Developing card services at joint stock commercial bank for investment and development of vietnam – transaction center branch 1

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --- NGUYỄN THỊ KIM ANH DEVELOPING CARD SERVICES AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - TRANSACTIO

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

NGUYỄN THỊ KIM ANH

DEVELOPING CARD SERVICES AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM -

TRANSACTION CENTER BRANCH 1

PHÁT TRIỂN DỊCH VỤ THẺ TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM – CHI NHÁNH SỞ GIAO DỊCH 1

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2020

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

NGUYỄN THỊ KIM ANH

DEVELOPING CARD SERVICES AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM -

TRANSACTION CENTER BRANCH 1

PHÁT TRIỂN DỊCH VỤ THẺ TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM – CHI NHÁNH SỞ GIAO DỊCH 1

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS PHẠM ĐỨC HIẾU

HÀ NỘI - 2020

ACKNOWLEDGMENTS

First of all, I would like to express my great gratitude to Ass.Prof.Dr Pham Duc Hieu for his valuable instructions, criticism and corrections during the development of the study Without his excellent suggestions and constant encouragement, this thesis would have never have been accomplished

My sincere thanks and gratitude are extended to all teachers of the Department

of Business & Management for their help and guidance during the course

I also would like to thank the Management, all of my colleagues at BIDV - Transaction Center 1 Branch for their support in my work

Last but not least, I record my deepest gratitude and thanks to my family for their endless love, great encouragement and support that helped me overcome the difficulties during the study

Sincere thanks!

DECLARATION ON HONOUR

I hereby declare that this is my own study under the supervision of Ass.Prof.Dr Pham Duc HIeu The disclosures are true and correct The findings herein have not been ever disclosed in any other studies

Author

Nguyen Thi Kim Anh

TABLE OF CONTENTS

ACKNOWLEDGMENTS i

DECLARATION ON HONOUR ii

LIST OF FIGURES, CHARTS & TABLES vi

BACKGROUND 1

CHAPTER 1 LITERATURE REVIEW ON CARD SERVICE OF COMMERCIAL BANKS 4

1.1 Overview about the Commercial Banks 4

1.1.1 Concept and characteristics of Commercial Banks 4

1.1.2 Main activities of commercial banks 5

1.2 Card service of commercial banks 7

1.2.1 Overview about card service 7

1.2.2 Develop card service of Commercial Banks 18

1.3 Affecting factors of card service development 25

1.3.1 Subjective factors 25

1.3.2 Objective factors 26

CHAPTER 2 EXISTING CONDITIONS OF CARD SERVICES AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - TRANSACTION CENTER 1 BRANCH 28

2.1 Overview about BIDV - Transaction Center 1 Branch 28

2.1.1 History of development 28

2.1.2 Organizational structure and management apparatus 30

2.2.3 Overview about business activities 31

2.2 Existing conditions of card service at BIDV - Transaction Center 1 Branch 35

2.2.1 Existing conditions of card service through the Branch’s statistics 35

2.3 Evaluation on card service at BIDV - Transaction Center 1 Branch 69

2.3.1 Achievements in the Branch’s card service 69

2.3.2 Restrictions and root causes 70

CHAPTER 3 SOLUTION ON CARD SERVICE DEVELOPMENT AT BIDV -

TRANSACTION CENTER 1 BRANCH 77

3.1 Future card service development orientation of Transaction Center 1 Branch 77

3.2 Solution to develop card service at Transaction Center 1 Branch 79

3.2.1 Strengthen marketing, advertisement and introduction of card service at the Branch 79

3.2.2 Actively develop and take care of ATMs 80

3.2.3 Enhance card product development at the Branch: 80

3.2.4 Improve the employee quality: 82

3.2.5 Complete the customer care policy: 83

3.2.6 Expand the merchant network: 83

3.2.7 Boost up opening personal account: 84

3.2.8 Enhance card-related criminal prevention 85

3.3 Some recommendations 86

3.3.1 Joint Stock Commercial Bank for Investment and Development of Vietnam 86

3.3.2 Bank Card Association 89

3.3.3 The Government 90

3.3.4 The State Bank of Vietnam (SBV): 92

CONCLUSIONS 94

LIST OF REFERENCES 95

LIST OF ABBREVIATIONS

1 ACB Asia Commercial Joint Stock Bank

2 ATM Automated Teller Machine

3 BIDV Joint Stock Commercial Bank for Investment and

8 POS Point Of Sale

9 VCB Joint Stock Commercial Bank for Foreign Trade of Vietnam

10 ICS International Card Scheme

12 Acq Acquirer

13 Banknetvn Viet Nam National Financial Switching Joint Stock Company

14 Smartlink Smartlink Card Services Joint Stock Company

LIST OF TABLES

Table 2.1: The Branch’s net service income items as of 31 December 2017 34

Table 2.2: Summary of card transaction limit in ATMs 37

Table 2.3: Comparison of BIDV and ACB cards 40

Table 2.4: Number of the Branch’s new cards by years 46

Table 2.5: Number of the Branch’s new cards by years 48

Table 2.6 - BIDV positions in domestic debit card market 52

Table 2.7 - BIDV positions in credit card market 53

Table 2.8 - BIDV positions in POS market 54

Table 2.9 - Position of the Branch against BIDV 54

Table 2.10: BIDV card-based transaction revenue of the Branch 55

Table 2.11 Card-based transaction revenue via BIDV Transaction Center 1 Branch’s ATMs and POS: 57

Table 2.12 Card service charge collection in 2015- 2017: 59

Table 2.13 Card service charge structure in the period 2015- 2017: 62

Table 2.14 2017 net income structure of the Branch's retail banking service 64

Table 2.15 Profit from card service 65

LIST OF FIGURES, CHARTS & TABLES

Chart 1.1: Card issuing operation process 13

Chart 1.2: Operating procedure on card payment 14

Chart 2.1: Organizational structure of BIDV - Transaction Center 1 Branch 30

Figure 2.1: Deposit service growth of the Transaction Center in the period of 2015 - 2017 31

Figure 2.2: Resources structure of the Transaction Center in the period of 2015 - 2017 32 Figure 2.3: Credit growth of the Transaction Center in the period of 2015 - 2017 33

Figure 2.4: Credit quality of the Transaction Center in the period of 2015 - 2017 33

