Improving car loans service for individual customer of BIDV thang long branch (2)

CHAPTER I: OVERVIEW OF BIDV, THĂNG LONG BRANCH AND THE INTERNSHIP 1.1 Overview of BIDV: Full name: Joint Stock Commercial Bank for Investment and Development of Vietnam Slogan: Sharin

Joint Stock Commercial Bank for Investment and Development of Vietnam

Professional bachelor degree in Finance-Banking

Mr Sebastien DAMART

Tutor at BIDV: Mr DAO Xuan-Phong

Hanoi – 2018

There's no success without support which is even more or less, direct and indirect During my time here, I have received a lot of teachers' concern and help I would like to send my sincere thanks to all teachers of International Training Faculty of Thuong Mai University and experts from ROUEN University who have enthusiastically conveyed their knowledge during the past 4 years Specifically, in this final year, the faculty has held for us courses with foreign experts, which helped us approach useful subjects for our job in the future I am grateful for teachers' instructions from lessons, talkshows and discussions about banking and your facilitation for us to have chance to learn and experience real working environment in

and assisted me to deal with difficulties during my internship with useful advice This was a great experience in banking environment which broaden

my view and knowledge about future opportunities.

To sum up, I wish you all teachers at the International Training Falcuty

at Thuong Mai University and at ROUEN University health and happiness to continue your mission as inspirers.

TABLE OF CONTENTS

INTRODUCTION 1

CHAPTER I: OVERVIEW OF BIDV, THĂNG LONG BRANCH AND THE INTERNSHIP 2

1.1 Overview of BIDV: 2

1.2 Overview of BIDV- Thang Long Branch: 2

1.3 Introduction of my internship: 3

1.3.1 The reason for choosing the topic 3

1.3.2 Internship plan 4

CHAPTER II: INTERNSHIP IMPLEMENTATION AT BIDV, THĂNG LONG BRANCH

6 2.1 The internship position, responsibilities and tasks 6

2.1.1 Internship position and responsibilities 6

2.1.2 Daily task 7

2.2 Overview of car loan at Thang Long branch 8

2.2.1 Process of car loan 8

2.2.2 The Car loan service of BIDV- Thang Long branch 9

2.2.3 Car loan packages: 9

2.3 The reality of car purchasing at the branch 10

2.4 Some business cases 11

2.4.1 The 1st case ( Failed) 11

2.4.2 The 2nd case ( Failed ) 11

2.4.3 The 3rd case ( Successful) 12

2.4.4 The 4th case ( Successful) 12

2.4.5 The 5th case ( Successful) 12

2.5 Competitors Analysis 13

2.6 PEST 14

2.7 SWOT analysis 15

2.7.1 SWOT 15

2.7.2 Proposal 16

2.8 KPI and KPR 17

2.8.1 Key performance indicator – KPI 17

2.8.2 Key performance results – KPR 17

CHAPTER III: INTERNSHIP ASSESSMENT 19

3.1 Difficult 19

3.2 Internship gained 19

3.3 Future plan 20

CONCLUSION 21

LIST TABLE

Table 1.My internship schedule 4

Table 2 Daily task 7

Table 3 Process of car loan 8

Table 4 Business results 10

Table 5.Comparing BIDV with competitors 13

Table 6 SWOT 16

Table 7 Monthly KPI's customer relationship staff 17

Table 8 my commercial result 17

Table 9 Career plan 20

LIST FIGURE Figure 1 Structure of BIDV- Thang Long Branch 3

Figure 2 The structure of the department and My position 6

Figure 3 Car loan packages 9

LIST PICTURE Picture 1 Thang Long branch 3

Picture 2 Transaction at Thang Long branch 3

LIST OFABBREVIATED NAME

ASEAN Association of Southeast Asian Nations

ATM Automated teller machine

BIDV Joint Stock Commercial Bank for Investment and Development

of Vietnam

SBV State Bank of Vietnam

Vietcombank Joint Stock Commercial Bank for Foreign Trade of Vietnam Vietinbank Vietnam joint stock commercial bank for industry and tradeTechcombank Vietnam Technological and Commercial Joint- stock Bank

Sacombank Saigon Thuong Tin Commercial Joint Stock Bank

SHB Saigon – Hanoi Commercial Joint Stock Bank

USD United Stated Dollar

USTV University Of Toulon-Var

TMU Thuong Mai University

Thuong Mai University and ROUEN University facilitated students to take part inbanking environment before finish this course with the aim of establish the vocationalawareness for students Having the opportunity to get acquainted with the real workingenvironment at the bank, I applied for a position as a salesman - an important part of thebank Fulfilling the duties of a salesman plays an important role in bank development.During my internship at BIDV Bank - Thang Long Branch, I have set for myself thefollowing targets:

