Improving the customers’ satisfaction in Vietin Bank – Dinh Tien Hoang branch

The thesis focuses on factors affecting the satisfaction of customers using services at VIETINBANK - Dinh Tien Hoang branch, the limited aspects in the process f[r]

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FOREWORD 5

CHAPTER 1: INTRODUCTION 7

1.1 The neccessity of Thesis 7

1.2 Objective of the Thesis … ……… 7

1.3 Subject and Scope of Thesis … ……….… 8

1.4 Research Method ……… 8

1.5 Contribution of Research ……… 8

CHAPTER 2: LITERATURE REVIEW 9

2.1 Service 9

2.1.1 The concept of service 9

2.1.2 Characteristics of service 9

2.2 The quality of service 10

2.2.1 The concept of the quality of service 10

2.2.2 Factors affecting the quality of service 11

2.3 Customers' satisfaction 11

2.3.1 Customers' satisfaction 11

2.3.2 The relationship between quality of service and the satisfaction 12

CHAPTER 3: METHODOLOGY 13

3.1 Research framework……… ……… 13

3.2 Surveyed process……….14

CHAPTER 4: DATA ANALYSIS………16

4.1 General introduction……… 16

4.1.1 Introduction of Vietinbank……… 16

4.1.2 Branches' organization……… 16

4.1.2.1 Organization chart 16

4.1.2.2 Human resource 21

4.1.3 Branches' performance ……… … 23

4.1.3.1 Business performance 23

4.1.3.2 Other performance 26

4.2 Research result………26

4.2.1 Description analysis……… 26

4.2.2 Confirmatory factor analysis………28

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4.2.3 Pregression analysis……… 30

4.2.4 Exploitation study……….32

4.3 Assessment of customers' satisfaction……… 33

4.3.1 Customers' expectation……… …… 33

4.3.2 Customers' satisfaction……….34

4.3.3 Maintaining branches' customers……… 41

CHAPTER 5: SOLUTION FOR IMPROVING CUSTOMERS' SATISFACTION IN VIETINBANK - DINH TIEN HOANG BRANCH………44

5.1 Solution for improving customers' satisfaction……… 44

5.2.1 Professional Skills 44

5.2.2 Service quality improvement 45

5.2.3 Feedback 46

5.2.4 Information 47

5.2.5 Accessibility 48

5.2.6 Reliability 48

5.2 Direction for developing services of Vietinbank Dinh Tien Hoang branch in the period of 2016 – 2020……… 48

5.3 Proposal to Vietin Bank head office ……… 50

5.3.1 Capital – Capital mobilization 50

5.3.2 Great services development and exploitation of standing service production having advantages 50

5.3.3 Internet technology and technology application to service production 51

5.3.4 Network development 51

5.3.5 Human resource 51

5.3.6 Operation management 52

CONCLUSION 53

LIST OF REFERENCES 54

APPENDIX 1: CODE TABLE OF SCALE 55

APPENDIX 2: OFFICIAL SURVEY TABLE 57

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TABLE LIST

Table 1.1: Calculation of the number of staffs in the branches between 2011 – 2015……21

Table 1.2: Capital mobilization during 2011 – 2015……… ……… 23

Table 1.3: Results of credit performance in Dinh Tien Hoang branch during 2013-2015 24 Table 1.4 Credit growth during 2011 – 2015……… ……… 25

Table 1.5: Calculation of customers’ gender……… ……….26

Table 1.6: Descriptive Statistics of services time usage……… ……… 27

Table 1.7: Descriptive Statistics of the number of services customers use……… 27

Table 1.8: Result of assessing scale’s reliability ……… ……… 29

Table 1.9: The interretate audited results among variables………… ………30

Table 1.10: Result of analysis ……….………31

Table 1.11: Result of assessing multicollinearity………32

Table 1.12: Descriptive Statistics of factors assessing the scale of satisfaction………… 33