Figure 2.5: Net service income of the Transaction Center in the period of 2015 - 2017 35

Figure 2.6 Number of new cards by years 46

Figure 2.7: Number of the Branch's new increased POSs by years 49

Figure 2.8: POS revenue by years 49

Figure 2.9: Growth rate of International Credit Cards and new POSs in the year 51

Figure 2.10 Growth figure of card service charge collection in the period of 2015- 2017 59

Figure 2.11 Card service charge collection structure in the period 2015- 2017 60

Figure 2.12 Growth figure of card service charge in the period of 2015- 2017 62

Figure 2.13 Card service charge structure in the period 2015- 2017 63

Figure 2.14 Growth chart of card service charge in the period of 2015- 2017 63

Figure 2.15: 2017 retail service charge collection structure of the Transaction Center 1 65

Figure 2.16: Card service profit by years 66

Figure 2.17 Comparison chart of card service charge and revenue growth rate in the period of 2015- 2017 66

BACKGROUND

1 Necessity of the study:

With response to Vietnam development and the world and regional economic integration, banking operations of Vietnam commercial banks are gradually renovated to successfully satisfy the increasingly high demand of the customers, economy and renovation and integration process On the other hand, in the context

of increasingly cut-throat competition among commercial banks, to survive and develop, the retail banking services must be developed to expand the market, improve the competitiveness, create the medium and long term key capital resources for the banks, facilitating the diversified banking operations and making the competition position to the new height Moreover, the potential for developing retail banking services is relatively high Through the onsite survey in Vietnam, ANZ Vietnam experts judged that: “Retail market is only on its early stage of development and extremely expansive for any concerned persons” Meanwhile, ACB representative unveiled that over 20% among 90 million of people have bank account; therefore, it is very potential to develop retail banking services It includes

one of retail banking offerings is card service Therefore, it is essential to enhance the card service development to facilitate the banking operations

Transaction Center 1 Branch - Bank for Investment and Development of Vietnam is established to act as a wholesale banking branch However, when market mechanism is applied to the economy, the Transaction Center 1 Branch operates as a mixed branch which on one hand continues launching the wholesaling banking function and develops the retail banking service on the other hand Aiming

at becoming the local leading commercial bank in Vietnam in terms of retail banking services in the period of 2015 - 2018, the past time was recorded with BIDV’s active deployment of actions, solutions and mechanisms to facilitate the retail banking business development However, the retail banking operation’s contribution to the business only makes up 15%, in which card service contributes approximately 10% among Retail Banking services, a relatively low against the position of the biggest branch in the system Therefore, comprehensive policy and

measures are required to further develop card services of Transaction Center 1 Branch to improve the bank’s competitiveness With response to the aforesaid

practice, the topic “Card service development at Transaction Center 1 Branch -

BIDV” is selected as the author’s MBA’s thesis

2 Objectives:

- Systematize the literature review on card service of Commercial Banks

- Describe and analyze the existing conditions of the card service at Transaction Center 1 Branch

- Propose the solution system to develop card service at Transaction Center 1 Branch

3 Subjects and scope of the research:

- Subjects of the research: Card service of commercial banks

- Scope of research: Card service in Transaction Center 1 Branch in the past

3 years (2015-2017)

4 Research method:

- Secondary data source is used to study:

+ Collect the articles on card services as the literature such as Economics of Money, Banking, and Financial Markets Course Books (F.Rederic S.Mishkin); Commercial Bank Management Course Books (Peter Rose); Commercial bank operation course books (Nguyen Minh Kieu), etc

+ Collect the internal information: BIDV’s Card Center; Card Business Department - Transaction Center 1 Branch; Annual Income Statements (2015-2017); Annual Conference Report of Vietnam Bank Card Association

+ Website of some banks for comparison

- Secondary data source:

This data source is collected through questionnaires on customer service quality, concretely:

+ Survey purpose: Solutions for recovering restrictions (if any) are recommended from the questionnaires on customer service quality of BIDV in general and Transaction Center 1 Branch in particular

+ Subject: Customers transacted at ATM located at the Branch (only BIDV card users)

+ Total questionnaires: 100 sheets

+ Form: Questionnaires are directly delivered to customers transacted at ATMs located at the Branch- 191 Ba Trieu, ensuring to recollect all delivered questionnaires

+ Survey time: From 20 to 21 September 2016

5 Scientific and practical implications:

It summarizes, evaluates and analyzes the existing conditions of Transaction Center 1 Branch's card service development in recent years to obtain the panorama about the Branch’s card service against the rivals and Vietnam card market A perfect solution and recommendation system is suggested to complete the conditions toward card service development at Transaction Center 1 Branch

The Article is a reference information channel for the Branch’s Deputy Director in-charge of retail banking to decide to launch some solutions to develop the card services at Transaction Center 1 Branch of the Joint Stock Commercial Bank for Investment and Development of Vietnam

6 Structure:

In addition to the background, conclusions and list of references, the thesis is structured into 3 chapters, namely:

Chapter 1: Some literature review on card service development

Chapter 2: Existing conditions of card service at BIDV - Transaction Center

1 Branch

Chapter 3: Card service development solutions at BIDV - Transaction Center

1 Branch

CHAPTER 1 LITERATURE REVIEW ON CARD SERVICE OF

COMMERCIAL BANKS

1.1 Overview about the Commercial Banks

1.1.1 Concept and characteristics of Commercial Banks

1.1.1.1 Concept of Commercial Banks

The Law on Credit Institutions approved on 16 June 2010 by the National Assembly, valid since 1 January 2011 defines: “Commercial banks (CBs) refer to a banking form to be launched in all banking operations and other businesses as defined herein for profit target and definition: “Banking operations refer to regular business and supply of one or some operations hereunder: Deposit, credit grant, account-based payment service supply”

Correct determination of products and services required by the society and effective supply of such products and services facilitate successful business of banks

1.1.1.2 Characteristics of Commercial Banks

Firstly, commercial bank operating is mainly for profit purpose and for purpose Two operation forms, i.e., treasury and banking services, are mainly initiated by the banks Among which, treasury operations are demonstrated by deposit operations in various forms to grant credit to the customers in-need for the profit purposes Commercial bank refers to “borrower for future lender” for profit purpose Banking service operations are demonstrated by available treasury, payment, foreign exchange and securities operations to commit to offer certain services to the customer within a certain period of time to collect service charge or commissions

