Improve the quality of card services at techcombank lang ha branch

Researching basic theoretical issues about the quality of commercial bank card services. Clarify analysis of the current status of card usage of the Bank. Give some suggestions and solutions to improve the card usage quality of the Bank. Proposing some recommendations to the Government, State Bank and Association of card issue and payment banks in Vietnam. Practical applicability, if any: Is a document that helps Techcombank Lang Ha branch to refer to in the process of researching to improve the quality of using your banks card.

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

-

NGUYỄN THỊ NGỌC ANH

IMPROVE THE QUALITY OF CARD SERVICES AT

TECHCOMBANK – LANG HA BRANCH

NÂNG CAO CHẤT LƯỢNG DỊCH VỤ THẺ TẠI NGÂN HÀNG

TMCP KỸ THƯƠNG - CHI NHÁNH LÁNG HẠ

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 NGỌC ANH

IMPROVE THE QUALITY OF CARD SERVICES AT

TECHCOMBANK – LANG HA BRANCH

NÂNG CAO CHẤT LƯỢNG DỊCH VỤ THẺ TẠI NGÂN HÀNG

TMCP KỸ THƯƠNG - CHI NHÁNH LÁNG HẠ

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: TS HOÀNG ANH TUẤN

HÀ NỘI - 2020

THANK YOU

With deep, sincere affection, I would like to express my deep gratitude to all individuals and collectives who have facilitated the process of studying and researching this dissertation

In particular, I would like to express my deep gratitude to Dr Hoang Anh Tuan, who guided and helped me a lot during the process of researching and completing the thesis

I would like to express my gratitude to all the teachers of HSB Vietnam National University, Hanoi who taught and encouraged and facilitated me during

my time at the University as well as the time to complete this thesis

I would like to thank the Board of Directors, colleagues at Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch for facilitating and helping me complete this thesis

Although the author has made many efforts, the thesis is difficult to avoid certain limitations and shortcomings Due to time limits and qualifications, the thesis does not avoid shortcomings We hope to receive the sincere advice and contributions of teachers, teachers, friends, colleagues to improve the thesis Once

again, thank you very much!

Hanoi, August 1 st , 20120

Author of thesis

Nguyen Thi Ngoc Anh

TABLE OF CONTENTS

ACKNOWLEDGMENTS i

THANK YOU ii

TABLE OF CONTENTS iii

LIST OF DIAGRAM, FIGURE, TABLE, CHART vi

PREAMBLE 1

CHAPTER 1: QUALITY OF CARD SERVICES OF COMMERCIAL BANK 5

1.1 Overview of card services of commercial banks 5

1.1.1 Concept of bank card service 5

1.1.2 Bank card classification 5

1.1.3 The main activities of bank card services 7

1.2 Quality of card services of commercial banks 11

1.2.1 Card service quality concept 11

1.2.2 Criteria for evaluating card service quality 12

1.3 Factors affecting card service quality 19

1.3.1 Economical factors 19

1.3.2 Legal factor 19

1.3.3 Technology infrastructure 20

1.3.4 Recognize the role of ATM cards 20

1.3.5 The habit of using non-cash payment methods 21

1.3.6 The age of the participant 21

1.3.7 Availability of ATM systems and bank card services 21

1.3.8 Marketing policy of card issuer 22

1.3.9 Utility of the card 22

1.3.10 Intention to use and decide to use 22

CHAPTER 2: CURRENT SITUATION OF QUALITY OF CARD SERVICES AT VIETNAM TECHNOLOGY AND COMMERCIAL JOINT STOCK BANK - LANG BRANCH 23

2.1 Overview of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch 23 2.1.1 History of formation and development of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch 23 2.1.2 The introduction and development of card service Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch 23 2.2 Situation and quality of card services at Vietnam Technology and Commercial Joint Stock Bank 25 2.2.1 Status of card services of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch 25 2.2.2 Quality of card services of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch 36 2.3 Assessing the quality of card services at Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch 41 2.3.1 These achievements 44 2.3.2 Limited and causes 45 CHAPTER 3: SOLUTIONS TO IMPROVE THE QUALITY OF CARD SERVICES AT VIETNAM TECHNOLOGY AND COMMERCIAL JOINT STOCK BANK - LANG HA BRANCH 51 3.1 Service development orientation of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch 51 3.1.1 Overall service development orientation of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch 51 3.1.2 Orientation of card service development of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch 54 3.2 Solutions to improve the quality of card services at Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch 58

3.2.1 Improve and develop card products 58

3.2.2 Expand the network of units accepting card payments 63

3.2.3 Improve the quality of research and market definition 66

3.2.4 Technical innovation and modernization of technology 69

3.2.5 Training and developing human resources 72

3.2.6 Prevention and handling of risks in the card sector 73

3.3 Some recommendations 74

3.3.1 Propose to the Government 74

3.3.2 Propose to the State Bank of Vietnam 76

3.3.3 Propose to the Association of Card Issuing and Payment Banks in Vietnam 78 CONCLUDE 80

LIST OF REFERENCES 82

LIST OF DIAGRAM, FIGURE, TABLE, CHART

Diagram 1.1: CARDS BUSINESS PROCESS [8] 7

Figure 1.1: Service quality model 14

Figure 2.1: NUMBER OF DOMESTIC CREDIT CARD ISSUED TO 2019 32

Table 2.1 DOMESTIC DEBIT CARD FEE 27

Table 2.2 DOMESTIC CREDIT CARD TABLE 30

Table 2.3 SUCCESS CARDS CHARGES USED THROUGH BANKNETVN SYSTEM 33

Table 2.4 Results of customer comments 41

Table 2.5 Percentage of customers having trouble with Techcombank's Lang Ha ATMs in 2019 46

Table 2.6 The table compares the service fee schedule to pay for goods and services at some banks in the area 47

Table 3.1 CARD DEVELOPMENT PLAN FOR 2019 - 2024 56

Table 3.2 DEVELOPMENT PLANNING FOR ACCEPTING CARD (2019 - 2024) 57

Chart 2.1 NUMBER OF DEBIT CARD ISSUED DOMESTIC TO 2019 28

PREAMBLE

1 The urgency of the topic

The economy of our country in recent years has seen strong growth, marking development steps in both depth and breadth Especially after our country joined the World Trade Organization (WTO), Vietnam became a destination for domestic and foreign investors All of these initial successes cannot help but mention the great contribution of the banking system across the country Along with the development and integration of the economy, the banking industry is also making great changes, step by step innovating and meeting the increasing demands of domestic customers

In order to survive and develop sustainably, domestic commercial banks not only have to innovate on technology, improve management methods, modernize the payment system, but also pay more and more attention More importantly, further improve the quality of its services Prior to the 2000s, banking services were mostly encapsulated in savings deposit taking, money transfer and lending services to customers, recently in the field of banking retail services, bank cards The bank has emerged as a multifunctional personal finance product, bringing many utilities to customers The card can be used to withdraw money, deposit money, provide credit, make payment for goods or services, or transfer money The card can also be used for many non-financial services such as account information lookup, cost of living information

The card service has many advantages in satisfying customers' needs because

of its convenience, safety and widely used in the world, especially in developed countries The development of card services is becoming an indispensable trend by those banks, and continues to attract attractive benefits from this feature-rich card With the efforts of commercial banks, the card service with its utilities is no longer a strange product but has gradually entered the lives of many people According to the State Bank's report, in 2019, the speed of payment card issuance increased by 30% compared to 2017, reaching a total of 3.5 million cards issued with nearly 60 different brands When issuing a card, the bank will collect fees related to issuance such as card usage fee, interest rate (with credit card) and

especially using idle deposit balance in card accounts of cutomer However, bank card service is a service developed on the basis of modern technology, reaching international standards of banks The competition in the development of card services has led banks to focus on increasing features and utilities, superior service technology, diversifying card products and services, and making efforts to bring them to customers quality products and differentiated added values to attract more cardholders at home and abroad The competition to develop card services of commercial banks is becoming more and more exciting than ever

However, the infrastructure for card services of commercial banks is generally outdated, technical equipment for transactions is still limited The quantity and quality of ATMs did not meet the customer's ATM transaction needs ATM systems are distributed evenly, most ATMs are concentrated in big cities or branches of banks In addition, many common risks may be the slow transmission speed, consumer errors during use The risks, incidents and limitations related to ATM and ATM cards greatly affect many opportunities to develop card services and promote cashless payments Therefore, the task of preventing risks and overcoming these limitations to improve the quality of card services and increase customers is a very important task for commercial banks

The card service has actively contributed to improving the civilization of payment, increasing the competitiveness of banks in the integration process The fact has proved the role of bank card services as a strategic spearhead in modernizing and diversifying types of banking services, bringing many utilities to customers However, viewed objectively, the market of bank cards in Vietnam is still in the early stages, the products and services provided are not diversified, besides many favorable opportunities As many challenges require commercial banks in general and Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch in particular to have reasonable business solutions In addition, Hanoi is a large potential area for card service to develop, but the fierce competition

of commercial banks in the area and the habit of keeping cash of the majority of people Hanoi requires the leadership and staff of Vietnam Technology and

Commercial Joint Stock Bank - Lang Ha Branch to find strategies to develop card services in a reasonable way that best suits their operating areas

Originating from the above practice, as a cardist at Vietnam Technology and Commercial Joint Stock Bank, the author chooses the topic: "Improving the quality

of card services at Vietnam Technology and Commercial Joint Stock Bank - Lang

Ha Branch" to research to solve these problems

3 Object and scope of the study:

- Research subjects: Quality of card services of commercial banks

- Scope of research: Card service quality at Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch from 2018 to 2019

4 Research Methods

Use qualitative and quantitative methods Collecting documents, observing customer behavior, then analyzing data about the environment, customers, and direct competitors

5 Overview of research documents

In order to gain the basic knowledge and foundations that form the theoretical basis for the topic, the author has consulted, summarized, summarized and inherited from some documents of the following authors:

+ Marketing Theory: Document "Basic Marketing" by Assoc Prof Dr Nguyen Thi Nhu Liem, "Marketing Management" by Assoc Prof Dr Le The Gioi -

Dr Nguyen Xuan Lan

+ Theory of Banking: Document "Modern banking operations", "Credit and credit appraisal of banks", by author Dr Nguyen Minh Kieu and the document

"Bank credit", by the author Dr Ho Dieu

In the process of implementing the topic, the author also consulted from a number of relevant studies, thereby helping the author have an overview of the field being studied, and help the author draw the research orientations and methods as

well as suggestions and solutions to suit their topics

6 Thesis structure:

The thesis consists of 3 chapters:

Chapter 1: Quality of card services of Commercial Bank

Chapter 2: Actual situation of card service quality at Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch

Chapter 3: Solutions to Improve card service quality at Vietnam Technology and

Commercial Joint Stock Bank - Lang Ha Branch

CHAPTER 1 QUALITY OF CARD SERVICES OF COMMERCIAL BANK

1.1 Overview of card services of commercial banks

1.1.1 Concept of bank card service

Bank card service is a payment instrument issued by a card issuing bank to its customers for payment of goods, services or cash withdrawal within the scope of their deposit balance or granted credit limit Bank cards are also used to perform services through automated teller systems, or ATM self-service systems According

to the "Regulation on issuance, use and payment of bank cards" issued together with Decision No 371/1999 / QD / NHNN in October 19th, 1999, bank cards are payment instruments issued by banks for use by customers under contracts signed between banks and cardholders

Bank cards are always made of plastic according to international standard sizes, including the following elements:

- The trade mark of the card, name and logo of the bank or card issuer

- The validity period or the time of card usage

- Card rank (standard / gold / special)

- Card number, cardholder name, security factors

- In addition, the card may also have the name of the company responsible for payment or some other factors as prescribed

1.1.2 Bank card classification

According to the payment nature of cards, bank cards are classified into:

* Credit Card: this is the type of card that when used, the cardholder is issued a

credit limit issued by the issuing bank and does not have to pay an error if the cardholder refunds the correct amount of money used tenor to purchase goods and services at business establishments, shops, hotels accept this card

* Debit Card: is a means of payment for goods, services or cash on the basis of the

amount of money in the cardholder's account at the bank Debit cards have two basic types:

- On-line card is a debit card that the value of the transactions is immediately deducted from the cardholder's account when the transaction appears

- Off-line is a debit card that the value of the transactions will be deducted from the cardholder's account after a few days of transactions

Debit and credit cards have a number of distinct differences:

The biggest difference between the two types of cards is that with credit cards, customers spend according to the credit limit granted by the bank, while with debit cards customers spend directly on their deposit accounts at banks

Credit and debit cards are a means of equal payment and open to all people, all ages and industries Both types of cards can help customers avoid the unfortunate risks that may occur when carrying cash In particular, international credit cards are a convenient and safe means of payment for those who often travel abroad

* Cash Card: is a form of debit card but has only one function is to withdraw cash

at automatic teller machines (ATMs) or banks With a special function for withdrawing money only, the amount withdrawn each time will be deducted from the deposit amount

1.1.3 The main activities of bank card services

Diagram 1.1: CARDS BUSINESS PROCESS [8]

Customers - cardholders buy goods and services at the card accepting units provided by the issuing bank

The merchant accepts the card of the transaction at the card payment bank The card payment bank advances the card payment amount (equal to the total value

of the presented invoice minus the agency fee as agreed) by crediting the account of the accepting unit

Card payment bank sends card transaction data to the issuing bank for payment through the card exchange and payment system of international card organizations Based on the received transaction data, the international card organization shall credit the payment bank account (equal to the total value of the transaction invoice minus the exchange fee prescribed) and debit the issuing bank account card

Card issuing bank requires customer-card holder

card accept

bank

International card organization

(2) Buy goods and services

(7) Submit data

(8) Debit notices

(6) Credit advice

The cardholder pays the issuing bank for the payment for goods and services provided by the card accepting units

The above process shows that card payment is a process of buying and selling bearing goods and services in which the participants must pay each other: the card accepting unit for the cardholder, the payment bank for the card accepting unit, the issuing bank and the bank pay the loan and claim the loan from the cardholder The whole process is regulated, regulated and managed by a unified organization in the world, the international card organization

Thus, in order to carry out card service business, banks normally have to carry out professional activities including: issuing activities, payment activities and risk management activities

1.1.3.1 Card issuing activities

Card issuance activities of the bank include the implementation and management of the whole process of card issuance to the market, card use and debt collection by cardholders Basically card issuance service includes the following main contents:

- Elaborating regulations on card issuance, use and debt recovery such as: issuance dossier, withdrawal limit, payment, bank transfer, minimum payment amount, statement date, grace period term, fees and charges, maximum credit limit, minimum, preferential policies for cardholders,

- Appraise customers issuing cards, granting payment limits

- Design and organize the purchase of blank cards, print and encode cards, create PIN numbers for customers

- Manage customer information and card usage activities of customers: Resolve all requests related to customers 'use of cards, make an update to the system of all transactions using customers' cards line,…

- Manage customer debt collection situation

- Providing customer service

- Organize payment with payment banks and international card organizations, card centers

For card issuance activities, in addition to enjoying the issuance fee collected from the cardholder, the issuing bank is also entitled to a fee shared by the payment bank from the card payment fee, benefiting from the current deposit source This

is the basic profit of financial institutions, card issuers On the basis of this revenue, the financial institutions and card issuers offer other interest-free and preferential regimes for customers to attract customers as well as encourage card spending

1.1.3.2 Card payment activities

Along with card issuance activities, card payment activities play a decisive role in the development of card services Card payment activities of a bank include the following main contents:

- Develop and manage the information system that accepts cards

- Manage the operations of the card acceptance network

- Organize payment of card usage transactions to card accepting units

- Providing customer service

- Organizing training courses on card payment knowledge for employees of card accepting units

- Provide equipment and supplies for card payment

The implementation of card payment activities helps the bank to profit from the fee calculated on the value of card payment transactions from the card accepting units, and thereby providing customers with a convenient service, create a convenient basis for the use of the card One of the important activities of the bank in card service is

to expand the network of card accepting units, which is very important

First of all, the large number of merchants that accept cards across the markets and businesses means that bank cards are accepted for payment in more places, are easier, more convenient and bring More benefits for cardholders, the card accepting units and then the issuing banks and card payment banks

Not only expanding the payment market by signing payment contracts with new card accepting units, a card payment bank is particularly interested in maintaining relationships with the available card accepting units Yes, shown in customer care Without appropriate policies, good support services, enabling card

accepting units to accept card payments easily, the bank informs them of its commitment after that, At discount rates, other banks will take advantage of this opportunity to offer better services to merchants Thus, customers in payment activities will be reduced, the profit-earning goals of banks will be deeply affected Currently, card payment activities in the international market have grown at a very high level with over hundreds of thousands of card accepting units in over 200 countries, accepting cards bearing world-famous brands such as Visa Card , Master Card, American Express, Diners Club, JCB and many other national and domestic bank cards In Vietnam, although the bank card is still new, it has met the payment needs of a large number of foreign customers as well as the growing domestic market

In addition, in the process of card issuance and payment, there are also transactions: tracing, claiming and claiming reimbursement, managing risks in card service activities in order to prevent fraud and counterfeiting acts card, solving problems for cardholders, thereby contributing to improving the quality of card services, strengthening the bank's reputation

1.1.3.3 Risk management activities

Any business in any industry involves a lot of risk So is the card service business of commercial banks Risks and risks may occur at any time during the process of card issuance, use and payment, causing damage to cardholders, establishments accepting and analyzing, learning and work together to be able to cope with risks and prevent risks by using appropriate technical and business measures effectively A business card bank is very vulnerable, even bankruptcy

if not pay attention to this problem

Risk management activities in card services include the following:

- Investigate, prevent the use of fake cards Manage the list of accounts related to the cards that have been reported as stolen or lost Develop plans to track the security of blank, printed and damaged cards, and recalled cards

- Update information on the list of stolen and lost cards Addressing the needs of counterfeiting, tracing and complaints of customers

- Cooperate with relevant authorities in investigating and handling

contractual and counterfeiting violations

- Organize training for staff of card accepting units and cardholders on counterfeiting prevention measures

1.2 Quality of card services of commercial banks

1.2.1 Card service quality concept

Scientists have done a lot of research on service quality, depending on different perspectives, the researchers, business practitioners, businesses can offer

or use different perceptions of service quality Some views about quality come from producers, consumers, from products or market requirements:

First opinion [3]: Compared to a tangible product, the "service quality" is much harder to identify, measure, control and improve because the product of the service is intangible, not stored, non-reproducible, depending on the individual, spontaneous, irreversible and encompassing the emotional element This view is that "service quality"

is defined and defined price by the customer, not the service provider

The second point of view [3]: "Service quality" is customer satisfaction defined

by a comparison between expected quality and achieved quality Quality expectation is the expectation of customers about service quality Customer expectations are generated by the following 4 sources of information; Word of mouth, personal needs, experience, advertising and promotion Of the 4 sources of information on the 4th source is under the control of the company

The above views have not yet reflected the nature of quality The most general way "Service quality" is the level of customer satisfaction in the process of perceiving service consumption, which is the overall service of the business that brings the most benefit chain and satisfies the most expected demand of customers

in production, supply and output service delivery ” This view represents the quality defined by the customer and not by the service provider Customers evaluate the quality of services provided through the provision of services by the business and assess the people who stand by Quality of products and services is an issue at all levels of production, it is an objective requirement in the process of creating products, so it is not reserved for any level The output and quality levels are

different

The quality of card services also adheres to the characteristics of general service quality Thus, card service quality can be understood as follows: Card service quality is the satisfaction and satisfaction of customers in the process of perceiving the use of card services that enterprises bring

1.2.2 Criteria for evaluating card service quality

Service industry is growing, the service quality is focused and invested in research Although there is still no consensus among researchers about service quality, most of the views recognize that service quality is closely related to customer satisfaction (Cronin and Taylor, 1992; Spereng , 1996; cited by Bexley, 2005) [15] and service quality will be a measure of customer service expectations (Lewis Booms, 1982) According to Parasuraman & ctg (1985, 1988) "Service quality is the distance between customer expectations and their perception when used through the service"

[1] For a long time, many researchers tried to define and measure service quality For example, Lehtinew & Lehtinew (1982) suggest that service quality must be assessed on two aspects (1) the service delivery process and (2) the outcome of the service Gronroos (1984) also proposed two areas of service quality: (1) technical quality and (2) functional quality Parasuraman et al (1985) provide a model of five gaps and five service quality components, referred to as SERVQUAL The SERVQUAL scale is made up of two words Service - service and Quality - quality that many researchers consider to be quite comprehensive (Svensson, 2002)

* Service quality model SERVQUAL

Model of five service quality gap: [4]

A widely used measure of service quality is the SERVQUAL model developed by Parasuraman & ctg (1985,1988) The SERVQUAL model is the most used approach to measure service quality, compare customer expectations before a service and customer perception of the service delivered Parasuraman & ctg (1985,1988) proposed a model of five service quality gaps

The first gap: Appears when there is a difference between customer

expectations about service quality and service administrators feel about customer expectations about service quality The basis of this difference is that the service company does not fully understand what makes the quality of its services and how

to deliver them to its customers to satisfy their needs

The second gap: Appears when a service company has difficulty translating

its perceptions of customer expectations into characteristics of quality In many cases, the company can always translate these expectations into specific quality criteria and deliver them to customers with the characteristics of service quality The main reason is the professional competence of the service staff as well as fluctuations in service demand There are times when the demand for services is so high that the company cannot meet it

Third gap: Appears when service personnel do not transfer services to

customers according to defined criteria In service, employees have direct contact with customers, playing an important role in the process of creating quality However, not always and all employees can complete the task according to the set criteria

Figure 1.1: Service quality model

Source: Nguyen Dinh Tho 2003, Adapted from Parasuraman & ctg (1985:44)

Fourth gap: Advertising media and information also impact on customer

expectations of service quality Promises in promotional programs can increase customer expectations but also reduce the quality that customers feel when they are not being fulfilled

Fifth gap: This gap appears when there is a difference between quality and

expectation by customers and the quality they perceive Quality of service depends

on this fifth gap When customers realize that there is no difference between the quality they expect and the quality they perceive when they consume a service, the quality of the service is considered perfect Parasuraman & ctg (1985,1988) think that service quality is a function of the fifth distance, which depends on the previous

Reception service

Transfer service

Convert comments into quality requirements

Awareness of the company about customer expectations

Information to customers

distance That is, gaps 1,2,3 and 4 Therefore, in order to shorten the fifth gap and increase the quality of service, service administrators must try to shorten these gaps The service quality model, according to these researchers, can be expressed as follows:

CLDV = F { KC5 = f(KC1,KC2,KC3,KC4)}

Inside:

CLDV : Service quality

KC1,KC2,KC3,KC4,KC5: the gap 1,2,3,4 and 5

According to Parasuraman & ctg (1985), the service quality perceived by customers is a 10-component model that is:

1 Reliability refers to the ability to deliver services appropriately and on time

from the beginning

2 Responsiveness expresses the desire and willingness of service staff to

provide services to customers

3 Competence refers to the level of expertise required to perform a service,

the ability to service it when the employee comes in contact with the customer, the employee directly performing the service, the ability to research to capture relevant information needed for customer service

4 Access involves creating all conditions for customers easy access to

services such as shortening waiting time of customers, places of opening hours convenient for customers

5 Courtesy speaks out about a friendly, respectful and customer-friendly

service personality

6 Information relating to communication and communication with customers

in a language they understand easily and listen to issues related to them such as service explanation, costs, complaint settlement Complaints questions

7 Credibility speaks up the ability to create trust for customers, making

customers trust in the company This ability is reflected in the name of the company, the personality of the service staff to communicate directly with customers

8 Security refers to the ability to ensure the safety of customers

9 Understanding / Knowing the Customer is demonstrated by the ability to

understand the needs of customers by understanding the requirements of customers who care about them personally and identify regular customers

10 Tangibles are shown through appearance, attire of service staff, and

equipment for service

The above 10 service quality model has the advantage of covering almost every aspect However, this model has the disadvantage of being complicated in measurement Moreover, this model is theoretical, and it is possible that many components of the service quality model will not achieve discriminatory value Therefore, these researchers have repeatedly tested this model and came to the conclusion that service quality consists of 5 basic components which are:

1 Reliability is demonstrated by the ability to perform services appropriately

and on time from the beginning

2 Responsiveness expressed through the desire and availability of service staff

to provide timely services to customers

3 Assurance shows the level of expertise and service standards courteous and

affable with customers

4 Empathy demonstrates the care and concern for each individual customer

5 Tangibles are shown through appearance, attire of staff, equipment and

facilities for the service

Therefore, to assess the quality of card services, we also use the following criteria:

a) Some qualitative indicators

- Reliability: Reliability is shown the ability to perform the service as promised

exactly and timely, accompanied by a flawless service style Failure to keep the promise is the most frustrating source for customers, if this happens repeatedly it will quickly lose customers

- Responsibility: Responsibility is the ability to reflect the willingness to serve

customers best, safest Besides, it requires a level of recovery when risks occur in the

fastest and safest way At the same time, employees need to know their products and services, need to be able to easily communicate the information they need to customers, and need to be willing to go a few miles to answer customers' questions

- Assurance: The assurance shown is the courtesy, respect and customer trust of

the service staff, so this guarantee must be given adequate attention, that is, always care, do good to customers A polite and caring attitude is very important and necessary Customers will feel you appreciate their work

- Empathy: Empathy with customers demonstrates the ability to understand

customers, share with customers joy and sadness and reassure customers

- Tangibles: Tangibles is reflected in material facilities, applied equipment,

appearance, manner of decoration, location These factors give customers a sense of the quality of the service or through which people see the level of service

b) Some quantitative indicators

- Revenue: Sales revenue is the total amount of sales of products, goods,

services provided to customers including surcharges and additional charges outside the selling price (if any) The sales amount is stated on the invoice (VAT), the sales invoice, or on other documents relating to the sale, or the price agreed upon between the buyer and seller Improving product quality and service quality not only affects selling price but also consumption volume High quality products, the price will be high Improving product quality and service delivery quality will add product value and service value, facilitate easy sales, quickly collect sales money and increase sales

- Profit: Profits are the difference between revenues earned and expenses

spent The profitability of the business depends on the quality of its operations and its management Profits are general indicators representing the results of production and business processes It fully reflects the quantity and quality of operations of the enterprise, reflects the results of the use of basic production factors such as labor, materials, fixed assets, etc

- Market share: The market share of an enterprise for a type of goods or

service is a percentage of its turnover (buying or selling) and the total revenue of

other enterprises on the relevant market on a monthly or quarterly, yearly Simply analyzing revenues and profits is not enough, it is not known how the company is operating compared to competitors Leaders need to monitor the market share of their businesses If the enterprise's market share increases, it is benefiting more than its competitors If market share drops, businesses are losing against their competitors The increase or decrease of market share is related to the quality of products and services that businesses provide

Similar to any task or business activity, to improve service quality and performance, it is necessary to learn various lessons from which to realize the effectiveness of the service provided, where are the most appropriate activities In assessing service quality, it is necessary to master some of the following characteristics of service quality:

- Firstly, the service quality is the quality of the people, so it is necessary to focus on training, training the professional and communication skills of the staff The quality of service is expressed through the factors of education, communication, voice, reasoning ability and ability to apply

- Second, the perceived quality of service is crucial, customers always make service quality requirements through information they receive or information they have before, when customers use a certain service

- Third, service quality varies by seller and buyer at different times That means it is difficult to determine the same level of quality for everyone, the same service, but for different customers, the level of quality is different

- Fourthly, The same service can provide different qualities for each different customer groups at different times, so it is difficult to fully meet the needs of all customer groups

Through the process of propaganda, promotion, persuading customers nowadays a large number of businesses, agencies, organizations and officials, workers, even students find the utility of card services, they are willing to accept this service However, the true utility of the ATM card service is not guaranteed by commercial banks Types of ATMs, card service technology of commercial banks

import or purchase of different goods, from different countries, different generations of machines, so when connecting, there are problems and annoyances, troubles and even lawsuits Banks have not paid attention to professional training for operators, maintenance, maintenance, and other service-related ATM Therefore, the level and quality of card services of commercial banks are now lagging behind the requirements of reality and increasingly lagging behind the region and the world

1.3 Factors affecting card service quality

1.3.1 Economical factors

People's income is one of the factors that directly influence the decision to use

an ATM card, usually the more individuals and families collect, the more likely they are to use the card (Kinsey, 1981) Using the card is convenient for storing income, paying bills and expenses incurred in life (Barker and Sekerkaya, 1992) According to Choi and De Vancy (1995), high-income people often require higher card-attached services (such as overdraft limit, ability to withdraw cash at different automated teller machines, etc.) On the other hand, in the context of Vietnam, the uneven economic development among provinces and cities, the cash flow of consumption is mainly small payments, causing certain difficulties in implementing the payment system Payment via ATM card

1.3.2 Legal factor

Card market is a relatively new market in Vietnam, however, this is a fairly competitive market because banks are aware of the important role of holding card market share in the present for the Success of future business Armstrong and Craven (1993), Heck (1987) said that in order for a card market to work well, the Government needs to set a certain integration roadmap, accordingly, there should be specific legal documents (such as transaction law, electronic payment, electronic signature .) to define the rights and obligations of the parties involved On the other hand, the Government should also have policies and regulations to protect the safety of participants, constraints between the parties related to mistakes, unintentional or intentional violations that create risks for themselves, the

cardholder itself or other entities, including those relating to non-cardholder classes, may also cause loss and risks to the bank such as damage to the assigned equipment Automatic translation in public places (White, 1998)

1.3.3 Technology infrastructure

One of the key factors to the success of the card business is the country's technology infrastructure in general and the technology of card issuers in particular (Armstrong and Craven, 1993) These technological innovations have a strong impact on the business activities of the bank, it has brought about miraculous changes in banking business such as fast money transfer, automatic teller - ATM withdrawals, electronic card, phone-banking, mobile-banking, internet banking (internet banking) The choice of transaction and card opening for any bank depends largely on the technique that the bank uses to satisfy the needs and wants of its customers (Hayhoc et al., 2000)

Currently, one problem that banks participating in card services in the Vietnamese market is that the card acceptance system (ATM and POS) is not big enough to encourage the population to use the card in the wide In addition, many of our banks with not large business scale have encountered difficulties in synchronously investing in technology infrastructure and software solutions to deploy the card business system

1.3.4 Recognize the role of ATM cards

The relationship between the level of awareness of the role of the card and the decision to use the card is confirmed in the studies of Danes and Hira (1990), Barker and Sekerkaya (1992), Canner and Luckett (1992) The authors said that when people have certain awareness and understanding about the role of new technology in general and the role of ATM cards in particular transactions, it will be easier to make a decision to use the card An important factor that helps to realize the role of ATM cards is the level of the user Currently, many of those issuing banks have access to employees who are businesses, students, and students who are sensitive to the awareness and access to new types of technology

1.3.5 The habit of using non-cash payment methods

Vietnam's economy is shifting from small, subsidized and concentrated commodity production to a market economy, the common payment among people is still in cash The income of the people in general is still low, products that meet the basic needs of the people are still mostly bought in "free" markets plus the habit of using cash, simple and convenient This life is not easy to change quickly Those who have a habit of using cashless payment methods will tend to use the card more and adapt to technological change faster

1.3.6 The age of the participant

Older people are less likely to take risks and use cards less often (Barker and Sekerkaya, 1993) Meanwhile, people between the ages of 18 and 45 easily accept

an account because at this age, they are quite "sensitive" to the changes of new technology and dynamic in searching new applications that cater to your life Preliminary research on the ATM card market shows that a lot of people between the ages of 18 and 45 are cardholders and they conduct quite a lot of transactions through this system Therefore, banks that need to actively approach this object will have many opportunities in issuing cards in the future

1.3.7 Availability of ATM systems and bank card services

In the context that the investment cost for an ATM is quite large, the bank that

is able to bring the readiness to the users (number, location, level of market coverage)

of the bank It will dominate the market (Prager, 2001) The reality in Vietnam also shows that some banks have a large number of ATMs (such as Techcombank, East Asia ), set up in reasonable places such as supermarkets, airports, commercial centers, schools that has gained a lot of advantages in exploiting the card market A user cannot and does not accept too much time to arrive at a cash machine On the other hand, there are some banks that provide cards such as ATM systems that are not available 24 hours (possibly due to security issues) as well as one of the obstacles to finding markets Availability is not only reflected in the number of devices accepting the card, but also in the issuance Currently, banks have fiercely competed and introduced many preferential policies in issuing cards (such as opening cards at work,

opening cards within the day, free issuing cards ) to help user has more choices and the ability to hold more types of cards

1.3.8 Marketing policy of card issuer

In order to bring the card network closer to the public and change the cash usage habits of customers, many card issuing banks have established consulting services and procedures for issuing ATM cards at ATMs located in public places or that workplace creates favorable conditions for customers to make cards Policies such as ATM registration at public service counters, free card opening, instructions and trial transactions reinforce trust, loyalty and also affirm the brand's own That bank to the user As a type of product of new technology, the role of marketing and communication in utility, safety, utility and suitability with the development of the economy plays an important role, helping people have a Insights and comprehensive understanding of this type of service

1.3.9 Utility of the card

With the new technology, the more utilities and issuers have the ability to attract customers' interest In addition to the usual functions for ATM cards such as depositing, withdrawing money, transferring money, overdraft (Horvits, 1988), some cards in Vietnam now extend the utilities through allowing payment of goods, payment

of electricity, water, insurance, payroll have allowed users to more convenient to use when relevant needs arise The utility of the card is not only created by the card issuing bank but also depends heavily on whether the bank is participating in card alliances or whether BankNet allows a holder of the card This bank can also withdraw and make payments through machines of other banks

1.3.10 Intention to use and decide to use

According to Rogers research, Everett M (1983), when a person decides to use a product, they must intend to use the product Intention can form before or immediately when they decide to use, these two factors are always affected by environmental factors and behavioral factors of the person Therefore, businesses need to best exploit environmental factors and stimulate behavior to increase the number of people who decide to use

CHAPTER 2 CURRENT SITUATION OF QUALITY OF CARD SERVICES AT VIETNAM TECHNOLOGY AND COMMERCIAL JOINT STOCK BANK -

The Bank was licensed by the State Bank of Vietnam (SBV) No 0040 /

NH-GP to take effect from August 6, 1993 within 20 years With the approval of the State Bank of Vietnam, the Bank's operating term was extended to 99 years under the State Bank's Decision No 330 / QD-NH5 of October 8, 1997

In 1995, chartered capital was increased to VND 51,495 billion, establishing Techcombank Ho Chi Minh City branch, starting the process of rapid development

of Techcombank in big cities In 1996, Techcombank Thang Long Branch was established with Nguyen Chi Thanh Transaction Office in Hanoi Established Thang Loi transaction office under Techcombank Ho Chi Minh City Continuing to increase its charter capital to VND 70 billion In 1998, the head office was transferred to Techcombank 15 Dao Duy Tu - Hanoi Establishment of Techcombank Danang in Danang, a network of transactions covering North - Central - South

In 1999, Techcombank increased its charter capital to VND 80,020 billion and opened Transaction Office No 3 at Kham Thien Street - Hanoi

2.1.2 The introduction and development of card service Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch

Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch has

started to deploy the testing of 4 ATMs in Hanoi and Ho Chi Minh City since 1999 With the policy of making the card become a basic product in the process of implementing the item to diversify banking products and services, in 2003, the Board of Directors and the Board of Directors continued to pay attention to the development of card operations in an accounting manner, from perfecting the organizational model and arrangement cadres, enhance training and professional training to invest in material and technical facilities, software systems and equipment for card business In July 2003, Card Center under Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch was officially established In August 2004, Chairman of the Board of Directors of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch issued the Decision to change the operation model and Regulation on organization and operation of the Card Center according to the model of non-business units with 7 specialized and professional rooms; has the function of advising and assisting the Board of Directors and the General Director in the administration, management, research, application and development of card operations in the system of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch

Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch has

an extensive branch network with more than 2,000 branches and nearly 30,000 bank officers In addition, Vietnam Technology and Commercial Joint Stock Bank

- Lang Ha Branch has established correspondent relationships with 850 banks in

90 countries This is a favorable condition to meet the demands of domestic and international customers Besides, with the establishment and operation of the National Financial Switching Joint Stock Company (Banknetvn), Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch will be the main member that will connect the above banks nationwide, increasingly providing maximum utilities for customers and meeting the requirements of card payment development

2.2 Situation and quality of card services at Vietnam Technology and Commercial Joint Stock Bank

2.2.1 Status of card services of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch

2019 marked a remarkable development of Vietnam Technology and Commercial Joint Stock Bank - Lang Ha Branch card service The investment in new equipment and software program of card management system has created favorable conditions for branches under the central management unit (9000,9001,9002) to convert to IPCAS balance, develop diversify products and services and develop the network of card acceptance units At the same time, with the deployment of the new system software, the agricultural bank card business has connected the payment of Visa, Banknetvn conveniently, quickly and effectively

2.2.1.1 Domestic debit card

Techcombank's domestic debit card is a vehicle used to withdraw cash at Techcombank's ATMs, used to purchase goods and services through Techcombank's POS card readers Previously, ATM cards only performed functions

at ATMs such as cash withdrawal, account inquiry, account statement, money transfer, PIN change but when using Vietnam Technology's domestic debit card and Commercial Joint Stock Bank, in addition to the functions of the above mentioned ATM cards, cardholders can make payment for goods and services at merchants of Vietnam Technology and Commercial Joint Stock Bank Techcombank's domestic debit card also has an account overdraft function (for cards issued by IPCAS branch) that allows customers to use in excess of the card issuance account's balance The maximum overdraft limit is VND 30,000,000 in case the cardholder's account runs out of money In addition to the aforementioned utilities, Techcombank domestic debit card users also receive other benefits such as the balance on the account with demand interest, a free service and a number of other services other incentives

Additional utilities and services when using Techcombank domestic debit card include:

- Withdraw VND money from demand deposit account in VND at any ATM

of Techcombank and Banknetvn member banks anytime, anywhere

- Change the cardholder identification number (PIN)

- Be granted an overdraft limit by Techcombank's branch to allow cash withdrawal or payment for goods and services when there is no balance in the customer account

- The balance on the account is entitled to demand interest rate

- Customer information security

- Receive salaries, money transfers from home and abroad

- Get pensions, social insurance benefits

Types of limits:

- 1 day cash withdrawal limit at an ATM: Maximum VND 25 million

- Limit for one time cash withdrawal at an ATM: Maximum of VND 5 million / Min VND 50,000

- Number of cash withdrawals at an ATM: Unlimited

- Cash withdrawal limit at the counter: No limit

- Limit of 1 day transfer at an ATM: Maximum of VND 20 million

- Overdraft limit: Maximum VND 30 million

Table 2.1 DOMESTIC DEBIT CARD FEE

Currency: Dong

Reissue fee due to a damaged card

Battery re-charge fee

Reissue fee due to expiry date VND 50,000/card

Maximum withdrawal amount up to 1 day VND 25,000,000/card Maximum withdrawal amount 1 time VND 5,000,000/card

Minimum withdrawal amount 1 time VND 50,000

Maximum number of withdrawals per day Unlimited

The maximum amount of transfer is 1 day VND 20,000,000/card

3 Remittance fee in the same branch No

Fee for transferring money to a branch in the

same province or city

VND 3,000/time

Fee for transferring money to a branch in

another province or city

0.1% (at least VND 20,000 / time; Maximum of

1,000,000 VND / time) Current salary transfer fee VND 3,300

6 Discount rate (applicable to CAU) 1%/ Transaction value

7 Overdraft interest rate (applicable to

overdraft card)

1,5%/month

(Source: Tariff Techcombank)

Although the number of new domestic debit cards issued recently has been quite good, the facilities of products and services are limited, not diversified, and do

not provide value-added utilities such as paying bills , reward points for loyal customers As of December 31, 2019, the number of domestic cards issued reached 1,236,247 cards, up 97.5% compared to 2018 (up 610,369 cards) The average number of issued cards is 50,864 cards / month The transaction volume at ATM reached VND 16,626 billion, an increase of 202% compared to 2018 The average balance on card issuance deposit accounts reached more than VND 2,000 billion Some branches implemented effectively as: Da Nang (79,122 cards), Saigon (69,307 cards),

Calculation unit: Card

Chart 2.1 NUMBER OF DEBIT CARD ISSUED DOMESTIC TO 2019

(Source: Card Center - Techcombank)

2.2.1.2 Domestic credit card

Techcombank's domestic credit card is a modern, safe and convenient payment method that allows cardholders to pay for goods and services at the merchants or to withdraw cash at Techcombank ATMs nationwide Domestic credit cards have been officially launched by Techcombank since October 2004 After a period of pilot release for officials and employees at the head office and

1.200.000

1.400.000

branches achieved certain results, on May 24, 2005, the General Director of Techcombank issued Document No 2059 / Techcombank -TTT directs branches

to issue domestic credit cards to customers Domestic credit cards issued by Techcombank include:

- Personal card: Personal card is a card used by the person in whose name it

is responsible for paying those expenses Individual cards are issued to individuals who are in need and able to meet card issuance conditions Individual cards have two types: primary card and supplementary card The main card is used by the individual who applies for the issuance of the card for himself / herself and the supplementary card is the card used to share the same account with the main card, which is issued by the main card holder for other people to use and is responsible for payment all expenses incurred by the supplementary cardholder

- Corporate card: A corporate card is a card proposed by the company to be used by an individual It is issued to individuals belonging to an organization or company in the name of the card issuer and authorized to use by that individual The responsibility to pay card usage expenses to the bank rests with the company

or organization applying for the issue Corporate cards cannot issue supplementary cards

Utilities when using Techcombank domestic credit card include:

- Pay for goods and services at Techcombank acceptance points nationwide

- Cash withdrawal at Techcombank's ATM locations

- Use advance money under a certain credit limit

- Expenses for prepayment, postpaid, transactions of payment for goods and services are not subject to interest from 16 to 45 days if paid on time

- Customer service and technology to support card payment activities 24/24

- A high level of safety with the cardholder's name, picture and signature embossed and printed directly on the card

Table 2.2 DOMESTIC CREDIT CARD TABLE

Currency: Dong

1 Card issuing fee:

n

- Other Province, City 0.10 % VND 20,000 VND

1,000,000

(Source: Fee schedule of Techcombank)

The issuance of domestic credit cards still faces many difficulties due to the fact that people's cash spending habits are difficult to change, knowledge about payment by card in the population is low, people do not have accustomed to using bank money (buy first, pay later) However, the number of domestic Techcombank's credit cards issued until December 31, 2019 reached 1,429 cards, an increase of 10% compared to 2018 POS transactions reached 4,420 units, the transaction turnover reached 1,592 million VND, outstanding credit card balance reached VND 1,397 million Especially, there is no arising overdue debt, bad debt Besides some well-deployed branches such as Da Nang, Hanoi, Can Tho, Saigon there are still three branches that have implemented IPCAS for a long time but have not yet deployed domestic credit cards, Branch 6, Branch 8 and Hong Ha Branch

Unit: Card

Figure 2.1: NUMBER OF DOMESTIC CREDIT CARD ISSUED TO 2019

(Source: Card Center - Techcombank)

2.2.1.3 Connecting with Visa, Banknetvn card payment

Techcombank's ATM system has accepted international card payments under the brand Visa and Banknetvn since November 27, 2018, and has gradually affirmed Techcombank's brand in the field of cards This is the first successful step

of Techcombank in implementing a series of large projects on modernizing banking technology to enhance competitiveness in international economic integration The connection of payment of Visa and Banknetvn cards brings millions of customers using agricultural bank cards in particular and customers around the world in general with high quality utilities and services, while contributing to increasing revenues Techcombank services Only from November 27, 2019 to December 31,

2019, the total transaction amount was 1,763 complacent, the transaction amount was 3,677 million VND Average transaction is VND 97 million / day Techcombank's service fee is more than 10 million VND For the Banknetvn connection transaction, from November 27, 2019 to December 31, 2019, there were 3,600 completed transactions with the total amount of VND 3,600 million Average