Table 1.13: Customers’ satisfaction……….34

Table 1.14: Descriptive Statistics of factors assessing reliability………35

Table 1.15: Descriptive Statistics of factors assessing feedbacks……… 38

Table 1.16: Descriptive Statistics of factors assessing skills ……… 38

Table 1.17: Descriptive Statistics of factors assessing approach……….39

Table 1.18: Descriptive Statistics of factors assessing information……….41

Table 1.19: Descriptive Statistics of factors assessing services quality……… 41

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FIGURE LIST

Figure 1.1: The chart of Vietin Bank Dinh Tien Hoang branch’s organization……… 17

Figure 1.2: The number of staffs in branch during 2011 – 2015………22

Figure 1.3: Human resource structure according to age……… 22

Figure 1.4 Human resource structure according to study level……… 23

Figure 1.5 Profits from services during 2011 – 2015……….27

As one of the first commercial banks in Vietnam, Vietin Bank always confirms its more competitive advantages in comparison with other banks During the process of building and growing up, Vietin Bank is always aware of the importance of customers to their existence and development The application of quality management system according to the criteria of ISO 9000 indicated the great cares from the board of directors of banks to their service quality Vietin Bank - Dinh Tien Hoang branch is a long standing one with a lot of experience

as well as its staff’s constant efforts and is regarded as one of the top branches of Vietin bank system Dinh Tien Hoang branch has won the favor of customers with its professional services as well as enthusiasm For a great development of Vietin Bank, customers’ satisfaction is the key goal The study of customers’ satisfaction has to be conducted regularly

to meet the customers’ demands The topic: “Improving the customers’ satisfaction in Vietin Bank – Dinh Tien Hoang branch” is conducted to assess the scale of customers’ satisfaction

when using the bank’s services Therefore, more effective solutions will be given to improve

their pleasance The structure of the thesis including:

Chapter 1: The necessity of Research Thesis

Chapter 2: Literature review

Chapter 3: Methodology

Chapter 4: Data analysis

Student Tran Quang Anh

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CHAPTER 1:

INTRODUCTION1.1 The necessity of Thesis

Nowadays, the trend of globalization, international and regional economic integration

is taking place strongly, with the development of science and technology and opening market, in the banking field, there has been fierce competition between Government Banks, Joint-Stock Commercial Banks and Foreign Banks provide banking services in Viet Nam’s market

In this fierce competitive environment, customers are the decisive factor in the survival of the bank The bank that gets the concern and the loyalty of the customer will win and grow Customer-focused business strategy is becoming the most importance How to give customers the best satisfaction is always the problem that banks must try their best to perform with all their abilities In addition, the satisfaction of customer will

be helpful to create loyal customers that are essential to maintain regular activity of Banks This means the responsibility for developing and maintaining relationship with the customer, making the customer satisfied is the bank’s Banks must be active in maintaining and developing this relationship Therefore, researching the satisfaction of customer to bank is an important task, which must be carried out regularly and continuously, to be able to respond promptly changes in their demands so that we can serve better our customers and make them satisfied when using the services and products

of the bank

The thesis "Assessing Factors Affect bank’s customers satisfaction" was perfomed not out the above purpose and the student hope to receive more comments to improve the

research

1.2 Objective of the Thesis

Identify the customer's desire to the bank

Create a research model that measures the satisfaction of customers based on understanding the factors that affect the customers’ satisfaction

Assess the level of satisfaction of customers for products and services of bank

Recommend some solutions to improve customers’ satisfaction to the bank

1.3 Subject and Scope of Thesis

1.3.1 Subject of Research

Customers’ satisfaction of Vietin Bank

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1.3.2 Scope of Research

The space of scope: Viettin Bank, Dinh Tien Hoang Branch

The duration of scope: Data collection from 2011-2015

1.4 Research Method

Investigation, data collection from the following sources: Questionnaire from customers, interview results from employees, bank leaders, some documents about service, quality of service, reporting data of Viettin Bank

Studying the factors affect the satisfaction and loyalty of customers in general and from

which, recommend, suggest to help Viettin Bank in particular

1.5 The practical meaning of thesis

Thesis determines the factors that affect the customers’ satisfaction in a more complete and accurate way From there, the bank will have the appropriate improvements

to increase the efficient operation of the bank and help customers always feel satisfied when using services or products of the bank

Research results are the basis for the deployment of new products and services to respond the requirement of customers

Based on the research of the satisfaction of customer with the services of Viettin Bank, Dinh Tien Hoang Branch recently, student will suggest some measures to improve customers’ satisfaction

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CHAPTER 2:

LITERATURE REVIEW2.1 Service

2.1.1 Service concept

Services are activities and results that a party (seller) can provide to the other party (buyer) and is essentially non-proprietary Service can be attached or not attached to a physical product ( “Service (economics) – www.wikipedia.org )

In fact, the offer offered by a business can range from a pure item to a pure service For specific items such as soap, toothpaste or kitchen salt, no service is required

A service-specific item is one plus one or more services to increase the likelihood of attracting buyers, especially for tangible products with sophisticated manufacturing and technology For example, a car manufacturer sells cars with warranty service, instruction for use and maintenance, delivery according to buyers, etc These services can be provided by the manufacturer or by a Intermediary specialized in that service business

An item consists of a main service that includes smaller items and services For example, an airplane passenger is buying a carriage But the trip also included a number of specific items, such as food, drinks and an airline magazine

After the same item can be a pure service For example, a psychotherapy or curling Psychotherapists provide only a single service, and the only specific thing is a clinic or a massage machine

Thus a product of a business can be a specific item or service, and may include additional services

2.1.2 Characteristics of the service

The service has basic characteristics different from other tangible products, such as invisibility, inseparability from origin, quality uncertainty In most manufacturing industries, the product is packaged and transported through intermediaries, agents, wholesalers, retailers and end-users For services, consumers may have to go to where the service is "created." That

is, the service is sold or provided to customers before they feel the real benefit of it This makes customers feel desperate to buy services, so to purchase a service or product with service, customers must be fully informed what they will have in their entirety of the process

of buying and using a product or service Therefore, the propaganda, advertising plays a very important role to guide customers to decide to buy a service

A very basic characteristic of the service is its inseparability In most cases, services are produced and consumed simultaneously, and are only completed along with the completion of consumer consumption If there are no customers yet, there is no system to create the service Because services are provided by different providers, at different times and locations, and with customer interference in service creation, service instability has created service instability It is therefore difficult to check in advance the quality of service and this has caused difficulties in quality management of the service

Another very important feature is service mix, which requires a high degree of synergy and synchronicity, which is a rational structure consisting of many related services, complementing each other in the process of creating benefits for the customer The coordination of these services together at different levels and structures will form different service arrangements The problem is that every business needs to know how to combine those different types of services to create a complete set of services that are tailored to their strengths and meet the needs of their needs Demand is specific to each target market that the business has chosen

On the other hand, because the market is constantly changing, it is imperative for businesses to design a service structure so that they can flexibly adjust to changing needs and

tastes of their customers to avoid waste New service plans are often expensive

2.2 Service quality

2.2.1 Quality of service concept

Quality of service is an important factor for the survival and development of any commercial bank ( Zeithaml et al 1996; Wirtz et al 2008) The research on the quality of banking services has been carried out for many years, resulting in both theoretical and practical developments, particularly the development and validation of service quality scales

in the banking sector in many different countries in the world

2.2.2 Factors affecting the quality of service

Quality of service is not formed from many different factors It can be said that it is a multi-faceted concept Parasuraman et al (1985) outlined ten aspects of service quality

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including (1) reliability; (2) ability to respond; (3) service capacity; (4) access, (5) courtesy, (6) communication, (7) credibility, (8) security; (9) understanding customer; and (10) visible means From these 10 aspects, further research is drawn on five key factors (eg, Parasuraman

et al., 1988, 1991) of service quality including: (1) Reliability: The ability to perform the right service and on time (2) Responsiveness: Express the desire and willingness of the service staff to provide timely service to customers (3) Assurance: The professionalism of the service staff (4) Empathy: Show employee interest to the customer (5) Visible: clothing, appearance

of staff and service facilities So it can be seen that service quality is a multifaceted concept, that is a composite indicator of different elements In different service areas it is measured by

is considered as a particular variable in relation to quality of service components (Durvasula

and Mehta, 1999; Chow and Luk, 2005; Mostafa, 2005; Zarei et al., 2012)

2.3.2 The relationship between quality of service and satisfaction of customers

Quality of service and satisfaction are two different but closely related concepts in research on service quality services that lead to satisfaction The reason is the quality of service involved To the delivery of the service, while the satisfaction was only appreciated after using the service