Secondly, commercial banking operations must be complied with the legal regulations That means it is only licensed only when all strict legal conditions such

as capital, business plan, etc., are fully satisfied

Thirdly, commercial bank operations are business forms with much higher risk against others and other industries and whole economy are deeply affected by the commercial bank operations This is because the banking operations, especially

treasury business are initiated by fund raising from other persons and using such funds to grant credit to the customer with the principle of principal and interest repayment within a certain period of time As a result, risks are laid to the commercial banking services Risks are originated from the customers, borrowers and objective factors Therefore, the commercial banks have to face with high risk and lay risks to the depositors as well as the economy In order to avoid unexpected risks and effectively control and mitigate the damages caused by bankrupt banks, specific acts are promulgated by the Governments to ensure that such operations are safely and effectively operated in the market economy

1.1.2 Main activities of commercial banks

1.1.2.1 Fund raising operation

This operation starts for various activities of the commercial bank By nature, Commercial Bank is a financial intermediary organization mainly featured by non-equity operations Therefore, in order to have the financial resources for operations and inject capital for the economy, in addition to the owner's Equity, temporary and idle financial sources must be mobilized from the economy through deposit, issuance of bonds, promissory notes and loans from other Credit Institutions or the Central Bank

1.1.2.2 Loan and investment operation

Loan operation of commercial bank: This is a credit grant form of the Bank which the bank’s capital shall be directly provided for the production and consumable demands by satisfying the loan conditions offered by the bank Credit

is a traditional activity of commercial bank and till now regarded as the main profitable operation of the bank

In addition to capital use for loans, the capital is also used to invest into debentures, pool, share acquisition, etc This operation not only contributes to improve the bank’s liquidity and diversify the business activities but also distribute

the risks and offers the significant profit to the bank

1.1.2.3 Other financial services

- Supply transaction account and payment services

By attracting customers (personal customers or SMEs) and opening the transaction accounts at the Bank, the Bank shall manage the customer account and only make payment for goods and services as well as receivables of the account holder as ordered by the customers Thanks to that, the Bank may facilitate its customers to reduce the costs during payment and concentrate a big pool in the economy to use for its operations

- Store valuable items

This service offers a relatively income for the Banks This service is remarkably developed in the world Its contents covers lease of safe to store the customers’ assets and rental collection

- Guarantee

Bank guarantee refers to a written commitment of the Credit Institutions with the party with rights to fulfill the financial obligations on behalf of the customers when the committed obligations are not fully fulfilled by the customers In order to

do that, the approval must be obtained from the Bank and the specific guarantee procedure must be complied When the obligations are performed on behalf of the customers, the Bank shall be enjoyed with a fee, so-called as guarantee fee Such fee is depended on risk exposure of each guarantee contract

- Provide trust and investment consultancy service

Involving in the financial fields, the Bank is supported by a series of financial management experts That is why the Bank is asked to offer the asset management and financial management service by many personal and corporate customers The Bank is available to advise the investment, financial management, establishment, M&A

- Provide stock investment brokerage service

Thanks to the high expertise of the employees and cutting-edge physical and technical infrastructure, the customers have been provided with the details of securities and securities investment such as portfolio, account management, sales on behalf, securities storage, etc

- Provide correspondent service

Many Banks cannot establish its branches or offices anywhere during its operation While, correspondent services such as payment, issuance of deposit certificate, focal contact in co-sponsor, etc., are offered to other counterparts by many Banks (generally powerful Banks)

1.2 Card service of commercial banks

1.2.1 Overview about card service

1.2.1.1 Concept and classification of bank cards

Concept of bank cards:

Bank cards refer to a payment instrument issued to the clients by the issuing bank, used to make payment for goods, services or withdraw cash within the available deposit balance or issued credit limit Bank cards are also used to perform the services through automated transaction system, so-called as ATM system

Classification of bank cards:

 By security technology:

- Magnetic card: It refers to card that all card holder information is encrypted

in the magnetic strip on the card reverse Magnetic card is now making up a big portion against total card quantity available at the market However it is characterized by disadvantage that number of encrypted information is insignificant and stable, hence, secured encryption techniques may be applied As a result, information may be stolen and misused to make fraud card or conduct the fraud deals, causing damages incurred by the card holders and the bank

- Chip cards: Chip cards are more advanced, better secured thanks to magnetic

strip, encrypted information contained in electronic chip arranged in the card front This is the card's latest generation With micro-processing technique, assigned into an electronic chip structured as a compete computer to encode the information, customer and account; its security is extremely high However, it is supported by a new technology and a series of advantages, the high price is applied The merchants of such cards are also costly; hence, it is not as widely used as magnetic cards Issuance and acceptance of such cards are only popular in the developed countries although the International Card Scheme still encourages its members to invest to issue and accept this card type to minimize the card fraud risk

 Classification by card payment nature:

- Credit card: This card enables the card holder to use the card within the

issued revolving credit and the card holder must pay all arisen outstanding debts as prescribed Credit card is the payment method to allow user to use before payment

As of date that the payment is made for goods and services, advance payment shall

be offered to the goods and service provider and such payment shall be recovered from the customer after a certain period of time as agreed between the bank and card holder The time period since card is used to make payment for the goods and services till the card holder is required to return to the bank is depended on credit card category of different card organizations If all outstanding debts are paid on due date, such time shall become the grace period and no interest shall be applied to the card holder’s outstanding debt at the end of the period If the card holder fails to make payment or makes insufficient payment for the outstanding debt at the end of the period beyond such period, the default fees and interests shall be applied for the remaining outstanding debts After all outstanding debts are successfully paid; the card holder’s credit limit shall be restored as initial This is the revolving nature of the credit card

Credit card is issued to the card holder in accordance with his prestige and solvency The solvency is determined by criteria such as: income, expenditure, prestige, available relation with the financial institutions, mortgaged assets, etc., of the card holder When card is used instead of cash, the card must be presented at the merchants for payment

- Debit Cards: It refers to account-connected cards, enabling the cardholder

to withdraw cash from its account at ATMs or conduct the transactions of goods purchase and invoice payment