- Targets 1: Try to apply learnt theories to real work

- Target 2: Understand the operation of the bank, duties of a salesman, how tocommunicate with customers, how to solve the problems

- Target 3: Try to deal with challenges and keep learning and studying

- Target 4: Build up good relationship with bank's employees and open otherrelationships

- Target 5: Improving the skills and knowledge ready to become a banker

In time internship, I have accumulated a lot of knowledge from difficulties i hadbeen through

Those experiences will be stated in the following report

CHAPTER I: OVERVIEW OF BIDV, THĂNG LONG BRANCH

AND THE INTERNSHIP

1.1 Overview of BIDV:

Full name: Joint Stock Commercial Bank for Investment and Development of Vietnam

Slogan: Sharing opportunities, cooperating successfully

 Head-Office: BIDV tower, 35 Hang Voi Street, Hoan Kiem District, Ha Noi

Foundation day: 26 /4/1957

 Employees: 25.000 staff (2016)

System of BIDV: 190 branch and 815 Transaction Office, 1.824 ATM in Vietnam

Total assets : VND 1.176.000 Billion( 2017)

 Activities: Banking, insurance, securities, financial investment

Services:

+ Individual Customers: Deposits – Savings, Personal loan, E-Banking

+ Corporate Customers: Loans & Guarantees, Trade finance, Deposits

+ Financial Institutions: Global Markets, Banking services, Deposits

- Target: BIDV will constantly innovate and develop to become one of the top 20banks in Southeast Asia by 2030

- Competitors : Vietcombank, Vietinbank, Techcombank,…

1.2 Overview of BIDV- Thang Long Branch:

 Location : 8 Pham Hung Street, Dich Vong Hau Ward, Cau Giay District, Hanoi

Employees: 140 staff ( 2016)

 Founded on: 2/4/1991

Services:

+ Individual Customers: Deposits – Savings, Personal loan, E-Banking

+ Corporate Customers: Loans & Guarantees, Trade finance, Deposits

+ Financial Institutions: Global Markets, Banking services, Deposits

• Targets: Complete the targets, Become the excelent branch of BIDV

• Competitors: Vietcomabank, Vietinbank, Techcombank, Sacombank , SHB,…

Organization structure

Figure 1 Structure of BIDV- Thang Long Branch

(Source: BIDV-Human resource management

Department)

Picture 1 Thang Long branch

(Source: BIDV- Thang Long branch)

Picture 2 Transaction at Thang Long branch

(Source: BIDV- Thang Long branch)

1.3 Introduction of my internship:

1.3.1 The reason for choosing the topic

With this current growth momentum of the world economy, Vietnam has also

Risk management deptAppraisal dept

Operation block

Device management dept

Currency and Fund management dept

Internal manament block

Economy Dept

Finance-Planning and Finance Dept

Human resource management

General planning dept

Affiliation block

Transaction offices

gradually developed remarkably in all aspects of social life People income areincreasingly improved This leads to higher demand for life standard However, incomparison with some products such as cars, Vietnamese income seemed not to be highenough to afford them

Therefore, banks becomes trust-worthy friends sharing financial problems withthem

In the last quarter of 2017, Vietnam government decided to cut down import andconsumer levy of many products, especially, the levy on imported cars from ASEANcountries with car's gears' down to 0% For example, a car imported before 1/1/2018,valued at $ 10,000, will have selling price of more than $ 20,000 (including: Price of car

is taxable when exported + import tax + special excise tax + value added tax)

But from 1/1/2018, the car value after tax is about $ 15,000 because import tax of0% Thus, the price of cars reduced about $ 5,000, equivalent to more than 100 millionVND So 1/1/2018, Vietnam's car market will change positively Seeing the developmentopportunities of the car market, many banks have stepped up the development of carloan service, supporting the needs of customers BIDV also can see the potentials of thismarket so that they focus on car loan service

Previously, BIDV have not been developed Car loan But now, car loan is potentialproducts that BIDV wants to develop in 2018 so I want to research and make acontribution to the development of loan products

1.3.2 Internship plan

Table 1.My internship schedule

Week 1-4

(26/2-

23/3)

- Learn about BIDV services

- Learn about salesmen's responsibility

- Choose car loan service for studying andservice development

- Learn about loaning process

- Learn methods to approach customer,

to face-to-face communicate and via phone from the experienced staff

- Use telephone directory to start consulting with some acquaintances

- Assist tutor in meeting customer

- Assist tutor in input the old data into management system of the bank

- Knowing clearly activities

- Learn how to advise customers from tutor

- Finish the learning processfrom the tutor

Week 5

( 26-30/3)

- Finding customers by phone from provided list

bank Meet scheduled customers with tutor

- helping tutor create the records for

- Enough knowledge of car product to advise customers

- Can work independently

- Assist customers open credit card

- Get answers from the tutorand improving

communication skill

- opening 2 credit card

- advising successful for onecustomer at the showroom

- opening a master card

- Call successful 2 customers,

- research competitors

Week 8-11

(16/4-11/5)

- Meeting customers with tutor

- Transfer the loan profile of customers

to the appraise dept

- Consult customers at Showroom

- Check for record appraisal results, inform customers their loan agree or not

- Accomplishment the records for successfully consulted customers

- Make phone calls with customers from bank's provided list

- Monday, Tuesday (30/4-1/5): days off (International Labour Day)

- Complete papers and records, hand over April tasks to instructor

- opening credit card for customer

- Help the tutor entering the data into bank's system

- Do research on lending market

- Opening 5 credit card and

- Consult customers at Showroom

- Help the old employees entering the data into bank's system

- Meet customers with the tutor

- Make phone calls to seek for customers

- complete all the documents, send back

- Successful advise for 1 customer at showroom

- open saving account

- Geting data at the bank andstarting write report

to the instructor

- presenting the internship report to

manager and confirming the internship

- Complete my internship

CHAPTER II: INTERNSHIP IMPLEMENTATION AT BIDV,

THĂNG LONG BRANCH 2.1 The internship position, responsibilities and tasks

2.1.1 Internship position and responsibilities

- I was a salesmen at the transaction office under control of Thang Long branch.After a month of training at the main branch, the branch manager assigned me tosupport team 2 (individual customer relationship) at Lang quoc te Thang Longtransaction office

- My position is clearly stated in the chart:

Figure 2 The structure of the department and My position

(Source: BIDV- Thang Long branch)

- Responsibility: My duties partly was acting as a consultant about car loanservice at individual customer department and supportting my tutor complete his work.Individual relationship department includes 2 departments are individual customerteam and enterprise customer team Individual customer team have 6 teams and I was

in the team number 2 in Lang quoc te Thang Long transaction official

- I was instructed by the instructor to understand all the loan packages, whichassists each client's needs in accordance with financial capacity

Customer relationship department

Customer relationship department

Customer relationship individual department

Customer relationship individual department

team 1 team 2team 2

DAO xuan phong

me

team 3team 3 team 4

Customer relationship enterprise departmentCustomer relationship enterprise department

- After clearly knowing car loan product, I was able to meet some of mycustomers who were in need, and I was confident in the way doing some tasks regarding

my research topic - car loan service:

+ Seek for customers who want to use the car loan service of the bank

+ Contact customers, based on the needs of customers and the ability to providefinancial along with the rules of the bank I will advise clients on the conditions,necessary papers and interest rates

+ Appraisal report in accordance with the bank's procedures and submit to othermanagement levels of loan approval or loan refusal

+ Draw up credit contracts, collateral contract and related papers

+ Keep track and create disbursement records according to customer'requirement

- Helping tutor prepare loaning record

- finding customers by phone from bank-provided list

- advising customers at showroof huyndai

- assist customers open credit card, debit card, saving account

- check for record appraisal results, inform customers their loan agree or not

- Afternoon ( 1.00 pm – 5.00

pm )

- Meet scheduled customers with tutor

- Helping tutor Check the record of customers

- Helping tutor create the records for agree customers

- Call customers who Not enough loan document

- Assist tutor in input the old data into management system of the bank

- Transfer the loan profile of customers to the appraise dept at main branch

2.2 Overview of car loan at Thang Long branch

2.2.1 Process of car loan

Table 3 Process of car loan

Steps Departmentresponsible My ( and my team's ) duties

1 Finding

customer Customer relationship

individual department

Method looking for customers

- Making call with the potential customer list from the bank

- Advise customers at car showroom that linked with the bank,

- Referral from friends or old customers

- Clients who have demand and come to the bank themselves

2 Consult

customers Customer relationship

individual department

Providing customer with information:

- Loan condition, interest rate, procedure

- Answer customer’s questions related to the loan package

3 Collect

customer’s

profile

Customer relationship individual department

- Collect customer records according to bank regulations

- Re-check customers’ profile and inform customer to complement if the profile not enough or lack notarized documents

- Transfer the loan profile of customers to the appraise dept

4 Analyze

customer

profile

Appraisal dept No information

(Customer’s profile will be sent to the in charge department to appraise and analyze to

determine customer’s repayment capacity)

5 Sign

contract Customer relationship

individual department

-Appraisal department concludes the customer eligible:

+ The staff prepare loan contracts+ Getting customer signatures+ Manager approve

+ Transfer the contract to the appraise dept to re-checking

-Appraisal department concludes the customer not eligible:

+ inform customers their loan disagree and find solution