Expanding classic credit card service for individual customers at PVcomBank – linh dam transaction office

Professional bachelor degree in Finance-Banking-InsuranceCustomer relationships management WORK PLACEMENT REPORT Vietnam Public Joint Stock Commercial Bank Expanding Classic Credit Card

Professional bachelor degree in Finance-Banking-Insurance

(Customer relationships management)

WORK PLACEMENT REPORT

Vietnam Public Joint Stock Commercial Bank

Expanding Classic Credit Card service for individual customers at PVcomBank –

Linh Dam Transaction Office

Names of student : Vu Thi Kim Oanh University year : 2017-2020

Tutor at TMU : Dr.Do Thi Dien Tutor at (Company) : Luong Xuan Huy

Hanoi – 2020

CONTENTS i

LIST OF FIGURE iii

LIST OF TABLE iii

ACKNOWLEDMENT 1

INTRODUCTION OF REPORT 2

1 Reason of the report 2

2 Report object 2

3 Report approach and steps 2

PART 1: INTRODUCTION ABOUT PVCOMBANK AND THE INTERNSHIP 4

1.1.Introduction of the bank 4

1.1.1 Overview about PVcomBank 4

1.2 Introduction of Linh Dam Transaction Office 5

1.3 Internship plan 6

PART 2: INTERNSHIP IMPLEMENTATION AT PVCOMBANK – LINH DAM TRANSACTION OFFICE 7

2.1 The internship position, responsibilities and tasks 7

2.1.1 Department structure and internship position 7

2.1.2 Business procedure and work placement responsibilities 7

2.1.3 Daily tasks 8

2.2 Some business cases 9

2.2.1 Case No1 9

2.2.2 Case No2 10

2.2.3 Case No3 11

2.2.4 Case No4 12

2.2.5 Case No5 13

2.3 Service analysis 14

2.3.1 Customer research 14

2.3.2 Competitor analysis 18

2.3.3 SWOT analysis 20

2.4 KPI and KPR 21

2.4.1 KPI 21

2.4.2 KPR 21

2.5 Host firm assessment and recommendation 22

2.5.1 Host firm assessment 22

2.5.2 Recommendation 22

PART 3: INTERNSHIP ASSESSMENT 24

3.1 The difficulties encountered 24

3.2 Internship gained 24

3.3 Career plan 26

CONCLUDE 27

LIST OF REFERENCE 28

*APPENDIX QUESTIONAIRE 29

LIST OF FIGURE

Figure 2.1: Organizational structure of PVcomBank- Linh Dam Transaction Office

7

Figure 2.2 Customer’s age survey 14

Figure 2.3 Customer’s gender survey 15

Figure 2.4 Customer’s job survey 16

Figure 2.5 Customer’s income survey 17

Figure 2.6 Customer’s marital status survey 17

Figure 2.7 Customer’s Purpose of using credit card survey 18

Figure 2.8 Customer’s demand for using a credit card survey 19

LIST OF TABLE

Table 1.1 The development of PvcomBank 5

Table 1.2 Activities 5

Table 1.3 Internship plan at PVcomBank - Linh Dam Transaction Office 6

Table 2.1 Comparing Credit card products among banks 18

Table 2.2 SWOT of PVcomBank 20

Table 2.3 KPI of Linh Dam Transaction office – Individual Customer Department from October to December 2019 21

Table 2.4 KPR of Linh Dam Transaction office – Individual Customer Department from October to December 2019 21

In order to achieve the great results of this thesis, I have received massive supportand support from my teachers I would like to express my deep affection and gratitude toall the individual department and agencies who have always facilitated and guided usthroughout the process of researching the subject

First of all, I would like to send the warmest greetings, health wishes to Professionalbachelor degree in Finance-Banking-Insurance.Thanks to their through and throughfulguidance, we are now able to complete the group project, the topic " Expanding ClassicCredit Card service for individual customers at PVcomBank "

In particular, I would like to send my most sincere thanks to Dr.Do Thi Dien forhelping and guiding me to successfully complete my project

I would like to thank the Professional bachelor degree in Finance-Banking-Insurancefor direct and indirect assistance during the process of studying and researching the topicwhile conducting this project

After 3 months of practicing at PVcomBank, I have learned a lot of knowledge andaccumulated a lot of experience With the enthusiastic support of the Sales Departmentmembers, I have completed waiting for the most complete internship After working here, Ihave learned valuable lessons for myself a solid luggage to continue on my career path.Over the period of internship, I had the opportunity to interact with the workingenvironment, customers, and the new office work In the past 3 months, I have gained moreconfidence because I have been able to work and study in a real environment, giving meconfidence, patience and attention at work

Given limited time, this project may be displaying some shortcomings due to lack ofexperience I are looking forward to receiving the advice and suggestions from the teachers

so that I can supplement and improve our awareness to better the actual work in the future

INTRODUCTION OF REPORT

1 Reason of the report

The Bank is an important channel of capital with a wide range of activities, stronglyaffecting socio-economic fields, economic entities, economic sectors, affecting many otheractivities Since Vietnam joined the World Trade Organization (WTO) and after the worldeconomic crisis, the level of competition in the banking industry has become increasinglyfierce Banks must increasingly improve their services and improve themselves in line withthe general development law

From a banking business perspective, credit card operation is always the basicoperation of commercial banks Through credit card business, commercial banks provide alarge amount of money to the economy to meet consumer demand for individuals Profitsearned from this activity are relatively large in the bank's profits The people's needs andliving standards are increasing day by day Now, using goods before payment isincreasingly popular Grasping that demand, the bank is increasingly developing creditcard activities, one of the most important forms of bank credit in Vietnam

During the internship and study in my personal room, Joint Stock Commercial Bank

- Linh Dam Transaction Office, I realized that the bank had an interest in credit cardactivity but this has not really become an activity yet big bank Therefore, I chose the topic

"Expanding classic credit card service with individual customers at PVcomBank" as myreport topic with the desire to contribute and offer some solutions to promote further Creditcard operations of the bank

2 Report object

I want to find out the situation of credit card products to customers of PVcomBank

by understanding:

Assessing the quality of credit card types at PVcomBank

Determine customer satisfaction with credit card products

Identify strengths, weaknesses, opportunities and challenges facing Linh Dam Transaction Office

PVcomBank-Collect and analyze collected data

Having practical experience in expanding credit card products at bank

3 Report approach and steps

 Step1 Project design:

Meet bank manager

Identify issues

Design project agreement

 Step 2 Collecting data:

Collect document at bank

Summarize the data

 Step 3 Data analysis:

Prepare mid – term report

Prepare final report

Oral presentation

PART 1: INTRODUCTION ABOUT PVCOMBANK AND THE INTERNSHIP

1.1.Introduction of the bank.

1.1.1 Overview about PVcomBank

Name: Vietnam Public Joint Stock Commercial Bank- PVcomBank

Head office: 22 Ngo Quyen, Trang Tien Ward, Hoan Kiem District, Hanoi City.

Legal status: Vietnam Joint Stock Commercial Bank (PVcomBank) was

established under the Decision No 279 / dated September 16, 2013 of the State Bank ofVietnam on the basis of consolidation between PetroVietnam Finance Joint StockCorporation Vietnam (PVFC) and Western GP-NHNN Commercial Joint Stock Bank(WesternBank) On October 1, 2013, PVcomBank officially operated on the basis of ajoint-stock enterprise registration certificate, enterprise code 0101057919 issued by HanoiDepartment of Planning and Investment

Total assets: VND 100,000 billion

Charter capital: VND 9,000 billion

Website: https://www.pvcombank.com.vn/gioi-thieu-ve-pvcombank.html

- PvcomBank has 116 branches / transactions, 88 ATM / POS in 63 provinces / citiesnationwide

Vision: By 2020, it will become one of the seven leading joint stock commercial

banks in Vietnam in terms of asset size

Mission: “To become a bank with professional staff, fully capable to provide high

quality services to customers, to contribute to the development of the community and addvalue to our shareholders bronze"

Geographical development: PVcomBank has 116 branches / transaction offices,

88 ATM / POS in 63 provines/ cities nationwide

Date of creation: PVcomBank was established on September 16, 2013 and

officially came into operation on October 1, 2013

The development of PVcomBank

Table 1.1 The development of PvcomBank

01/10/2013 PVcomBank was established

2015 The Bank has established 112 transaction points nationwide

In august 2015 PVcomBank launched a preferential credit package with low interest

rates, which excelled at only 5.99% per annum and total loan budget

January 2016 VND 3,500 billion is also a credit program deployed for lending to

customers

(Source: PVcomBank- Linh Dam Transaction Office)

Activities

Table 1.2 Activities

Individual client Enterprise client Currency business

National treasury bonds

(Source: PVcomBank- Linh Dam Transaction Office)

1.2 Introduction of Linh Dam Transaction Office

Name: PVcomBank - Linh Dam transaction office.