Like credit cards, debit cards are also a non-cash payment instrument It enables the cardholder to access to its account balance via online connection system to make payment for goods and services at merchants or conduct account-related transactions at ATMs The card holder’s expenditure is mainly depended on the account balance The bank provides services to the card holder and collects the service

charges For the debit cards, no loan process is initiated by the bank and the customers and customers are not classified That is why all what the customers must to do is to open their account at the bank to access to the bank’s debit card product Therefore, debit card is prevailed against credit card in terms of cash replacement possibility

+ Domestic debit card: This card is limitedly used within a territory of a

country Therefore, the transaction currency must be domestic currency Its activities are very simple It is only controlled by a bank or organization from issuance, intermediary processing till clearing Its disadvantages include only use within a country Therefore, business shall not be effective if ATM system is underdeveloped

- International Debit Cards: The cards are facilitated to use the powerful

foreign currencies for payment and globally accepted The cards are supported and managed by the International Card Schemes, mostly VISA and MASTER, consistently and synchronously operated The international cards are very popular thanks to its convenience It is possible to withdraw cash and make payment in all countries in the world where card trademark’s cards are accepted (mainly VISA and MASTER)

- Prepaid Card: Such card is issued by the banks and Credit Institutions It

enables the customers to make advance deposit and use it for payment when the products and services are used The prepaid card uses are similar to Debit Cards The only difference is that PREPAID CARD cannot be connected with the account The top-up must be made before the card is used and only card balance is used

 Classification by the card’s use scope

- Domestic cards: Such cards are issued by the banks and Credit Institutions

to replace for cash to make payment for goods and services and withdraw cash within the territory of the country Generally, domestic debit cards issued by the commercial banks are only used at ATMs and merchant network of issuing bank and correspondents, affiliating banks with such issuing bank within the territory of a country

- International Cards: Such cards are labeled with the trademark of

International Card Schemes which the banks and Credit Institutions act as the issuing agent Such cards are globally used through International Card Scheme

members The International Cards may be nationally and internationally used at any merchants or ATMs labeled with symbol of such card’s acceptance In order to issue the International Cards, the issuing bank must be registered and accepted as the International Card Scheme members, strictly adhered to the regulations on card issuance and payment promulgated by the International Card Scheme Two International Cards includes International Debit Cards and International Credit Cards

1.2.1.2 Concept and characteristics of card service

Concept of bank card services:

Firstly, service refers to the operations and achievements that a party (Seller) may provide to other Party (Buyer) and mainly invisible without ownership The service may be associated or not associated with a physical asset

Banking service, including card service, is an operation, a process, an experience

to be offered by a bank to satisfy the target customer’s demand and desires A product shall be designed in accordance with such concept as a collection of benefits to the highest satisfaction of the target customer Banking product is generally divided into different levels Each level shall add value to the customer, used to create the difference against the rivals’ offerings Under that perspective, various marketing campaigns shall

be launched to successfully exploit the banks’ offerings

The concept of bank card service may be designed in accordance with two perspectives, namely bank and customer Under the customer's satisfaction, it is possible to understand that: bank card service is a summary of card characteristics, functions and uses offered to the customers to satisfy the customer’s demand and expectation on card use

Under the perspective of issuing bank, card service is also a part of banking service Therefore, in addition to the service supply to satisfy the customer’s demand, fees are also collected from card issuance and other added value services

by the bank

It is possible to understand that the bank card service refers to a collection of functions and utilities offered to the target card holders to the highest satisfaction of the card holders such as: Cash withdrawal, bank transfer, invoice payment, payment

for goods and services and others Activities covered by the bank card services include: Card issuance, card payment and risk management

Characteristics of card service:

- Product containing a series of scientific, technical and application factors This is also a great barrier for the card holder, especially the card holder markets and segments with restricted intellectual standard, causing difficulties for the technology transfer, management, operation and settlement of arisen issues

- Mostly invisible product output

- Simultaneous production and consumption When the card service is used

by the customers, the processes, operations and technology system are also applied

to satisfy the customer’s requirements

- Very challenges for quality inspection when it is provided to the customers: The results are largely depended on a series of factors, including the capacity of the service providers, as well as other conditions such as climate conditions, third party providers (transmission line, machines, warranty and maintenance services, etc.) and the customers also play an important role to decide the service quality

- Human resources playing the key role in entire process of product supply, system operation and settlement of arisen issues during use

- Bank card operations’ various utilities for the economy, bank and the card holder In addition to the utilities, card service is potential with a series of risks and losses such as: Card fraud, stolen PIN for withdrawal, unsuccessful ATM transactions but still debiting, insufficient cash receipt or disqualified cash receipt, etc

- Unlike other offerings, bank card services are highly consistent, product differentiation is almost disappeared Therefore, in order to win, the banks generally focus on product marketing, after-sales service, etc., rather than R&D to create the difference in product characteristics

- In addition to improvement of product and service quality, diversification

of provided utility products, because the card service is known as a hi-tech derivative, hence:

+ Card service competitiveness is largely depended on other products

Because the card holder’s demand is much diversified, card service is generally provided in the same comprehensive product package to the cardholder The deposit account product is often associated for the debit card and loan for credit card and payment service, etc Therefore, card service competitiveness is significantly affected by development and diversification of banking service offerings

+ Because card product is characterized by relative consistency among banks

in the same geographical area, in addition to multi-purpose offerings, in order to create the difference against the products of the rivals, the special attention must be paid to the visual factors such as: Design, trademark, etc

- Cooperation between the card service users is very essential to successfully develop the card service It is the cooperation between the Issuing Bank, Acquirer and Merchants Because of cardholder’s diversified payment demand (most of economic sectors may involve in the payment process), the geographical scope is increasingly expanded (from payment within an area such as market, supermarket, etc., up to now when the economy is developed with commerce), then the cross-border development is recorded On the other hand, the payment transaction nature

is increasingly complicated It is not only for general barter transaction It may be developed as economic transactions submerged with enclosed rights and obligations Therefore, to better satisfy such demand, it is essential that the issuing organizations and card service providers must be affiliated with other payment cardholders to create a general market, ensuring smooth payment process and legality of the transactions

1.2.1.3 Classification of card services

Card issuance service

The bank’s card issuance service covers management and deployment of entire card issuance, card use and debt collection processes Each process is closely related to customer service and risk management for the card holders Issuing banks are required to setup the regulations on card use and debt collection, including: Minimum payment amount, date of bank statement, due date, fees and charges, maximum and minimum credit limit, preference policies, etc

Chart 1.1: Card issuing operation process

(1) Request on card issuance is submitted to the issuing banks in its accepted forms

(2) The accuracy and validity of information available in the request declared by the applicant shall be verified by the issuing banks; it shall be compared and referred to the risk prevention notices (if any) released by other stakeholders

(3) After the request is accepted, the bank shall open the card for the applicant, collect the card issuing fees (if any), prepare the card management documents, determine credit limit and category, credit limit (for credit cards), encrypt cards, identify PIN and print the cards

(4) Cards are safely and securely delivered to the applicant The applicant receives the cards and signs the delivery note and magnetic strip on the card’s reverse

Upon card issuance, various related activities must be initiated by the issuing bank such as:

- Launch marketing campaigns to introduce the product

- Appraise the applicant

- Issue the card credit limit for the credit card

- Design and purchase empty cards

- Emboss and encode the cards, provide PIN to the applicant

- Manage the cardholder information

- Manage cardholder’s card use

account

Issuing Bank

(4)

- Manage cardholder’s debt collection conditions

- Provide customer service

- Conduct offset against other ICSs

By launching the card issuance operations, in addition to card holder-based fees, the banks are also enjoyed with exchange fees shared by the acquirer from the card payment fees via ICSs This is the basic profit of the issuing banks With such income source, interest exemption policies and other treatments are given out to expand the card holders and improve the card use revenue

Card payment service

With the card issuance service, the card payment service plays the decisive roles to the card service development Launch of a bank’s card payment service not only aims to collect profit from the discount fees against card payment service value from merchants but also wish to provide a comprehensive service to the cardholder, facilitating the card use

Chart 1.2: Operating procedure on card payment

(1) Card holder uses his card to make payment for goods and services or withdraw cash at AMTs and Merchants When card is received from the card holder, its validity must be verified by the merchants If the card information is valid, the card shall be debited and goods and services shall be provided or cash shall be offered to the card holder by the merchants

(2) Merchants transact with acquirer: Card payment receipt is delivered to

INTERMEDIA

RY

(4) (6)

(1)

the bank Such receipt is kept at the acquirer as the original document to check and handle the claims (if any)

(3) Merchants’ account is credited by the acquirer

(4) The acquirer makes payment with the payment intermediary At the end

of each day, all transaction data from the card issued by other banks shall be collected and transmitted to the card payment intermediary The payment intermediary is: International Card Schemes (Visa, Master for international cards); the State Bank of Vietnam (for domestic cards)

(5) The credit note is delivered to the acquirer by the payment intermediary: After data is received from the acquirer, credit shall be taken for the bank Data transmitted by the payment intermediary include the items paid by the acquirer; fees paid to the payment intermediary and reconciled transactions

(6) Data is transmitted to the acquirer by the payment intermediary

(7) The debit note is delivered to the issuing banks by the payment intermediary

(8) Accordingly, bank statement shall be delivered to the card holder

(9) Debt is paid to issuing banks by the card holder after the bank statement

is received

In order to outperform the card payment operation, following activities must

be launched:

- Develop and manage the merchant information system

- Manage the merchant network activities

- Make payment for the card use transactions to the merchants

- Provide customer service: Plants, equipment, documents, technical support, etc

- Support to train and improve the card payment knowledge for the merchants’ employees

1.2.1.4 Benefits of card service

For the card holders

For the card holders, payment cards not only satisfy the liquidity demands

but also offer the best benefits to the card holders through modern banking offerings that cannot be provided by the traditional payment methods:

- Safe: With payment card, the card holder is not required to bring cash and the card

is embedded with modern science and technology achievements For each card category,

in addition to the encoded information, the card holders are also provided with password to safely use the card during payment Therefore, the risks and losses incurred by the cardholders shall be minimized by the card

- Convenient: With modern technical infrastructure of payment service providers, the enhanced affiliations are made with other goods and service providers Therefore, the card may be used to make payment in a wide range of outlets, airport, supermarket, etc., withdraw cash in ATMs which are daily available without directly visiting the bank, or preparing sufficient cash amount for payment

- Effective financial management: Thanks to payment card, the card holder may manage all spending via bank statement to be received at the bank or ATMs at any time On one hand, the idle cash is profitable in the form that the interest against account balance is paid by the bank On the other hands, it may satisfy the payment inadequacy by expanding the spending via credit limit or overdraft Moreover, with international payment cards, payment may be more effective when

it is made with any currencies, in any countries without barriers in forex management or currency translation

For Commercial Banks and card service providers:

- Increase service income: For a modern bank, service income makes up a high percent, including payment card service income By providing payment cards, the fees may be collected such as: Issuance fee, management fee, transaction fee, foreign currency translation fee and commission from issuing banks that the bank is the correspondent

- Increase deposit sources: The idle deposit may be mobilized from the customers by depositing the current payment to ensure the active balance, or surplus balance unused by the customers

- Expand the operation scale: Through ATMs, 24/24 service may be offered

by the Bank By expanding affiliation in providing payment services among banks, bank with the service providers and other organizations, a nationwide and worldwide diversified and comprehensive payment system is created in many fields to increasingly satisfy the customer demand

For the economy:

- Reduce the rotation costs: Quicker and safer economic transactions are facilitated by non-cash payment Furthermore, issuance costs and cash inventory fees are minimized

- Increase management efficiency by transparency of economic transactions:

By deploying the non-cash transactions in general and via payment cards in particular, all items are recorded into server system of the issuing banks and organizations, facilitating the regulators to well manage the cash flow

1.2.1.5 Risks in card service:

For the card holder:

- Misused cards: When the payment cards are not well stored and used, the card holder may be suffered from loss due to loss of card, PIN and card disclosure

in case of online payment In this case, the possibility to recover the transactions initiated by lost card is very low

- Technical risks: During transaction with the bank, a series of problems may

be hit by the card holder such as: Deducted account balance from withdrawal

without cash receipt, withheld card in ATMs, mis-transfer to other person’s

accounts due to incorrect operation, etc In order to handle such problems, the bank must be directly contacted to fulfill the claim procedures and pending is required

For the merchants:

Due to merchant employees’ disqualified skills and negligence in identifying

the card holder information and distinguishing true and fraud card, it leads to accept the fraud cards and non-account holder users The losses incurred by the merchants and the bank are caused by incorrect operations such as: incorrect amount, transaction category, etc

For Commercial Banks and card service providers:

- Information imbalance: The bank is provided with incorrect information by the applicant to issue the credit cards Therefore, if no proper measures are taken to select and authenticate the information, risk on debt recovery or capital loss shall be very high

- Ethical risks: Fraud cards are issued by the banking staff, etc Many invalid invoices, etc., are created by the merchants to launch the fraudulence to seize the bank’s capital, or the customer cooperates with merchants to launch the sale transactions but cash is withdrawn to avoid fee

- Risks during cardholder payment and card management such as card is counterfeited in accordance with the data collected from other cards, or transaction documents and vouchers, etc With fraud cards, it is possible to conduct the valuable bulky transactions, causing losses incurred by the bank

- Operating risk: During the card service supply operation is initiated for the cardholder, the operating errors may cause losses to the bank such as: Non-thorough appraisal of customer information upon credit card issuance, failure in detecting to fraudulence signs of records and ID cards Card losses or incorrect card delivery to the customer during disqualified card storage Non-compliance with the fund top-up procedure during ATM management, etc

- Technology risk: Because card service is based on modern technology platform with high automation level, a series of risks are potential if the user fails to master such technology such as: The system is hacked for information steal, surplus

or insufficient payment is made by ATMs, automatic transactions are not conducted

or not fully conducted, etc

1.2.2 Develop card service of Commercial Banks

1.2.2.1 Concept on card service development

As the bank card service development is an abstract denotation and inconsistent concept, it is may be accessed and studied under various perspectives Under the perspectives of card users (card holder): Card service development refers to the diversity of card service products, increase in utilities and ensuring

safety and security Card service development is only perceived when the card may

be used for various purposes such as: Cash withdrawal, payment of goods/service invoice, etc Moreover, it may be widely used in both nationwide and worldwide scale Furthermore, the cardholder may be peace in mind in terms of safety of assets and security for the personal data when bank card is used to minimize the technical risks and ethical risks, detrimental to the cardholder’s legitimate benefits

The merchants wish to obtain high sales from the card service development by widely using the payment cards for goods and services

Under the perspective of a commercial bank, the card service development is studied with main concept, i.e., increase in number of customers, sales, performance and quality of the commercial bank’s card service

Card service development is a concept with wider reflecting contents against the card growth concept Meanwhile the card growth only means the pure increase

in quantity of card service, both intensive and extensive increase of card service development is recorded Card service development refers to the change towards improvement in all aspects, perfecting both quantity and quality of card service

1.2.2.2 Evaluation criteria system of card service development

 Increase in card service scale:

 Increase in number of cards/POSs

+ Increase in number of newly issued cards/POSs:

In order to evaluate the card service development of bank, the evaluation criteria on increase in number of issued cards/installed POSs are firstly applied by the banks, such criteria are determined in accordance with following formula:

H1 = Sn - Sn-1 x 100%

Sn-1

Where:

H1: Increase in number of issued cards/POSs

Sn: Number of cards/POS issued in nth year

Sn-1: Number of cards/POS issued in (n-1)th year

Besides, increase in number of ATMs and POSs reflects the responsiveness

to the demand on cash withdrawal and card-based payment services for goods and services, conveniently This is one of criteria to quantitatively evaluate the card service development When card service of a bank is developed, quantity of installed ATMs shall be higher; the number of POSs shall be bigger to the highest satisfaction of the customer in terms of card use Therefore, in order to develop the card service, in addition to increase in number of issued cards, the banks must ensure the regular and stable operation of ATM and POS system to the highest satisfaction of the customers

+ Number of net card increase:

Increase of issued card quantity reflects the possibility to attract the customers, expand the card business of the bank However, in fact, inactive card percent (%) and maintenance of minimum balance is insignificant, causing waste of bank’s resources and costs for product advertisement and marketing, card issuance costs and card business’s operating expenses Therefore, in order to increase the number of issued cards, offering the high performance of the bank’s card service development activities,

it is required to understand the customer demand and advise the proper products to minimize the inactive card quantity

Number of net card increase in the period = Number of new card increase in the period - number of cards to be closed in the period

 Increase in card-based transaction revenue

Card-based transaction revenue refers to total value of transactions conducted via cards (including withdrawn cash amount + total transfer amount + total payment at merchants)

Increase of transaction revenue is determined as follows:

H2 = Tn - Tn-1 x100%

T n-1

Where:

H2: Increase in card-based transaction revenue

Tn: Card-based transaction revenue in nth year

Tn-1: Card-based transaction revenue in (n-1)th year

Currently, cards are still used to withdraw Although it purposes to restrict the cash circulated in the market instead of card use for payment, the transactions are still very difficult When the card-based transaction revenue is increased, in addition to factors such

as total increased transfer amount, total payment amount in the merchants to be increased,

it is impossible to deny that a part of total withdrawn cash is increased In fact, when the withdrawal is made, the fee is collected by the bank, resulting in increase in profit Therefore, this is a criterion reflecting the development of card service

 Increase in card-based market share scale:

Market share refers to the index of measuring percent of enterprise’s product consumption against total market

Market share directly affects the enterprise’s profit and influence of the market

- For the card product, market share is calculated against the criteria:

+ Number of issued cards, card-based payment revenue

+ Total ATMs, ATM-realized revenue

+ Total POSs, POS-realized revenue

- Data is collected from sources:

+ Historical statistics at the bank

+ Collect from the banks’ report at periodic conferences held by bank associations

- Increase in market share through measures:

+ Increase in number of card service provided to the current customers: Implementation for the available customers is relatively easy and less costly

+ Attract customers who have suspended the bank card service: By understanding the root causes that the products are stopped to recover and motivate the customers to reuse the Bank’s products

+ Increase the marketing channels

+ Diversify products: By developing completely new products or upgrading the available products to increase the competitiveness to better satisfy the market demand

Items of entire market

 Increase in utilities of provided services:

With the economy development, the diversity in the payment transactions are increased, resulting in service demand for the Bank products in general and card payment service in particular Therefore, new services are regularly studied and updated to better satisfy the customer demand In addition to the transaction services such as: Cash withdrawal from ATMs, internal transfer within the issuing bank, new services such as invoice payment for other service providers (telephone, power, water, Internet, etc.), mobile topping-up, air ticket payment, etc

 Increase in subjects and scope of card service use:

Customers refers to a group of available customers and prospect with some joint characteristics related to interpretation and forecast their reaction towards the marketing measures launched by the provider

Customer distribution refers to the process that the market is divided into each group with similar demand trends, same viewpoint and behavior for a certain provided products It aims to have the best opportunities to serve for the certain subject

by target or in short, target market It aims to position product and establish the marketing policies and launch the proper marketing programs for the target subjects

- Customer classification into various subjects aims to:

+ Evaluate the enterprise’s market service ability

+ Concentrate resources for the target customer to fulfill the set effective goals

- Items of customer classification:

+ By age: Tastes, knowledge and habits of service and consumable use are different by ages For example: Young persons tend to use the relatively small value products with fashionable and dynamic fashion trends to be clearly demonstrated

+ By gender: Female consumable habits are different from those of mail in terms of service category and quantity Moreover, with female, in addition to the product uses, their concern is also paid to the fashion style

+ By business lines: A series of factors are affected by business lines, especially for income As a result, potential of bank service is affected

+ By geographical position: Geographical position affects income and spending habits For example: customers in the city generally have income higher than that in the rural area and habits of using payment card are more popular

+ Customer type:

Corporate customers mainly use the bank services for business

Personal customers: Mainly use for their personal demand

Households: Both serve for business and spending demand of each family member

- Calculate increased customers through statistics of time and history of: + Each customer subject: The increased number of customers is available; more products are used and profit is higher

+ Total customer subjects: Some subjects may be ineffective However, in generally, the efficiency obtained in terms of: Market share, market positioning and profit to fulfill the short term and long term targets

 Improvement of card service quality and performance:

 Improvement of card service performance is demonstrated by card service profit:

Card service profit is calculated in accordance with the formula:

Card service profit = Revenue from card service - Costs for card service

Card service revenue includes: Issuing fee, annual fee, transfer fee, cash withdrawal fee, invoice printing fee, credit card interest, card with overdraft limit, default fee, foreign currency translation fee and others

Direct costs of card service include: Investments into ATM/POS installation, card issuance costs, investment expenses of infrastructure and technology, maintenance, repair and overhaul expenses of plants and equipment, marketing expenses and other expenses related to card service supply

Currently, break down of all card service-related expenses is not specifically applied such as: Salary payment for the card service officers because in addition to the card business, the officers also undertake other tasks assigned by the bank; overheads such as: Power, water, premise rental allocated to the card business task forces, etc Therefore, costs to calculate card service profit are only relative, covering direct costs related to card service

However, card service development is stilled considered as a must-to-do task

to improve the bank image in the market and card service is used to introduce and popularize other banking offerings

Increase from card service profit is calculated as follows:

H5 = Pn - Pn-1 x100%

Pn-1Where:

H5: Increase in card service profit

Pn: Profit from card service in nth year

P(n-1): Profit from card service in (n-1)th year

 Improvement of provided service quality:

Improvement of provided service quality is demonstrated as follows:

- Product completion: Design, functions, etc., to the highest satisfaction of the customers

- Price: Determination of the best price is to meet 3 conditions: Firstly, it ensures to offset production, operation and management costs of the product Secondly, it is suitable for the consumers and deserved with the functions (benefits offered to the customers) Thirdly, it ensures the competitiveness with other products in the market

- In addition to product study, production and distribution, necessary conditions include focusing on improving and enhancing the technical characteristics, product completion so that a product may be concerned and trusted

by the customer The sufficient conditions hereunder are gone with the good products The enterprise is required to apply a series of various after-sales service policies to maintain and protect the customer benefits such as: User manual, handling the related issues, information update, etc

=> All aforesaid factors are increased to satisfy the increasingly high demand

of the customers: This is the item deciding the Bank’s card service development

Improved service quality aims to satisfy the customer demand However, this item is only qualitative In order to evaluate it, the questionnaire must be designed

to survey the card service users Within the scope of this study, the basic steps are described to use as premises to design the questionnaire on the Branch's card service quality as shown in later chapter The steps may be generalized as follows:

- Select the survey methods: Direct questionnaire/email or interview

- Selection of questionnaire form

- Questionnaire design

- Data processing

1.3 Affecting factors of card service development

1.3.1 Subjective factors

 Economic potential and IT qualification of the bank

Card payment is associated with high technology equipment, including: Local computer network with high security, Telex, telephone sets, ATMs, invoice scanning machine, EDC machine, etc If such plant system is malfunctioned, the unexpected consequences and big damages shall be caused, not only for the physical facilities, plants and equipment but also the bank prestige Therefore, application of latest modern technologies in card business is essential for the banks Moreover, maintenance, repair and services of the machine system must be regularly implemented to improve the service quality in card service issuance

 The bank’s management, policies and mechanism

Each involving bank must setup a proper card product development plan and strategy For that purpose, the specific and clear policies and mechanisms must be setup; the management must be transparent and properly decentralized to fulfill the set target In addition to the indirect tools such as: Target assignment, orientation document, written instructions, etc., the direct tools must be given out such as: Direct contact with the customer, understanding the customer demand, etc The card service development is affected by each bank’s management and control as well as policies and policies Vice versa, it is reversely affected the development and competitiveness of the card market If

a bank wishes to develop its card service quality without flexible policies and mechanisms, long term strategy and orientation, a sound and effective orientation shall

be difficult to look for within a short period of time

 Qualification of card business task forces

Card is a relatively new operation supported with a series of utilities and risks, therefore card service task force must be dynamic and creative Unlike some

traditional banking operations which employees may be used by experience, card service requires a dynamic and far-sighted task force The qualified, dynamic and extensively experience task force is one of the important factors to develop the card service Card may not be self-developed if it is only based on technology factors and utilities It must be relied on a very important factor, i.e., human factor The bank with proper employee training policy shall be facilitated to boost up the future card business development

 Risk management

Risk is available in any business activities of any sectors With sharp development of card business, the criminal activities related to this business are increased and more sophisticated and difficult to detect The international crime organizations make use of advanced technology to collect data from the customer's card and account, then conduct fraudulence behaviors to cause damages incurred by the bank and the customers Therefore, the bank’s risk management in the card field

is relatively important Good card risk management service not only restricts the financial damages but also ensures card service quality, protecting the customer benefits and improving the bank prestige

1.3.2 Objective factors

 Intellectual standard and cash habits of the public

Card development is significantly affected by cash using habit of the people, especially for car payment process A market where the customers’ habit is only using cash shall not be potential to develop the card market Only when payment is mainly made through banking system, payment card may be really optimized

Intellectual standard is demonstrated via the local persons’ awareness on card - a multi-purpose payment instrument, approach and use of card High intellectual standard of the local person means accessibility to the new scientific achievements to better serve for their life

 Personal income

High income means a higher purchase power Then, the persons’ demand is not only to buy essential goods but also to the highest satisfaction on physical and

spiritual aspects Payment card shall be convenient and safe payment instrument to satisfy this demand

 Legal environment

Card service business in any countries is conducted within a certain legal framework Card regulation creates a general legal environment for the specific operations in the fields of card service business suitable with the market and conditions of each bank

 Science and technology qualification

Science and technology development of a country shall have extremely essential and decisive influence on payment and card issuance service quality The higher the technology is, the higher service quality shall be Therefore, more card users may be successfully attracted

 Competition environment

This is a decisive factor of expanding and narrowing the market share of a bank when card market is penetrated If only card service provider is available at the market, such provider shall have the exclusive advantages As a result, the fee may

be very high and benefits of the card holders may not be assured When the market

is penetrated by many players, competition is increasingly cut-throat, it shall facilitate the diversified services and reducing the card issuance and payment fees

Conclusions of Chapter 1

Chapter 1 overviews the Commercial Banks; card service, evaluation criteria system of card service development and factors affecting the card service development, as the premise theory to analyze the card service development situation at the Branch

CHAPTER 2 EXISTING CONDITIONS OF CARD SERVICES AT

JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND

DEVELOPMENT OF VIETNAM - TRANSACTION CENTER 1 BRANCH

2.1 Overview about BIDV - Transaction Center 1 Branch

2.1.1 History of development

BIDV’s Transaction Center (TC) was incorporated on 28th March 1991 under the Decision NO 76/QD-TCCB1 of BIDV’s Chief Executive Officer dated 28thMarch 1991 from the idea of BIDV Management, i.e., a Head Office’s front office, gradually becoming a key unit in BIDV system in terms of scale and operating revenue The Transaction Center is also trusted to be the place to pilot launch the new products, new technologies and fulfill other tasks to serve for the customer, especially the training environment for managers and operators of Head Office

Over 25 year- history of development, four development phases may be sketched out as follows:

- First 5 years (1991-1995): As the start, Transaction Center successfully outperformed the tasks of management, delivery of budget funds, and supervision of economical and proper use of capital for the projects

- Next 5 years (1996-2000): It was the phase to sharply return to self-covered active economic accounting business activities By expanding network of Transaction Office and Savings Funds and launching the commercial bank operations, developing the customer base, the Transaction Center obtained the important achievements, setup the solid position and image in the banking system in Hanoi City

- New phase (2001-2005): With task of the leading Branch in entire system, the Transaction Center was assigned with big tasks by the Head Office (HO) In addition to fund raising function to serve for the national key projects and programs, etc., for its business, the Transaction Center also supported capital for other branches, acting as the pioneer in pilot launch of new offerings, separating and establishing new tier-1 branch to serve for BIDV’s network development strategy, training HR for HO and newly established branches

In addition to outperformance of the business targets assigned by HO, Transaction Center was always one of units to make the most active contributions to BIDV network development in the city Upon separation and establishment of 03 new tier-1 units and branches under BIDV from 2002 to 2004 (Noth Hanoi Branch,

Ha Thanh Branch, Dong Do Branch), 2005 was recorded with Transaction Center’s separation and establishment of one unit, i.e., Quang Trung Branch by upgrading from the transaction office In the context of continuous separation and establishment of tier-1 branches, Transaction Center still maintained its operation network, including 02 transaction offices with 11 fund raising outlets in Hoan Kiem and Hai Ba Trung District

- Phase from 2006 to now: The Transaction Center has further separated and upgraded more 3 tier-1 members under BIDV in the city It includes Hai Ba Trung Branch (2008) and Hoan Kiem Branch (2010), Hong Ha Branch (2013) with total assets of over VND 1,000 billion per unit and thousands of employees It restructured the activities, retail banking organizations and operations, loans for SMEs to be transferred to the newly separated branches 3 main purposes were focused by the Transaction Center: Deposit service to satisfy the local business demand and contribute to increase financial resources for entire industry; service delivered to giants, corporations and groups regardless of ownership; Development

of modern banking service 1st November 2009 was an important milestone The Transaction Center was renamed as “Transaction Center 1 Branch” With this name, Transaction Center and Transaction Center 1 Branch were still two names sharing one tradition

2.1.2 Organizational structure and management apparatus

Chart 2.1: Organizational structure of BIDV - Transaction Center 1 Branch

2.1.2.1 Functions and missions

Like other commercial banks, BIDV’s Transaction Center 1 Branch is a disciplinary commercial bank branch involving in finance, treasury, credit, banking service and non-banking services in accordance with the legal regulations, ceaselessly improve its operating quality and profit, facilitating the implementation of national monetary policies to serve for Vietnam economic development

multi-2.1.2.2 Human resources

As of 31st December 2017, BIDV’s Transaction Center 1 Branch was the home of

311 employees with average age of 28, including nearly 95% of employees with University and Postgraduates degrees

Moreover, such officers are trained and improved with the political theoretical qualification to improve the political stuff in the market mechanisms and integration, concretely:

- Advanced political qualification: 07 persons

- Intermediate political qualification: 304 persons

By awareness that foreign languages are the necessary conditions to develop in

the globalization economy, training and coaching sessions have been always organized for the employees of BIDV’s Transaction Center 1 Branch Therefore, the concerned officers may deal in English

2.2.3 Overview about business activities

2.2.3.1 Deposit service

The past time was recorded with complicated ever-changing business environment conditions Therefore, maintenance and growth of financial resources are the big difficulties and challenges for the Banking system in general and BIDV’s Transaction Center 1 Branch in particular The greatest efforts have been

made to ensure fulfillment of deposit service target

Financial resource growth: Deposit service growth of BIDV’s Transaction Center 1 Branch is sketched out in the chart below: