Abstract of Doctoral thesis: Quality of financial- banking services in the commercial banks of Vietnam be an important contribution to the commercial banks of Vietnam in improving the service quality to increase competitive advantage in the financial market.
Trang 1MINISTRY OF EDUCATION AND TRAINING THE TSTATE BANK OF
VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY
-oo0oo -
NGUYEN THANH CONG
DEVELOPMENT OF FINANCIAL - BANKING SERVICES IN THE COMMERCIAL
BANKS OF VIETNAM
SUBJECT OF RESEARCH STUDENT
Major: Economics - Finance - Banking
Code: 62 31 12 01 Course: 14
Science instructors:
Instructor 1: DR TRINH QUOC TRUNG
Instructor 2: DR.PHANNGOC MINH
MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM
BANKING UNIVERSITY OF HO CHI MINH CITY
-oo0oo -
NGUYEN THANH CONG
QUALITY OF FINANCIAL - BANKING SERVICES
IN THE COMMERCIAL BANKS OF VIETNAM
ABSTRACT OF DOCTORAL THESIS
Major: Finance - Banking Code: 62 31 12 01 Course: 14
Trang 3CHAPTER 1 INTRODUCTION 1.1 THE URGENCY OF SUBJECT
Along with the global economic integration trend, financial - banking sector of Vietnam has made striking changes, commercial banks have quickly get access to the modern business models, advanced banking technologies, new experience and management methods
of the developed countries, etc., Besides valuable opportunities; however,Vietnam's commercial banks also have met many difficulties and challenges, especially since Vietnam officially became a member of WTO and signed bilateral trade agreements with the United States, Japan, etc whichhas created enormous pressure for domestic banking system According to the roadmap, many foreign credit institutions will join Vietnam's financial market while many barriers, regulations restricting activities of the foreign banks by the Government will gradually be removed These require domestic banks to innovate operation methods, improve quality of service to be able to adapt to the new situation
In Vietnam, although there have been many studies about service quality in many different areas anddifferent levels; general results of these studies still exist certain drawbacks For exclusive studies about the banking sector, the authors tend to focus on evaluating service quality of some specific types of services such as: electronic banking, credit, international payment, retail banking, etc., in a particular bank; hence, the results cannot perform panoramic features about service quality of the finance - banking sector in Vietnam market Besides, commercial banks in Vietnam have conducted various surveys and preliminary evaluation of service quality for some types of services; however, these surveys have not demonstrated quantitativeness in an scientific way which leads to ineffective and non-integrated implementation of advanced methodsfor service quality improvement in banks Therefore, in order to demonstrate general current status of service quality in the entire commercial bank system of Vietnam in the current period undera fundamental and and scientific foundation, the author chooses the subject "Quality of financial- banking services in the commercial banks
of Vietnam" The research results can be an important contribution to the commercial banks
of Vietnam in improving the service quality to increase competitive advantage in the financial market
1.2 OBJECTIVES
As mentioned on the critical nature of the service quality of credit institutions in the financial market, the thesis mainly focuses on the quality of financial- banking services in the commercial banks of Vietnamwith the following objectives:
- Build a system of scales and models measuring the quality of financial- banking services
in the commercial banks of Vietnam
- Measure, evaluate the quality of financial- banking services in the commercial banks of Vietnam and compare differences in service quality perception among commercial bank groups
- Inspect impacts of any factors on the service qualityand service quality itself on satisfaction of customers' needs, and then compare differences in service quality perception among customers by gender, age, income and education level
Trang 4- Propose policy implications to improve the quality of financial- banking services in the commercial banks of Vietnam
To accomplish the above objectives, the thesis is designed to address the following questions:
- Which factors should Vietnam's commercial banks consider when evaluating the service quality?
- How is quality of financial- banking services in the commercial banks of Vietnam measured?
- Are there any differences in customers' service quality perception towards commercial bank groups and among groups of customers?
- Does service quality affect the satisfaction of customers' needs?
- Which issues must be improved to be able to maintain a long-term commitment of customers to the banks as well as contribute to improve competitiveness of the financial market ?
1.3 RESEARCH SUBJECT AND SCOPE
- Research subject: Quality of financial- banking services in the commercial banks of Vietnam
- Research scope:
+ Regarding to contents: This thesis mainly studies issues related to the banking sector
in Vietnam's commercial banks; factors affecting the service quality; its situation in Vietnam's commercial banks in the current period through surveys of domestic customers; impact level of factors on the service quality and the service quality itself to the customers' satisfaction; and comparison of differences in service quality perception among customers
+ Regarding to research space: To ensure representativeness of research samples in a comprehensive review of the service quality of financial- banking sector in Vietnam's commercial banks, data are collected from surveys of customers who use financial - banking services in Vietnam's commercial banks in big cities
+ Regarding to research time: Data of research are obtained from business results of the entire banking system in Vietnam from 2009 to 2014 and the surveys of customers about the financial - banking service quality during the period from June 2014 to September 2014
1.4 RESEARCH METHODS
The methods to be applied in the thesis are as follows:
- Qualitative research, a method of in-depth interview techniques for experts in the financial
- banking sector and customers using the bank's services
- Quantitative research,a method of surveying customers' feedbacks through detailed questionnaires
Trang 51.5 SCIENTIFIC AND PRACTICAL MENANINGS
The research "Quality of financial - banking services in the commercial banks of Vietnam" represents significantly scientific and practical meanings as follows:
- Scientifically, the research results contribute theoretical basis about the service quality, the system of scales and measurement models of financial - banking service quality into the source of theoretical research on relevant issues
- Practically, the research results help managers obtain an overview on the current status of service quality in commercial banks of Vietnam, identify possible factors affecting the service quality, thereby, identify the targeted directions in the formulation of appropriate policies in order to maintain the customer's long-term commitment to the banks as well as improve competitive advantage in the financial market
1.6 NEW CONTRIBUTIONS OF THE THESIS
It can be seen from the research results that the thesishas the following new contributions:
- Develop a system of scales and models of measuring quality of service with clearly scientific grounds, reaching reliability and allowable values, in accordance with the context of researching and evaluating financial - banking service quality in the commercial banks Especially, the research results of this thesis have been expressed in the extensive research trends From the 5 – component SERVQUAL model of Parasuraman (1985), the theoretical model of this thesis is adjusted further factor to match with the context of market and customers psychology in Vietnam that the previous research works of the authors could not show clearly
- In addition to measuring and evaluating service quality, testing impacts of factors on the services quality and the satisfaction of customers' needs, the research results also compare differences in service quality perception among commercial banks, among customer groups by gender, age, income and education level
- From the research results of this thesis, eight policy implications which the commercial banks of Vietnam need to focus to are recommended to enhance the quality of financial - banking services
1.7 STRUCTURE OF THE THESIS
Apart from the list of tables, charts, figures, references, the thesis is broken down into
5 chapters as follows:
Chapter 1: Introduction
Chapter 2: Theoretical basis of quality of financial - banking services
Chapter 3: Research methods and models measuring quality of financial - banking services in Vietnam's commercial banks
Chapter 4: Research results of measuring quality of financial - banking services in Vietnam's commercial banks
Chapter 5: Conclusion and policy implications for improving quality of financial - banking services in Vietnam's commercial banks
Trang 6CHAPTER 2 THEORETICAL BASIS OF QUALITY OF FINANCIAL - BANKING SERVICES 2.1 DEFINITION OF SERVICE
Services are a variety of activities intended to meet human needs They are featured by non-existence in specific product types (tangible) such as goods, inseparability from the origin, quality instability, inability to be preserved, etc., but direct serving certain needs of society
2.2 FINANCIAL- BANKING SERVICES
2.2.1 Concept of financial- banking services
Financial - banking services are the entire intermediary activities in terms of monetary, credit, payments, foreign exchange, etc., of banks in order to meet the needs of customers and provide the best source of profit for the banks
2.2.2 Features of financial- banking services
From the concept mentioned above, it can be seen that the financial- banking services differ with conventional commodities in term of its nature According to Trinh Quoc Trung (2009, p.330), the financial - banking services have two basic characteristics deciding the entire process of formation, supply, management and exploitation of products and services as follows:
- By comparing service attributes of banking products to those of industrial products, the former expresses its invisibility, heterogeneity, lump-sum, inseparability between the production and consumption and inability to be reserved like the latter Depending on the type of products and services that the above-mentioned elements are combined in a proportionate manner
- In term of financial attributes, the former is expressed by privacy, confidentiality and sensitivity of information related to financial aspect of any individuals or organizations Financial attributes are considered one of the largest obstacles or barriers for providers of banking services in the process of formation, supply, exploitation and product management
2.2.3 Types of financial - bankingservices
2.2.3.1 Funds generation
Funds generation is either basic types of services of commercial banks aimed at creating business capital for banks By this service, commercial banks use different tools and methods to mobilize idle money from individuals and entities in the economy to meet the borrowing requirements of the economy This service is expressed in the following forms: + Deposit service, including: Term deposit, payment deposit, resident savings deposit, demand deposit, time deposit, deposit services of other banks
- Issuance of valuable documents to raise capital
+ Other services, including: Borrowings from the State (State Bank of Vietnam), loans to
Trang 72.2.3.2 Funds utilization
From funds mobilized from organizations and individuals in the economy, the commercial banks provide different types of lending services, bank guarantee, financial leasing and other lending forms to contribute to revenues and profitsfor the banks as well as promote economic development Where:
+ Direct lending includes: Real estate lending, consumer lending, agricultural lending, import and export loans
+ Indirect lending includes: Discount of valuable papers, factoring
+ Bank guarantee: Borrowing guarantee, Bid security, Performance guarantee, Work quality guarantee, Payment guarantee, Financial leasing
+ Other forms of lending
2.2.3.3 Charged services
- Forex trading service
- Domestic and international payment service
- Electronic banking service, including: Internet banking, Home banking, Mobile banking, Phone banking, SMS Banking, VnTopUp…
- Treasury service
- Other charged services, such as: asset safe-keeping; safe rental; card payment acceptance; balance confirmation to prove financial capacity; brokerage for securities investment, real estate; debt trading, etc.,
2.2.3.4 Mixed services
Mixed services is the one to combine multiple different utility functions or some types
of services mentioned above to increase convenience for customers when using financial - banking services Common mixed services provided by the commercial banks to customers in the current financial market include card service and insurance link
- Card service, including:domestic card and international card
- Bank insurance model (Bancassurance)
2.3 QUALITY OF FINANCIAL - BANKING SERVICES
2.3.1 Concept of quality of financial - banking services
Quality of financial - banking services is the difference between expectations and perception by customers when using services provided by the banks
2.3.2 Roles of service quality for banking operations
2.3.2.1 Enhance competitive advantage for banks
2.3.2.2 Strengthen collaborative links among organizations both at home and abroad
2.3.2.3 Promote diversification of types of products and services
2.3.2.4 Attract and retain customers
2.3.2.5 Consolidate position and enhance brand reputation for the banks
2.3.3 Relationship between the service quality and satisfaction of customers' needs
Trang 8Service quality is one factor greatly affecting the satisfaction of customers' needs If the banks provide customers with products and services of high quality and satisfy their needs, these banks are considered initially making customers happy Therefore, the banks are highly recommend to enhance service quality at first to enhance the satisfaction of customers' needs,
In other words, service quality and satisfaction of customers' needs have close relationships with each other, in which the former is created at first and decides on the satisfaction of customers' needs Although the service quality is determined by many factors, it is one important source, the thing to be created at first and then decides on meeting the needs of customers
2.3.4 Factors affecting the quality of financial - bankingservices
2.3.4.1 External factors
- Economic environment
- Political and legal environment
- Social, cultural, demographic and geographical environment
- Demand and tastes of customers
- Globalization and level of competition among banks
2.3.4.2 Internal factors
- Financial capability
- Facilities
- Network operation
- Level of banking technology investment
- Marketing strategies and communications
- Policies on customers
- Quality of human resources
2.4 CRITERIA FOR MEASURING QUALITY OF FINANCIAL - BANKING SERVICES
From the '80s to the present, the researchers Grönroos (1984), Parasuraman & CTG (1985, 1988), Cronin & Taylor (1992), have launched research models and measurement criteria of service quality under different approaches from previous ones, which creates extended premise to studypractical issues related to the service quality
Based on the model of service quality measurement by Grönroos (1984), Parasuraman (1988) built and developed SERVQUAL model which consists of 5 criteria: (1) tangibles, (2) reliability, (3) responsiveness, (4) assurance, (5) empathy with 22 observes variables to measure the service quality as follows :
Trang 9Table 2.1 Measurement criteria of SERVQUAL model Criteria of
service quality
measurement
Description
Reliability Measure the ability to perform service appropriately and on time
at the first time
Responsiveness Measure the desire and readiness of personnel in providing
timely service to customers
Assurance Measure qualification and service styles of being polite and
affable with customers
Empathy Measure care to each individual customer
Tangibles Measure appearance, outfits of service personnel, equipment,
materials, facilities to render services
Source: Parasuraman & ctg (1988) Although SERVQUAL model hasbeen used by many researchers to measure service quality in many different areassuch as: restaurants, hotels, telecommunications, hotels, supermarkets, schools, finance - banks, etc., they have not still get the entire consensus from many researchers Cronin&Taylor (1992, 1994), Teas (1993), Haywood- Farmer (1988), Philip&Hazlet t(1997) Cronin & Taylor (1992) suggested that service quality is a form of customers' attitude and perspective, the premise ofsatisfaction and meaning for purchase intentions of customers Customers do not purchase services of the highest quality but purchase on the basis of an evaluating the services' value; hence, the evaluation and measurement is best based on the perception quality without any expectations quality of customers and then the author proposes SERVPERF model to measure the serice quality
Thus, it can be seen from an examination of the measurement models mentioned above that none of models is thoroughly accepted by the researchers and none of general definition is completely recognized regarding to measurement activities of serice quality However, in the measurement models, SERVQUAL as proposed by Parasuraman & ctg (1988) has been received much support from many researchers such as Akan (1995), Avkiran (1994), Babakus
& Mangold ( 1992), Bojanic (1991), Carman (1990), Johns & Tyas (1996), Saleh & Ryan (1991),etc., and most of them supported the view that the measurement and evaluation of serice quality should be implemented on the basis of comparing any difference between perception quality and expectations of consumers when using services
Therefore, starting from viewpoints of service quality of researchers around the world
as well as limitations of research work of local authors, within the research scope of this thesis, the author suggest using 5 measurement criteria of SERVQUAL model to measure financial- banking service quality in Vietnam's commercial banks However, the application of these criteria need additional adjustments, by adding or removing certain criteria, etc., to fit the cultural context and behaviors of customers in Vietnam
Trang 10CHAPTER 3 RESEARCH METHODS AND MODEL MEASURING QUALITY OF FINANCIAL - BANKING SERVICES
IN VIETNAM’S COMMERCIAL BANKS 3.1 RESEARCH METHOD
Figure 3.1: Research process
Source: References from Churchill (1979)
Complete scale
Draft scale
Adjusted scale (1 st time)
Adjusted scale (2ndtime)
Adjusted scale (3rdtime)
Trang 11Implementation process to research on service quality of financial - banking in Vietnam's commercial banks includes two steps, namely a preliminary study and formal study
In particular, preliminary study is conducted through the qualitative and quantitative methods Qualitative preliminary study is carried out in-depth interviews with experts and customers who are using financial- banking services to discover, add and adjust the factors and observed variables to measure the research concepts Quantitative preliminary study is done through technical analysis of Cronbach's Alpha, EFA, and CFA aiming to conduct preliminary assessment of scales and test the suitability of measurement models of service quality with market data
Official research is done by quantitative research method based on preliminary research results The research is conducted to measure the quality of financial- banking services in Vietnam's commercial banks as well as test the research models with hypotheses and then compare any differences in the models among customers
Research process offinancial- banking service quality in Vietnam's commercial banks
is shown in detail through the following steps (see Figure 3.1)
3.2 MODEL FOR MEASURING QUALITY OF FINANCIAL - BANKING SERVICES
Based on the 5 - distance measurement model of Parasuraman (1984), the measurement model offinance - banking service quality in Vietnam's commercial banks is developed through in-depth interviews with experts and customers using banking services
In-depth interview process is conducted through interviewing 25 people 12 out of 25 people mentioned above are professionals who work on teaching, studying financial- banking sector in the universities and senior financial managers being in charge of directly operating and managing business operations in Vietnam's commercial banks based in big cities of Ho Chi Minh City area, Southeast region, Central region, Western region and Northern region; the remaining 13 customers are those who uses services at the commercial banks of Vietnam
It can be seen from the in-depth interview results that in order to measure financial - banking service qualityin Vietnam's commercial banks, in addition to the 5 factors: (1) tangibles; (2) reliability; (3) assurance; (4) responsiveness; (5) empathy from the SERVQUAL model, it is necessary to add the factor named "Access" Experts and customers interviewed said that customers in Vietnam's market feel satisfied if their desired needs are met In addition
to the issues related to service providers, infrastructure, equipment, the bank needs to facilitatecustomers to get access to services such as banking products and services in some ways such as diverse productswith many choices, competitive pricing policy, simple conditions of use, extensive popularity of information of products and services to customers, widespread transaction network, convenient place and time of transactions for customers, etc., Compared with domestic work previously, it can be realized that the research models of authors mainly focused on studying and evaluating issues related to staffs, infrastructure conditions on the basis of five factors from SERVQUAL rather than take into consideration extended study to other factors, such as "Access"in the measurement and evaluation of service quality in Vietnam's commercial banks Thus, from the original model SERVQUAL of 5 factors, the author adds one factor "Access" and suggests VBSQ measurement model (Vietnam Banking Service Quality) of 6 factors: (1) tangibles; (2) reliability; (3) assurance; (4) responsiveness; (5) empathy; (6) access to perform measurements of the financial - banking service quality in Vietnam's commercial banks In particular, the factor "Access" is
Trang 12used to measure banking problems to create favorable conditions for customers to get access banking services
Besides, in order to test the impact level of service quality on the satisfaction of customers' needs in Vietnam's commercial banks, the author proposes one factor "satisfaction
of the customers' needs" to the VBSQ model (see Figure 3.2)
Figure 3.2: Model for measuring quality of financial - bankingservices
(Source: Additional correction from SERVQUAL model of Parasuraman, 1985) 3.3 MEASUREMENT SCALES OF QUALITY OF FINANCIAL - BANKING
SERVICES
From the results of in-depth interviews as well, the author conducts addition of measurement scales or appropriate criteria to the context of the financial market of Vietnam From 5 criteria of the original SERVQUAL model and another added criterion named
"Access" together with 41 original observed variables (including 37 observed variables under
5 measurement criteria and 4 observed variables under the satisfaction criterion), it is shortened to 35 observed variables due to coincidence in the evaluation meanings of a number
of variables, including 36 observed variables under 6 measurement criteria and 4 observed variables under the satisfaction of customers' needs
3.4 PRELIMINARY EVALUATION OF MEASUREMENT SCALES
3.4.1 Analysis of scale reliability
It is indicated from the analysis results of Cronbach's Alpha that all factors of VBSQ model are larger than 0.7; in other words, it is able to conclude that the scales of the factors achieve its sufficient reliability (Hair & cgt, 1998) Therefore, it can be seen from the results
of the analysis that all the observed variables of 6 factors for service quality measurement are appropriate to the analysis of EFA in the next step
Service quality
Access
Trang 133.4.2 Exploratory factor analysis (EFA)
It is indicated from EFA analysis that the original VBSQ model consisting of 6 factors
is adjusted to 4 factors affecting service quality: (1) Staffs; (2) Access; (3) Tangibles; (4) Reliability and other 2 dependent factors calling service quality and "satisfaction of customers' needs." At the same time, testing results also show that the observed variables in these factors are correlated with each other andEFA analysis is suitable
3.5 TESTING OF SERVICE QUALITY MEASUREMENT SCALES OF FINANCE - BANKING SERVICES IN VIETNAM’S COMMERCIAL BANKS
Although the results of EFA analysis extracts 4 factors, the author continues to perform testing of measurement scales by CFA analysis through AMOS software to test consistency level with market data of service quality measurement model
It is stated by the testing results that Chi-square/df = 1.997 <3 (Hair & CTG, 1998); GFI = 940 3, TLI = 0.968, CFI = 0.972 which are greater than 0.9 (Bentler & Bonett, 1980); and RMSEA = 0.42 <0.5 (Steiger, 1990) This can be concluded that the measurement model VBSQ fit the data market although 3 factors: staff, tangibles and reliability do not achieve unitary nature due to the correlation among the errors (e1 ↔ e4, e14 ↔ e15, e21 ↔ e22) of some observed variables under the three factors mentioned above
In term of factor loading of the observed variables, the CFA analysis results show that the factor loading is greater than 0.5 and statistically significant (P value = 0.000 <0.05); so, the scales are reaching a convergence value At the same time, the correlation coefficient among 4 factors in the measurement model VBSQ are less than 1 and statistically significant (P value = 0.000 <0.05), so, all of them reach a distinguishing value
Thus, it can be shown from the analysis results of preliminary assessment that the scale measurement tool forfinancial - banking service quality in Vietnam's commercial banks include 4 factors: (1) staff; (2) access; (3) tangibles; (4) reliability (see Figure 3.3) Implementation process of service quality measurement is performed on the basis of distance value between the perception (P) and expectation (E) of the customers for four factors when using banking services
Figure 3.3: Experimental model of service quality measurement
Service quality Tangibles
Reliability
Staffs
Satisfaction of customers' needs Access
Trang 14CHAPTER 4 RESEARCH RESULTS OF MEASURING QUALITY OF FINANCIAL - BANKING SERVICES
IN VIETNAM’S COMMERCIAL BANKS 4.1 OVERVIEW OF RENDERRING FINANCIAL - BANKING SERVICES OF COMMERCIAL BANKS IN VIETNAM
4.1.1 Funds generation
Previously, fund generation services of Vietnam banking system was mainly expressed
in the form of basic types of services to meet the essential needs of the customers; however, at the present time, with the increasingly high pressure of competition amongbanks along with expansion activities of commercial banks in Vietnam, this service is developing continuously and diversely in terms of both breadth and depth
Therefore, from the constant development of the funds generation groups, sales of economy mobilization in the period of 2009 - 2014 has continuously grown over the years
Table 4.1 Total sales of economy mobilization in the period of 2009 - 2014
Forex trading service
In recent years, along with the trend in the global economy, foreign exchange operations of the commercial banks in Vietnam have had many positive changes In addition
to traditional forex trading services such as the exchange and sale of foreign currency to meet the needs of domestic and international customers or repayment, etc.,some commercial banks
in Vietnam such as BIDV, Vietcombank, Eximbank, ACB, Sacombank, Techcombank, etc.,
Trang 15begin expanding some type of modern forex trading services such asspot foreign currency sales and purchase and term foreign currency sales and purchase, foreign currency swap, foreign currency option, remittance payment and foreign currency exchange and constantly expand network of banking partners in the international market
In term of the remittance payment service, in order to meet the demands of customers, Vietnam's commercial banks have increased cooperation with organizations around the world
to deploy multiple channels of remittance with richness and diversity form of money transfer systems such as Western Union, MoneyGram, MoneyTrans, IME, Express money, Chinatrust, etc., Especially, since 2003, the State bank of Vietnam has allowed the commercial banks to establish more remittance companies of legal status and independent accounting with its own capital to the expanded branch networks which have created more favorable conditions for customers to receive remittances
Domestic payment services
Since non-cash payment policies issued by the government and the State bank of Vietnam was implemented, in particular in accordance with Directive 20/2007/CT-TTg dated August 24 2007 of the Prime Minister on the paid subjects from the state budget, domestic payment services by banks have developed relatively stably, met the needs of users, economy and in line with the trend of international integration, accuracy, safety and security
Besides, a new payment method has emerged and been commonly applied in Vietnam since late 2008 as e-wallet
In a nutshell, it is shown from the non - cash payment service deployment process to customers under the Government's policy to date that activities of non-cash payments have had many positive changes, met payment needs of the economy The proportion using cash over total payment method decreased gradually over the year, from 21.5% in 2009 decreased
Source: Synthesis of the State bank of Vietnam's annual report, BVSC
International payment services
In recent years, the development of Vietnam's foreign trade has created favorable conditions for the development of international payment services of banks In addition to the traditional types of service, the commercial banks in Vietnam continuously promote diverse activities of international payment services Up to now, these types of international payment services in the banking system have been generally quite sufficient to meet the needs of economic development in the trend of integration as well as the needs of people in international payment activities
Moreover, by following the guidelines of the State Bank of Vietnam on the growth of credit activity on loans to finance export and import for import-export enterprises, some positive impacts on sales growth of international payments have been achieved
Trang 16Table 4.4 International payment turn over of commercial banks in the period of 2009-
In addition, the commercial banks extend cooperation or affiliation with the third parties such as VietUnion, Payoo, China Union Pay, etc., to deploy the electronic banking services with the aims ofminimizing investment costs, increasing competitiveness, utility in the improvement of quality service, supporting the banks to ease the implementation of payment via paper payment documents, create convenience for customers such as: Direct Billing, Vn TopUp, ATransfer, VnMart, APayBill, Payoo, etc.,
Treasury services and other types of charged services
Besides the benefits of various types of electronic banking services for customers above, Vietnam's commercial banks are also constantly developing and expanding types of cash services by making practical services to meet increasing needs of people such as payment and collection on behalf at the request of customers, gold or valuable papers keeping service, tallying service, money exchange service for other denominations, foreign currency exchange, testing counterfeit and real money, etc.,
Looking at business results of treasury services and other types of other charged services, sales
in the period of 2010 - 2014 tended to increase, particularly in 2012, due to Vietnam's financial - banking market is in a time of unrest with many difficulties; thus, sales of most of the banks tended to decrease In case of comparing sales among banks, commercial banks under the state's commercial bank block have higher sales higher than that of commercial banks under non-state's commercial bank block For the former block, Vietinbank has the highest sales level compared to other banks within the block while Sacombank has the highest sales over the years compared to other non-state's commercial banks