Customer satisfaction as a result, quality of service as a cause, satisfaction is predictive nature, expectations; Quality of service is an ideal standard Customer satisfaction is a general concept, expressing their satisfaction when consuming a service Meanwhile, service quality focuses on specific components of the service Although quality of service and satisfaction are interrelated, few studies focus on verifying the level of interpretation of service quality components for satisfaction, particularly for each Specific Service Industries Studies have concluded that service quality is a precondition for satisfaction and a major factor in satisfying satisfaction

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Quality of service is a factor that greatly affects customer satisfaction If a service provider gives customers quality products that meet their needs, that network provider is initially making the customer happy Therefore, to improve customer satisfaction, service providers must improve the quality of service In other words, quality of service and customer satisfaction are closely interrelated, in which the quality of service is what precedes and decides customer satisfaction The causal relationship between these two factors is a key issue

in most studies of customer satisfaction If the quality is improved but not based on the needs

of the customer, then the customer will never be satisfied with the service Therefore, when using the service, if customers feel the service is high quality, they will be satisfied with that service Conversely, if customers feel the service is of low quality, dissatisfaction will arise

In the field of service quality research and customer satisfaction have been the systematic researchers for many years Including some well-known models such as the Quality Distance Model (Parasuraman et al., 1985), the SERVQUAL model (Parasuraman et al., 1988) In the models above, the SERVQUAL model is a research model applied in the retail and service sectors, including the following:

Reliability: The reliability of the service agreements provided by the business or organization such as: timely, timely, error-free

Feedback: is to provide feedback or contribute ideas to develop the information obtained The process of soliciting customer feedback about a particular business, product or service

Skills: the ability or ability to perform a masterpiece of one or a series of actions based

on knowledge (knowledge or experience) to produce the desired result

Accessibility: All that is required is what the business must do to satisfy the customer's needs and expectations, ie serve the customer the way they want to be served and Do the things necessary to keep the customers you are

Information: Signals, acquired, understood and judged to be helpful in business decision-making

Service quality: meet the expectations of customers, satisfy the needs of customers Consequently, quality is determined by the customer, as the customer desires Because the demand of customers is diverse, so the quality will also have many levels depending on the customer

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CHAPTER 3 METHODOLOGY

3.1 Proposed research framework

The purpose of the survey is to identify the level of satisfaction of customers using the services of VIETINBANK branch Dinh Tien Hoang Therefore, the object of the survey is that the customer is using the service at the branch

There are many different models in the world to measure customer satisfaction Currently companies in the service sector often measure customer satisfaction in accordance with the criteria of the RATER model and apply the model SERVQUAL The nature of the study also performs customer satisfaction surveys through RATER criteria but is divided according to student research requirements Research framework according to the following criteria:

- Reliability: The ability of the branch to fulfill the promise of reliable and accurate service

- Feedback: Staff feedback on customer requests

- Skills: Skill is defined as the proficiency of a kind of knowledge to solve their tasks

In the banking profession, the employees are always required high professional skills

- Accessibility: Customer's access to the service provided at the branch

- Information: Information is an important factor in a turbulent economy, and having information properly is essential to every customer

- Service quality: Quality of service is also one of the determining factors for customer satisfaction

H1

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3.2 Survey Process

Step 1: Building questionnaire:

- Seting up a rough questionnaire based on the information to be collected in the theoretical model and related satisfaction studies

There are 25 questions including 6 factors effect the customers’ satisfaction

Factor 1: Reliability: 7 questions

Factor 2: Feedback: 4 questions

Factor 3: Skills: 3 questions

Factor 4: Accessbility: 5 questions

Factor 5: Information: 3 questions

Factor 6: Service quality: 3 questions

- Selecting and correcting questions based on the teacher's input Interviewed 10 random clients to test the clarity of the questionnaire, thereby recording their initial idea of the product and service of the branch and the customer's desire for the branch

- Editing and finalizing the questionnaire, then submit an official questionnaire

Step 2: Determining the number of samples needed and the scale for the survey:

- The sample size is 142 samples Currently, according to many researchers, the issue of how much sample size, how large is still unclear Furthermore, the sample size depends on the estimation methods used in the particular study According to some studies in the world, the representative sample size selected for the survey would be appropriate if the sample size was 5 for an estimate Survey models in the subject included 7 independent variables with