Location: 13 BT1 Bac Linh Dam Urban Area, Nguyen Huu Tho, Hoang Liet Ward,

Hoang Mai District, Hanoi city

PVcomBank aims to build an image of a close, friendly, devoted bank for the success

of customers PVcomBank is committed to striving to become a standard bank in providingservices, with friendly style, taking the interests of customers - partners as the target ofaction to build PVcomBank brand

- Competition: VPbank, TPbank,Viettinbank,…

1.3 Internship plan

Table 1.3 Internship plan at PVcomBank - Linh Dam Transaction Office

03/02/2020 Go to the bank to meet the tutor

Luong Xuan Huy.

Understand the internship schedule and what it takes to prepare

04/02 – 07/02 Start internship and study about

credit card service Get a deep knowledge of the product.

Collecting information about what customers need and situation.

17/02 – 10/ 04 Find out customers, collect

customer information and complete procedures as instructed by tutors.

Know how to do procedures.

13/04 – 17/04 Customer satisfaction survey of

PvcomBank

Know more about customers and what service needs improvement

20/04 – 01/05 Analyze service through customer

survey, compare competitors and swot

Know the weaknesses of the bank and from there find solutions to improve quality

04/05 – 07/05

PART 2: INTERNSHIP IMPLEMENTATION AT PVCOMBANK – LINH DAM

TRANSACTION OFFICE.

2.1 The internship position, responsibilities and tasks.

2.1.1 Department structure and internship position

Figure 2.1: Organizational structure of PVcomBank- Linh Dam Transaction Office.

(Source: PVcomBank – Linh Dam Transaction Office)

2.1.2 Business procedure and work placement responsibilities

With my own study and the guidance of tutors and staff in the personal customer

room, I understood the product, the credit card process and procedures

Credit card opening process:

Step 1: Find customers: Through many channels of product introduction and

promotion, customers know what products are available at PVcomBank Customers will

look to the nearest PVcomBank for advice about PVcomBank's card products

Step 2: Collect and confirm records: After consulting clients, the credit specialist

proceeds to collect customer records including: ID card, household registration, customer

salary statement for at least the last 3 months, guest labor contract and proceed to let

customers fill out a credit card opening form

Individual

Customer

Corporate Customer

Corporate

Customer

Director

Director

Step 3: Make a report: after collecting sufficient customer records, experts willprepare a summary of the complete customer information for approval.

Step 4: Give the report to the director for approval and signing: after making thereport, the expert shall submit the dossier to the head or deputy manager of the businessdepartment, after it is approved by the head or deputy manager of the specialist whosubmits the dossier to the Board of Directors

Step 5: Enter record into the system: approved by the Board of Directors, the expertenters the application into the internal system of PVcomBank

Step 6: Transfer records to the risk control department: transfer all approveddocuments to the risk control department for final legal and financial checks beforetransferring customer information to the card center to make cards for customers

Step 7: Send information to the card center: after receiving the information from thecustomer, the card center will receive and process the card within 2-3 days, after that thecard center will transfer the completed card to the transaction office

Step 8: Customers go to the transaction office to sign and receive cards: Advicedepartment will receive the card and then contact the customer to pick up the card

Step 9: Customer activates the card: after receiving the card, the customer activatesand uses the card

2.1.3 Daily tasks

Working in a new environment with many surprises, I was guided by the tutor LuongXuan Huy to take over the job more easily I have learned about all banking regulationsand rules of the Ministry department and organizational structure of the bank I wastrained in how to handle work, learn how to communicate and behave properly Here aresome experiences I've observed and learned:

My first task was to read documents, assist the consultant to complete the documents,receive all calls from customers and find customers who want to open credit cards, etc

 Read some documents related to credit cards: it helps me understand the process

of opening credit cards and what conditions and procedures for individual customers

 Support consultant to complete the document procedure: arrange the file in thecorrect order, check customer information, check the number of contracts, signatures ofcredit staff this job quite simple because I have the guidance of my guide verythoughtful

 Looking for customers who want to open a credit card: this is the hardest job for

me I am a trainee so I have little experience and knowledge in finding sources of

customers However, with the guidance of my staff, I know how to find customers whowant to open credit cards through data provided by marketing department, through friends,relatives and customers who have used the service at PVcomBank

 Receive all phone calls from customers: Every day, there are many customerscalling for different purposes Most of these customers are interested in a number of branchservices, including customers wishing to open a credit card that I am exploring Sometimesthe caller may be a superior, an employee of other departments for a credit officer who isdoing other work without listening time I was assigned to call Every day, I would pick upthe phone without talking in any pattern, but I made no mistakes, and then I was given anadditional class of soft skills training This helps me improve my communication skills,know how to please customers and attract more customers

 Support customers in preparing documents to open credit cards such asidentification cards, household registration books, labor contracts, salary statements, etc

2.2 Some business cases

2.2.1 Case No1

The information of (a real) customer:

o Name: Nguyen Huu Duong

o ID: 0260760000xx

o Address: Phap Van- Tu Hiep- Hoang Mai – Ha Noi

o Age: 30 years old

o Sex: Male

oMarital status: Married and he had 1wife and 2 children

oThe financial position of customer: Mechanical department manager

oHe had worked for his company about 9 years

o His total income: 22 million VND

The information of financial products and services:

o Type of credit card: Platinum

oCredit limit: Over 100 million VND

oCustomer request Credit limit: 70 million VND

o Duration of card: 5 years

Procedure of the customer:

 ID card

 Registration book

 Labor contract

 Statement of salary for the last 3 months

 Card application form

The customer risk:

Group 2 bad debt: 9 days late payment

The information of (a real) customer

o Name: Pham Duy Hanh

o ID: 1632490xx

o Address: Hai Thanh - Hai Hau - Nam Dinh

o Age: 42 years old

o Sex: Male

o Marital status: Married and he had 1wife and 1 children

o The financial position of customer: Officer

o He had worked for his company about 5 years

o His total income: 12 million VND

The information of financial products and services:

o Type of credit card: Classic

o Credit limit: 10-50 million VND

o Customer request Credit limit: 35 million VND

o Duration of card: 3 years

o Check CIC: Good credit card history

Procedure of the customer:

 ID card

 Registration book

 Labor contract

 Statement of salary for the last 3 months

 Card application form

The customer risk:

Low credit score is not eligible to open a credit card, his profile is rejected

The information of (a real) customer

o Name: Nguyen Thi Hien

o ID: 1320816xx

o Address: Luong Lo – Thanh Ba – Phu Tho

o Age: 30 years old

o Sex: Female

o Marital status: Married and she had 1 husband and 1 children

o The financial position of customer: Officer

o He had worked for his company about 6 years

o His total income: 15 million VND

The information of financial products and services:

o Type of credit card: Classic

o Credit limit: 10-50 million VND

o Customer request Credit limit: 45 million VND

o Duration of card: 3 years

o Check CIC: Good credit card history, no bad debt, enough finance to pay monthlycard debt

 Procedure of the customer:

ID card

 Registration book

 Labor contract

 Statement of salary for the last 3 months

 Card application form

The information of (a real) customer

o Name: Nguyen Manh Truong

o ID: 1369335xx

o Address: Yen Nghia – Ha Dong – Ha Noi

o Age: 38 years old

o Sex: Male

o Marital status: Married and he had 1 wife and 2 children

o The financial position of customer: Police

o He had worked for his company about 10 years

o His total income: 25 million VND

The information of financial products and services:

o Type of credit card: Classic

oCredit limit: 10-50 million VND

oCustomer request Credit limit: 50 million VND

oDuration of card: 3 years

oCheck CIC: Government officials, good credit card history, no bad debt, enoughfinance to pay monthly card debt

Procedure of the customer:

 Card application form.

Negotiation:

He wants an additional 50 million credit card to spend for personal life