 5C Rule 1.3 The reason why i choose this topic

In 2016, the Uber and Grab taxi service in Vietnam has officially deployed Therefore,people who have their own car now can make extra money So, for people with a stable jobwho want to make a loan from the bank could buy their dream car In the 2 years later, therewere 36,809 vehicles involved In particular, Ho Chi Minh City has 21,601 vehiclesparticipating in the Driver; Hanoi 15,046 vehicles participating in the Driver

(http://ictnews.vn)

This branch is in the area that refer to the most developed area of District in particularand Hanoi City in general (high population: 236.981 people (in 2010) with total area of 12.04km²) In this area, there are many big companies, corporations, attracting lots of workers, sothe demand of transportation is very high Beside, Seabank bank has a good reputation inbanking sector and community so believe in Seabank's services With the special treatment

from the bank for customers when they make a loan, this service will become more and morepopular in near future.

1.4 Missions of internship

Table 1: Project implementation plan

The duration of the project: 04/02 /2017- 04/05/2017

Date of start Date of final Phase A : Create a good relationship with host firm and all

Task 2 : Studying the bank’s services are offered by this bank 05/02/2018 08/02/2018Task 3: Studying the customer needs and market 09/02/2018 12/02/2018Task 4 : Understand working procedure and work like full time

Phase B : Try to work effectively on new position 14/02/2018 12/03/2018

Task 5 : Learning this service at car loan service at Dai An branch

Task 6: Find out the advantages and disadvantages of this service

Task 7 : Making a comparison of the services provided in relation

Phase C : Survey for customer needs 14/03/2018 02/04/2018

Task 8 : Searching information about other banks car loan service 14/03/2018 18/03/2018Task 9 : Make the comparison and ask tutors, co-worker to have

Phase D : Find customer and successfully sign new contract

Task 13 : Learning about procedure and other service to gain

Task 14 : Work directly to solve customer problems 13/04/2018 20/04/2018

Phase E : Complete my internship 21/04/2018 04/05/2018

Task 19 : Synthesize the results and evaluate them 21/04/2018 24/04/2018

PART 2: WORK PLACEMENT EXPERIENCE AT SEABANK, DAI AN BRANCH

2.1 Over view of Credit support department

My internship took place in the context of the home loan and I go to the bank as anapprentice With the purpose of learning and practicing in the real banking environment andobtaining the manager's permission as well as guidance, I joined in the Credit servicedepartment as an assistant of mr Luong Duc Bao – customer relation officer

Individual customer department is one of two main divisions of Seabank Dai Anbranch The room includes 7 bank officer, and one manager The manager not only takesresponsibility for managing the brand but also sells as a staff.

Figure 3 : My department’s organization

Credit Department has the function of organizing, managing and implementinginvestment loans from Seabank Dai An branch and other sources of funds, specifically:

- Drafting credit contracts, co-financing contracts, loan security contracts, notarizationand registration of secured transactions for loan security assets

- Manage the disbursement of contracts, follow up, the director of debt recovery, fullinterest payment on time

- Perform periodical inspection before and after disbursement in order to manage thedisbursement for the right purpose and the right beneficiaries;

- Monitoring and evaluating the effectiveness of investment projects and financialsituation of customers in order to ensure timely and timely return of capital and interests

2.2 Overview of my work placement:

As a student in the international bachelor program, I have develop a keen interest in thebanking sector, especially retail banking businesses I believe that in retail banking, most ofthe action takes place at the branch level while headquarter is more focused on devisingcorporate strategies and working with large

institutional clients Therefore, I chose to do my

internship at a branch of a commercial bank in order to

get a hands on experience of the retail banking

business and learn as much as possible Seabank Dai

An suits my objectives very well as it is a

well-structured, relatively large branch of Seabank, one of

Vietnam’s most reputable banking institutions In

addition, the branches’ busy operations will give me

greater exposures and more opportunities to take part

in the business activities at the host firm

As mentioned above, Seabank is currently offering many attractive car loan programs.The huge increase in the number of car loan applications force retail banking staffs to dedicatethe majority of their time and effort on this task As an intern, less than 2 weeks into my workplacement program, I began to be involved in the car loan process all the way to the end of

my internship, starting from handling paperwork to processing applications

2.3 About car loan product at Seabank

Product: SEACAR

a Characteristics of the car loan package at SeABank

- Borrowing limit

SeABank supports car loan up to 80% of loan demand, which is relatively highcompared to many banks that buy car loans on the market today In addition, if secured,SeABank can support up to 80% of loan demand

- The term of the loan

With SeABank's SeABank loan, customers can borrow up to 96 months (8 years) This

is also the maximum loan term common to most car loan products in the market This is notthe mandatory period of the loan package, given the current good financial condition andstable income, customers can borrow with time shorter

- Collateral

The collateral for a loan to buy a car at SeABank can be the car itself or other assetsowned by customers if they want to borrow 100% of the demand

In addition, the Seacar loan package has the following advantages:

Customers may be entitled to a grace period of principal repayment within the first 3months

Simple procedure, quick process

Disbursed upon the appointment of a vehicle registration

The repayment method is suitable for the diverse financial situation of customers

b What are the conditions for buying a car at SeABank?

 To buy a house at SeABank, customers need to meet the following conditions:

 Individuals between the ages of 18 - 65

 Having full civil legal capacity and civil act capacity

 Household registration / KT3 in the province / city where SeABank is located

 Able to finance repayment of loans

c Application file for SeABank car loan

 Loan application form and repayment plan (in the form of SeABank);

 Personal ID card / passport, household registration / KT3;

 Proof of repayment;

 Documents relating to the security / guarantee property;

 The documents related to the purchase of apartments, houses, land for the project.Based on the table above, we can see the process of loan processing in Dai An branch, afterreviewing the customer records, the unqualified records will be returned and I will guide thecustomer step re-apply, as well as explain why their application was not approved If thepreliminary evaluation round passes, the client’s dossier will be passed to each department forapproval so that there are no errors when the loan can be made

Figure 4 : The car loan process

(Source: Credit department)

Guide customers to make loan

application, customer identification

Appraisal and control records

Approved

Deny

Drafting a credit contract

Signing and signing secured

transactions

Disbursement of the loan

Track the use of the loan

Renew and finalize the loan

Accep t

Table 2: Loan term – loan limit

Loan tern (months)

IndividualCar requested ( Brand new 100% and car value

Car requested ( Brand new 100% and car value

Old cars are worth more than 80% or new cars

Trucks (maximum limit depending on vehicle

origin)

60% (USA, Japan,Korea, Europe)50% (Vietnam, China)

36

(Source: General data department)

With new cars and 100% of import value of over VND 1 billion, vehicles are likely to

be used for a long time and have to be repaired so the loan period can be up to 8 years Thequality of the car along with the price should be less than 1 billion car loans in only 6 years.And lowest with used vehicles and export from China These vehicles will need a lot ofmaintenance money because of the long-term use, affecting the use of the customer,especially with customers buying cars to business leads to difficulty repayment The bank alsohas a low return when customers default

2.4 My jobs at branch Dai An and case studied

Table 3 :My daily jobs at branch

From 7.30

To 11h30

- The first duty of is greeting the customers entering into branch

- Guiding and solving queries of customer

- Read Seabank’s regulation and documents

- Evaluate car loan customer’s financial position

- Estimate car loan customer’s risk

- Make phone call to new customer

- Create new customer’s profile, update current customer’s profile

- Go out to meet customers with my tutorFrom 13h00

To 17h30

(sometime

later)

- Support others credit officers in their home loan business

- Contact with car dealers and potential home loan customer

- Meet current customer and / or new customer

- Participate in team-building activities

- Meet customer at Showrooms, car fairs to understand car’sinformation

In 1 working day I was assigned many different jobs in different fields However, Ispent a lot of time focusing on the subject of my topic, especially car loan products and theprocess of doing it

Mission 1: Apply Consumer credit score model

One of my daily tasks is to evaluate the customer Before accepting or reviewing the terms of the contract, I must ensure that the customer is eligible for a loan and a loan within the limits set by the bank.

Important factors related to customers using the credit scoring model include: Credit rating, age, asset status, dependency, home ownership, fixed line telephone, credit Personal details, working time these factors will help me and the bank can accurately assess the customer through and decide the appropriate level of loan