25 observation variables Therefore the required sample size is 25 × 5 = 125 or more So the sample size used in the survey is 142 samples should be representative of the sand is still guaranteed for the survey ( “Research Variables” – Saul Mcleod, 2008; "Independent

Variable." In Encyclopedia of Research Design Neil J Salkind, editor (Thousand Oaks,

CA: SAGE, 2010)

- The scale is used in the satisfaction survey is the Likert scale It consists of 5 levels of popularity from 1 to 5 to find out the rating of respondents Therefore, the questionnaire

designed from 1 is "fully agree" to 5 is "totally disagree"

Step 3: Sending survey form to customer:

210 questionnaires are sent to customers at the counter and via email with the support of the customer service department and the students themselves The customer list received a

randomly selected questionnaire on the bank's customer database

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Step 4: Contacting the customer to track the answer:

After 10 days, if not received feedback from the customer, students will call the customer reply For questionnaires placed at transaction counters, customers can make direct

replies and send them back to their employees immediately

Step 5: Receiving feedback from customers:

There were 157 questionnaires received (121 received at the counter and 36 received by email) with a response rate of 74.8%, of which 15 were rejected for invalidation Therefore

the number of samples left for analysis is 142 votes

Step 6: Clearing data processing using SPSS analysis tools:

● Data content: The questionnaire data is designed with 25 measures of factors that bring customer satisfaction and four scales of customer satisfaction when dealing with a bank include four main sections of coded questions

- Some general information about customers

- Factors that affect customer satisfaction

- The level of customer satisfaction

- Recommendations of customers

• Data Encoding: After collecting the appropriate sample size, students used the SPSS tool to analyze the data with encoded scales (Appendix 1)

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CHAPTER 4:

DATA ANALYSIS

4.1 General introduction

4.1.1 Introduction of Vietin Bank

VietinBank was established in 1988 and was separated from Vietnam national Bank It plays a pillar role in Vietnam bank sector

It has 155 branches nationwide and more than 1000 transaction agencies as well as 9 independent audit companies including Finance leasing company, Loan managing and asset exploting company, Commercial and Industrial stock company, Funds managing company, jewellery company, labour nunion company, international transfer company, VietinAviva company and 5 career units including IT center, card center, human resource training and developing center, Bank Star I hotel and Bank Star II hotel- Cua Lo

As the foundation member and the joint partner of INDOVINA bank

It has the dealer relationship with more than 900 banks, owns financial institutions in more than 90 nations and territories in all over the world

As the first Vietnam’s banks was awareded the certification of ISO 9001:2000

Being a member of Vietnam Bankers Association, Asian Bankers Association, Global Interbank Financial Telecommunication Association (SWIFT), Visa and MasterCard International

As the pioneer in applying modern technologies and electronic commerce in Vietnam, meeting the requirements of management and business

As the first bank in Vietnam to have branch in Europe, marking the significant development of Vietnam’s finance in region and global market

Constanly doing research, upgrading productions, and services as well as creating new

productions to correspond with the highest demands from customers

4.1.2 Branch’s organization

4.1.2.1 Chart of branch’s organization

Dinh Tien Hoang branch’s organization is showed in the following chart:

g departme

nt

Transact ion agency

05

Transact ion agency

04

Transact ion agency

03

Transact ion agency

02

Transact ion agency

01

Technolo -gical services

Business customer services

Administ ration departme

nt

Risk manage- ment

Business customer services relationshi

p

Technologi -cal relationshi

p

Fund manage- ment

General planning departme

nt

DIRECTOR

VICE DIRECTORS

Customer relationship department

Risk management department

management department

Dependent unit

A deputy director is an assistant to a director, operating one or more specific branches of

a branch according to the arrangement of the director, responsible to the director and the law

on assigned tasks ; On behalf of the manager relations with related parties solve the work

• The customer relations department has the following tasks:

Developing and implementing policies and guidelines to implement customer policy, developing market and market share; deploying existing products

Identifing the target market, target customers; develop and implementing monthly/quarterly/yearly sales program and marketing solutions, receiving customer requests and feedback

Understanding the needs of customers; Consulting with customers to choose credit products, banking services; Providing, guiding and answering customer inquiries about regulations, credit procedures, banking services, assuring effective customer service with high professionalism

Responsible for setting up, maintaining and developing cooperative relations with customers and selling products of the bank, negotiating to expand the areas of cooperation with customers; Comprehensive customer care, ensuring customers are served full with increasing quality

Directly setting limits, credit limits, and credit proposals Tracking and managing customer activity To supervise the process of using loans and assets to secure loans Urge customers to pay principal and interest (including those transferred outside the table) Proposing to restructure the debt repayment period, keeping track of the collection of principal, interest and fees (if any) until the loan contract is finalized Processing when customers do not meet the credit conditions Timely detecting of loans with risk signs and proposed handling

Classifing, detecting of risk Making analysis reports, proposing measures to prevent and handle risks Carrying out internal credit rating for customers according to regulations

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and commenting on provisioning for credit risk

To receive and examine the dossiers of request for interest exemption/reduction, propose the interest exemption/reduction and transfer to the Risk Management Sub-Division in accordance with the regulations Compliance with the bank's credit line limits for customers

Tracking customer usage limits

• The task force has the following tasks:

Directly performing the operation and management of lending, guaranteeing for customers in accordance with regulations and procedures of VietinBank and its branches Directly managing accounts and deal with customers

Making a risk provisioning calculation based on the classification results of the Customer Relationship Department in accordance with the regulations of VietinBank; To send results to the Risk Management Division for review and submission to competent authorities for decision

Taking full responsibility for the safety of the Department's operations; Strictly following the internal control procedures before the transaction is carried out Customer monitoring complying with the terms of the credit agreement

To carry out money laundering prevention against transactions arising under the regulations of the State and VietinBank; Detecting, reporting and dealing promptly with suspicious transactions in emergency situations

The treasury service and management team is responsible for: Directly performing stock management and entry/exit fund operations To propose and advise the branch director on measures and conditions for ensuring the safety of warehouses, funds and monetary security; developing of treasury services; To strictly complying with the rules and procedures of treasury management To be fully responsible for ensuring safety of treasury and currency

security, ensuring security of assets of VietinBank Branch and customers

• Risk management is responsible for:

Advising on proposing policies and measures to develop and improve the quality of credit operations Managing, monitoring, analyzing and assessing the potential risks to the branch's credit portfolio; Maintaining and applying credit rating and rating systems to portfolio management

Studying and proposing to leaders to approve limits and adjusting limits, structure and credit limits for each branch, each group and each client in accordance with the direction of VietinBank and the actual situation at the branch To check the implementation of the credit

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limits of the relevant departments and proposing handling of any violations

Proposing to the director of the plan to reduce the bad debt of the branch, the customer and the plan to restructure the debt of customers as regulation

Supervising debt classification and risk provisioning; To sum up debt classification results and make risk provisions and send them to the accounting and finance sections for making balance according to regulations

Collecting and managing credit information, reporting on credit activities and credit quality of the branch; Make a report analyzing the status of loan security assets of the branch Carrying out bad debt handling

Participating in the work of credit risk, operational risk, money laundering prevention Being an important role in the management of ISO quality system It is the focal point in coordinating the process of managing the quality system according to ISO standards at the branch Developing and proposing to the Director the improvement program of quality management system; Measuring the level of satisfaction of customer satisfaction

Developing plans and coordinating implementation of implementation plan, inspection, assessment and maintenance of quality management system at the units in the Branch

Collaborating with organizations to evaluate the certification of quality management

system maintenance; To sum up results of the branch system's quality evaluation

• The internal management department has the following tasks:

The Accounting and Finance Department has the following tasks: - To manage and carry out detailed accounting work, general accounting; Carrying out post-audit work on accounting and financial activities of the branch (including transaction offices); To perform the task of managing and supervising the finance; Implementing customer information management Proposing consultancy to the branch director on guiding the implementation of financial and accounting regimes, formulating regimes and measures for asset management, norms and financial management

The Integrated Planning Division is responsible for: Collecting information, consulting, developing development plans and business plans; Organizing and monitoring the implementation of the business plan; Assists the manager in managing and evaluating the overall performance of the branch Proposing and organizing the implementation of capital sources; Directly conducting foreign currency trading; Introducing products mobilizing capital, products trading foreign currencies with customers; Supporting other business

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departments to sell products, providing market information, cost prices; To be responsible for managing the coefficients of safety in business activities, ensuring the payment capacity and the foreign exchange status of the branch

The Administrative Organization Department has the following tasks: To lead the consultancy, suggest and assist the Director in implementing the organization and personnel work and developing the human resources at the branch Letter of the clerical work; The focal point for organizing or representing branches in communication relations, receiving organizations and individuals inside and outside the VietinBank system; To inspect, supervise, synthesize and report on the observance of labor regulations, internal rules of the agencies .; Formulating, announcing the work program and schedule of the board of directors to the relevant units; The focal point for the implementation of the service of meetings and conferences organized by its branches or assigned by VietinBank to its branch;

To advise and propose the establishment of rules and regulations on office work and administrative management measures Carrying out the advisory, management, exploitation and use of assets of the branch; Ensuring full material condition and safe, civilized and clean

working environment for the whole branch

• Subordinate unit has the following tasks:

Directly dealing with customers and providing banking services Transaction offices conduct direct transactions with customers at transaction offices To receive all inquiries of customers to the department to solve

4.1.2.2 Human Resource

Human resources are always the most important factor for the development of an organization or a business Same thing to VietinBank, VietinBank always considers human factors as the decisive factor for success under the motto "each VietinBank staff is a competitive advantage" in terms of both professional capacity and moral qualities The staff

of VietinBank Dinh Tien Hoang is always one of the strong team in terms of both quantity and quality Below is a table showing the number of employees working at the branch through

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Source: [1,2,3,4,5]

Table 1.1: Calculation of the number of staffs in the branches between 2011 – 2015

Figure 1.2: The number of staffs in branch during 2011 – 2015

Source: [1,2,3,4,5]

Based on the table and illustrations above, it is clear that the human resources of the branch in the past five years (2011 - 2015) tend to increase steadily over the years This proves that the branch is in the process of delivering business services that require more labor Every year, the number of employees increases from 5 to 10 people The reason for this is that: VietinBank is increasingly diversified in services as well as business areas The market is increasingly expanding, the number of customers who wish to use the service also increased Recruiting more labor each year is necessary to provide our clients with the best services, in the widest possible range

According to the most recent statistics, the branch's human resources structure in 2013

by age and level are shown in the following two graphs:

Figure 1.3: Human resource structure according to age

It can be seen that employees in VietinBank Dinh Tien Hoang mainly in the age of

20-30 (74.79%) are young working class, in the right direction with the goal of building modern human resources system Make use of young power very much for the development of VietinBank Dinh Tien Hoang In addition, college graduated staffs occupy the majority of the human resources (72.07%) This is the target labor that VietinBank Dinh Tien Hoang aims at

in the work of improving human resources, building branch development

4.1.3 Branches' performance

4.1.3.1 Business performance

Capital raising activities

The branch's capital mobilization over the past five years has achieved commendable results The amount of capital mobilized in the next year is always higher than the previous year The structure of capital mobilization is moving in positive direction With the low cost

of capital mobilized, the profit margin of the branch is always high, creating huge profit for the company As well as attracting residents 'and business organizations' financial resources, financial institutions and branches have also strengthened control over liquidity and security

of their branches

Table 1.2: Capital mobilization during 2011 – 2015

Unit: billion dong,%

3

4,949.5

By 2013, the growth rate of capital mobilization has decreased compared to 2012, down 15% respectively 455 billion In the period of 2013 - 2015, the capital mobilization of the branch increased rapidly from 3.016 billion to 4.949 billion, 64.1% respectively

• Credit activities

Credit activity is an important activity in the bank's operations Normally in the European countries this activity usually contributes 60% of the bank's profit structure But in Vietnam, this activity is up to 80-90% Recognizing the importance of this activity, from the first day of its establishment, the branch has accelerated the credit growth towards sustainable growth and reduced risk Parallel with building credit growth is the construction of management system, risk management During the development process, the credit growth

rate and scale of the branch was developed in accordance with the direction of the State Bank

Table 1.3: Results of credit performance in Dinh Tien Hoang branch during 2013-2015

Unit: billion dong, %

Credit quality

6 Collection of off-balance sheet

result as planned by Vietin Bank

Table 1.4 Credit growth during 2011 – 2015

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Credit growth is maintained at a good growth rate In 2011, the branch raised VND 2.570 billion and allocated VND 1,410 billion for credit, accounting for 54.9% By 2012, the amount of capital for credit growth has increased rapidly to VND437 billion, equivalent to 31% of 20011 In 2013, total outstanding loans tend to decrease compared to 2012, down 15.6% compared to 2010 and speed Credit growth will continue to fall by 4.9% in 2014 In

2015, credit will show rapid growth Total outstanding loans increased from VND 2,239.6 billion in 2014 to VND2,524 billion in 2015, equivalent to 13%

4.1.3.2 Other performance

Attaching the development to the common interests of the society, VIETIN BANK Dinh Tien Hoang is always involved in many community activities, wish to contribute to a better life and more meaning Some activities include:

• Acompany and Support the exam season, Green summer

• Awarding scholarships to disadvantaged students, excellent students

• Visiting and giving gifts to poor patients, disadvantaged children, the elderly and

street children

• Participating in activities to support flood victims, community blood donation

activities

These results of social activities above are remarkable achievements in line with the direction

of the authorities, contributing to building image of a VIETINBANK that always

accompanies the common interests of the community and society

4.2 Research results

4.2.1 Description analysis

Sex of customers using services at VIETINBANK Dinh Tien Hoang branch

Table 1.5: Calculation of customers’ gender of the customer

It is based on the data table, we found that clients of the branch were mostly female, accounting for 67.6% of the 142 respondents

Frequency Percent Valid Percent Cumulative Percent

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27

Customer service time at the branch:

Table 1.6: Descriptive Statistics of services time usage

Figure 1.5: Profits from services during 2011 – 2015

Looking at the chart above, we see that the number of customers with trading time over

3 years accounts for 70.42% New customer transactions in the year accounted for 4.93%.Customer service products used in VIETINBANK branch Dinh Tien Hoang

Table 1.7:

Time (year)

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Descriptive Statistics of the number of services customers use

of utility products for them An average of 0.57 indicates that more than half of the surveyed customers use this product

4.2.2 Confirmatory factor analysis

➢ Verify scale reliability

Cronbach's Alpha is a statistical test that checks the tightness and correlation between observational variables This involves two aspects: the correlation between the variables themselves and the correlation of the scores of each variable with the overall score of each variable of the answer Accordingly, only variables with a Corrected Item-Total Correlation greater than 0.3 and having Alpha coefficients greater than 0.6 are considered acceptable and

Scale Variance

if Item Deleted

Corrected Item-Total Correlatio

n

Cronbach's Alpha if Item Deleted

Cronbach alpha

48.49 48.61 48.44 48.55

48.38 48.30 48.35

48.16 48.22 48.17 47.30 48.02

48.29 48.07 48.13

48.18 47.87

169.411 168.407 162.543 165.413 164.979 163.314 161.390

165.713 167.489 165.624 166.193

164.280 164.468 164.284

164.732 165.378 166.425 163.461 163.609

164.448 164.222 164.182

167.328 166.523

.621 591 680 685 728 742 756

.756 673 750 744

.813 757 785

.702 759 607 511 741

.768 729 773

.639 645

.961 961 961 961 960 960 960

.960 961 960 960

.960 960 960

.960 960 961 964 960

.960 960 960

.961 961

72 0.72 0.72

00.72

.7

2 0.72

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Looking at the table above, we find that the cumulative correlation coefficients of all observed variables are greater than 0.3, indicating that the scale is good and that the correlation is high

** Correlation is significant at the 0.01 level (2-tailed)

All variables have sigs <1% so they have a very close relationship Because the function

of the regression function can be realized

Regression analysis: Regression analysis will determine the relationship between the dependent variable (satisfaction level) and the independent variables (reliability, feedback, skill, accessibility, This helps us to predict the degree of dependent variable when we know the value of the independent variable

Table 1.10: Result of analysis

Coefficients (a)

Coefficients

Standardized Coefficients

-.107 088 072 077 073 073 069

.332 012 112 059 099 369

.01 000 04 03 02 02 000

According to the results, all six factors have a positive impact on customer satisfaction The four most influential factors are DPH (feedback), KN (skill), DTCC (accessibility), TT (information) Here is the results table: