The factors affecting customer satisfation in retail banking at vietnam maritime commercial joint stock bank

As an officer of Maritimebank and directly operating in the field of service quality, with the enthusiasm to improve the quality of this activity to benefit both customers and Maritimeba

Cohort 2016 – 2018

MASTER THESIS

“THE FACTORS AFFECTING CUSTOMER SATISFATION IN RETAIL BANKING

AT VIETNAM MARITIME COMMERCIAL JOINT STOCK BANK”

Advisor: PhD DAO TUNG Author: TRAN THI THAO

Hanoi, 05/2018

ACKNOWLEDGEMENT

With the approval of the International Faculty of the National University, the University of Nantes and my teacher, PhD DAO TUNG, I have chosen the subject of the research "THE FACTORS AFFECTING CUSTOMER SATISFATION IN RETAIL BANKING AT VIETNAM MARITIME COMMERCIAL JOINT STOCK BANK”

To complete this thesis, I would like to express my deep gratitude to all the teachers were enthusiastic teaching and guidance during my study, research and training at the department

I would like to deeply thank our teacher - PhD DAO TUNG who guided me access

to research topics and find out the best solution for this study He has given us a very sincere affection, warmth, an attitude to work very carefully, exemplary I could not have imagined having a better mentor than her my graduation topic

Although my work is very busy, I always try my best to complete the thesis However, the first time doing an academic research brings me from this challenge to another one So it

is impossible to avoid all difficulties in doing the research So I would like to receive valuable feedback from the teachers and colleagues to my study in order to get my thesis completed

Last but not least, I also would like to express my special thanks to my family for their support during my two years studying in this program as well as during the last highly intensive time for this thesis

Sincerely thank with my best regards,

Hanoi, May, 2018 Author: Tran Thi Thao – FBA8

TABLE OF CONTENTS

ABBREVIATIONS 6

LIST OF TABLES 7

LIST OF CHARTS 7

LIST OF DIAGRAMS 7

ABSTRACT 8

INTRODUCTION 9

1 Rationale for theResearch 9

2 Overview of research situation 10

3 Research Objectives 14

4 Research Subjects 14

5 Research Scopes 14

6 ResearchQuestions 14

7 Research Methods 15

8 Structure of the thesis 15

CHAPTER 1 LITERATURE REVIEW 16

1.1 Banking services 16

1.1.1 The concept of banking services 16

1.1.2 Characteristics of banking services 17

1.1.3 Types of banking services 18

1.2 Quality of banking services 20

1.2.1 The concept of quality of banking services 20

1.2.2 Criteria for measuring the quality of banking services 22

1.3 Customer satisfaction 22

1.3.1 The concept of customer satisfaction 22

1.3.2 The relationship between quality of service and customer satisfaction 23

1.3.3 Factors that affect customer satisfaction 23

1.4 Models of measuring the quality of banking services 27

1.4.1 SERVQUAL Model 27

1.4.2 SERVPERF Model 28

1.4.3 BANKSERV Model 28

1.4.4 JOHNSTON Model 29

1.4.5 BSQ Model of Bahia and Nantel (2000) 31

1.4.6 Model of Sureshchander et al (2001) 31

1.4.7 SYSTRA - SQ Model of Aldlaigan and Buttle (2002) 32

1.4.8 CBSQ Model of Xin Guo et al (2008) 32

1.4.9 Model of Kumar et al (2009) 33

1.4.10 BANQUAL-R Model of Tsoukatos and Mastrojianni (2010) 33

CHAPTER 2 THE STATUS OF THE QUANLITY OF BANKING SERVICES AT MARITIMEBANK 34

2.1 Overview of Vietnam Maritime Commercial Stock Bank 34

2.2 Quality assurance services at Maritimebank 35

2.2.1 Training programs, communication and evaluation, quality control services at Maritimebank 35

2.2.2 Current status of service quality at Maritimebank 37

CHAPTER 3 MODEL, HYPOTHESIS AND METHODOLOGY 43

3.1 Research Model 43

3.2 Research process 44

3.3 Data sources 46

3.3.1 Secondary data 46

3.3.2 Primary data 46

3.4 Research Methods 46

3.4.1 Qualitative research methods 46

3.4.2 Quantitative research methods 48

CHAPTER 4 RESEARCH RESULTS 54

4.1 Results of qualitative research 54

4.1.1 Results of expert interviews 54

4.1.2 Results of personal interviews 55

4.2 Results of quantitative research 55

4.2.1 Results of sample analysis 55

4.2.2 The results of the scale evaluation 57

4.2.3 Analysis results 61

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 67

5.1 Conclusions 67

5.2 Recommendations 67

5.2.1 Enhancing the capacity of the bank staff 68

5.2.2 Ensuring the fee of service are reasonable 69

5.2.3 Ensuring credibility in the transaction 70

5.2.4 Invest in upgrading facilities, equipment, dresses for employees 70

5.3 Limitation of reasearch 71

CONCLUSION 72

REFERENCES 73

APPENDIX 01 - CONTENTS OF EXPERT INTERVIEWS 76

APPENDIX 02 - CONTENTS OF IN-DEPTH INTERVIEWS 81

APPENDIX 03 - QUESTIONNAIRE FOR SURVEY 84

APPENDIX 04 - DATA RESULTS 88

ABBREVIATIONS

ATS Access to Services

CFA Confirmatory Factor Analysis

CRE Credibility

EFA Exploratory Factor Analysis

FSE Fee of the service

SAT Customer satisfaction

SEM Linear Structure Model

STC Staff Conduct

WTO World Trade Organization

LIST OF TABLES

Table 3.1 A summary of research hypotheses

Table 3.2 Summary of encoded scales

Table 4.1 Results of expert interviews

Table 4.2 Statistics of demographic characteristics of the surveyed subjec

Table 4.3 Results of the Exploratory Factor Analysis (EFA)

Table 4.4 Summary of measurement results

Table 4.5 Summary the average value of each scale

Table 4.6 Pearson Correlation

Table 4.7 Regression analysis

Table 5.1 Summary the results of the research hypothesis testing

LIST OF CHARTS

Chart 2.1 Comparison of service quality between banks in 2017

Chart 2.2 Comparison of Brand image of Maritimebank in third quarter of 2016 and

third quarter of 2017

Chart 2.3 Compare Maritimebank's favorite level of customer with other banks in

2017 Chart 2.4 Compare the Maritimebank Brand image rating to other banks in 2017

Chart 2.5 Score of service quality of Maritime Bank in 2016 - 2017

LIST OF DIAGRAMS

Diagram 1.1 BANKSERV Model of Avkiran (1994)

Diagram 3.1 Research Model of the Thesis

Diagram 3.2 The research process of the Thesis

Key words:

Banking, Customer service, Service quality, Customer Sactisfaction, Performance

measurement, Retail banking, Bankserv

INTRODUCTION

1 Rationale for theResearch

Customers are the decisive factor in the success of any industry and Banking is no exception In the increasingly competitive environment, banking services do not seem to be specialized, leading the market, the quality of service is the way to bring customers closer to the bank

Vietnam's economy is developing strongly and actively integrating into the world economy The commercial banks system has also developed remarkably and along with the competition between banks, between banks and other financial institutions This competition requires banks to have appropriate business strategies and constantly expand and improve the quality of services Developing retail banking is the trend of commercial banks around the world Especially for

a booming economy like Vietnam to survive and develop in a sustainable manner, Today's commercial banks are aiming at strengthening and developing their customers, especially individual, household, small and medium enterprises Retail banking is always considered as a core activity, from which the bank can expand its business activities Facing competition and international integration requirements, commercial banks need to develop and improve their competitiveness in terms of retail banking quality; This activity has become a core activity to meet the increasing demand of society

For Vietnamese commercial banks, despite the perceived importance of service quality and most of commercial banks have applied many positive measures to implement this type of service and the first step is quite positive However, in general, the quality of services in most commercial banks in Vietnam, including Maritime Bank, has not met the expectations, many of these commercial banks are still largely formal, lacking in form, and not even rightly centered The issue now is to study the factors that affect customer satisfaction on service quality, thereby clarifying the limitations and causes for practical action to improve the customer satisfaction As

an officer of Maritimebank and directly operating in the field of service quality, with the enthusiasm to improve the quality of this activity to benefit both customers and Maritimebank, I

chose the topic: “The factors affecting customer satisfaction in retaill banking at Vietnam Maritime Commercial Joint Stock Bank” as my Master's thesis on Finance, Banking and

Insurance

2 Overview of research situation

So far, there have been many domestic and foreign studies on the quality of banking services, customer satisfaction on the quality of banking services and the factors that affect customer satisfaction on the quality of banking services Such as:

Necmi Kemal Avkiran (2002) developed the BANKSERV banking service quality measurement model with 27 initial observations of six factors: Staff conduct, Credibility, Communication, Access to teller services, Responsiveness, Access management branch based on the SERVQUAL model by Parasuraman et al (1985) to measure the quality of retail banking services at Australian bank branches The results of data collection from 971 individual customers have been using the services at the bank branches, The analysis shows that four factors affect the quality of retail banking in Australia: (1) Staff conduct, (2) Credibility, (3) Communication, (4) Access to teller services Although research has identified four factors that affect the quality of banking services, Avkiran's research has not yet revealed the importance of each factor At the same time, the author's research shows that the BANKSERV model has not been expanded on the basis of segmentation of customers according to customer demand in combination with other Socio-Economic factors

Kamilia Bahia and Jacques Nantel (2004) developed a service quality measurement model BSQ (Banking Service Quality) based on the combination of 10 service quality components of Parasuraman et al (1985) and the 7Ps Mixed Marketing methodology to measure the quality of service experience for different types of banking services in Canada By using the Exploratory Factor Analysis(EFA) through a database of 225 French-speaking individuals using different types of banking services in Canada, The results show that six factors affecting the quality of banking services in Canada include:(1) Effectiveness and assurance, (2) Accessibility, (3) Fee of service, (4) Tangibles, (5) Service portfolio, (6) Reliability All six factors of the BSQ model are more reliable than the SERVQUAL model However, as the BSQ model was developed to conduct a survey of French-speaking clients using Canadian banking services, it may not be suitable for customers who are using the other languages This is the limitation of the study Abdullah H Aldlaigan and Francis A Buttle (2007) developed the SYSTRA-SQ model based on the Nordic model of Gronroos (1982) to measure the quality of retail banking services

in the UK Using the Exploratory Factor Analysis(EFA) and analysis of ANOVA variance by

collecting data from 975 individual customers who have been using banking services in the UK, the results show that: The SYSTRA-SQ model has four factors that affect the quality of banking services: (i) SSQ - System Service Quality; (ii) BSQ – Behavioural Service Quality; (iii) MSQ - Machine Service Quality; (iv) STA – Service Transactional Accuracy The results also show that the criteria and scales of the SYSTRA-SQ model are highly reliable and can be used to measure service quality in the banking industry

Xin Guo et al (2010) also developed the CBSQ (Chinese Banking Service Quality) model based on the SERVQUAL model and in-depth interviews with 18 bank managers to measure quality of service of wholesale banks in China Data were collected by surveying 259 individual customers Through the Exploratory Factor Analysis(EFA) and Confirmatory Factor Analysis (CFA), The results show that four factors affect the quality of banking services: Reliability, Human Resources, Technology, Communication Compared to the Nordic model of Gronroos (1984), the above four factors have two factors: "Reliability" and "Human resources" are part of " Functional quality"; two factors “Technology” and “Communication” are part of "Technical quality” The results also show that the CBSQ model has only been developed for the context of financial markets in China and may not be suitable for the context in other markets

Noel Yee-Man Siu and Jeremy Chi-Wah Mou (2011) used the SERVQUAL model developed by Zeithaml et al (2000, 2002) to analyze factors affecting customer satisfaction in quality banking services in Hong Kong as well as their intended use in the future Five factors are identified: Reliability, Effectiveness, Security, solving problems and safety Results show that all factors other than "Security" are important in determining overall service quality perception

“Reliability, solving problems and safety” have a significant impact on customer satisfaction; Not only that, but both "Safety" and "Effectiveness" are significantly related to consumer behavior in the future

Kari Pikkarainen et al (2013) used the EUCS model to examine customer satisfaction when using banking services in Finland A survey was conducted with a sample size of 268 individual customers conducted using convenient sampling at over 40 commercial banks in Finland The survey found three factors that affect customer satisfaction on the quality of banking services in Finland: Ease of use, accuracy and safety The results show that the EUCS model can be used to assess customer satisfaction in terms of quality of banking

services among individual customers rather than traditional models when evaluating service quality as SERVQUAL model of Parasuraman et al (1988) and SERVPERF model of Cronin and Taylor (1992)

In Vietnam, up to now there have been a number of studies on the quality of banking services, customer satisfaction on the quality of banking services or the factors that affect customer satisfaction on quality of banking services

Tran Hong Hai (2014) proposed a model of research by modifying the SERVQUAL scale

of Parasuraman and applying the theory of SERVPERF model by Cronin and Taylor (1992) to study factors affecting the satisfaction of customers on quality of ATM card services at Vietcombank - Vinh Long branch Author have validated and modified the research model through: Cronbach's Alpha coefficients, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and the Linear Structure Model (SEM) with a sample size of 779 customers using ATM card of Vietcombank - Vinh Long branch by convenient sampling method to build scale through AMOS22.0 The results show that customers' satisfaction about the quality of ATM card services at Vietcombank - Vinh Long Branch is influenced by 4 factors: price, network, empathy and reliability

Dinh Thi Hoa and Tran Thi Bich Ngoc (2014) used a combination of BANKSERV and SERVQUAL models to study the quality of banking services in Bien Hoa City The sample was

50 customer at Bien Hoa Agribank-Thong Nhat Transaction Office and 500 questionnaires were distributed to customers of banks throughout the city The study uses a variety of Linear validation models, so the data is very convincing, and the authors also confirm the current state of service quality of banks Factors such as: Staff, convenience or service at the counter should be improved The authors have also proposed a number of highly applicable and feasible solutions However, research is lacking in pointing out that: customer loyalty is not only affected by quality

of service but also many other important factors such as: Barriers to change, consumer behavior, competitive environment, marketing

Vo Thi Anh Tuyet (2016) uses qualitative research methodology, based on the opinions of eight managers of the Bank for Investment and Development of Vietnam and 10 close customers

of this bank The main research model used was BANKSERV, based on the development of the SERVQUAL model variables The author has pointed out that "Empathy" and " Staff conduct"

have the greatest influence on customer satisfaction; However, individual proposals for improvement of service quality are still theoretical, not suitable with the actual operation of Quang Ngai branch The data collected as the basis for analysis only in the random customers of the Quang Ngai branch, the analysis index is not very accurate In addition, the author uses a qualitative analysis that is subjective, so the results of this study are not really practical

Phan Thanh Hai and Mai Thi Thuong (2016) studied factors influencing customer satisfaction with services at the Bank for Agriculture and Rural Development of Quang Nam The author has developed a model based on SERVQUAL model of Parasuraman et al (1988), combined with studies by AvKiran (1994), Zekiri (2011), Babakus and Mangold (1992), Durvasula and Mehta (1999) The sample of 200 customers using the service at the bank recently The results show that: the ability to meet customer needs, security, facilities and reliability are factors that have a positive relationship with the satisfaction of customers when using the services

at Agribank Quang Nam Based on the results of the study, the author provides some suggestions for bank managers in finalizing a number of policies that will further improve customer satisfaction with banking services in next time

Vu Phan Thu Giang (2015) studied the factors affecting individual customer satisfaction

on credit service quality at Thinh Vuong Commercial Joint Stock Bank - Ho Chi Minh The author also developed a model based on SERVQUAL model of Parasuraman et al (1988) with 5 components and 23 scales, then collected data from 400 individual customers using credit services at VPBank - Ho Chi Minh branch By using the Exploratory Factor Analysis (EFA) combined with the ANOVA covariance analysis, the results show that: among the five factors of the SERVQUAL model, four factors were influenced positive to customer satisfaction: Empathy, Responsiveness, Reliability and Assurance At the same time, the results also show that there is a difference in customer satisfaction with the quality of credit services among different age groups

In summary, the review of research shows that: there were a lot of researches on "Quality

of banking services" and "Customer Satisfaction on the quality of banking services" These studies focused on the development of models such as SERVQUAL, SERVPERF, EUCS, CBSQ, SYSTRA-SQ, BANKSERV, BSQ to assess the factors affecting the quality of banking services and customer satisfaction on the quality of banking services.Within the scope of this research, the author will focus on the factors that affect customer satisfaction on the quality of banking services at Vietnam Maritime Commercial Joint Stock Bank

3 Research Objectives

The objective of the researchis to assess the banking service quality at Maritimebank, and

to propose solutions that are feasible to further improve customer satisfaction with quality of services for Maritimebank in the near future

In order to achieve that objective, the topic is directed towards specific objectives:

 Analyzing and assessing the current status of the quality of banking services provided

at Maritimebank;

 Developing a system of scales and models to measure the factors affecting the satisfaction of individual customers on the quality of banking services at Maritimebank;

 Examining the impact of factors affecting the satisfaction of individual customers on the quality of banking services at Maritimebank;

 Suggesting some solutions to improve customer satisfaction on banking services quality for Maritimebank in the integration period

4 Research Subjects

The thesis will focus on the factors that affect customer satisfaction on the quality of banking services at Maritimebank

5 Research Scopes

 About space: reseach at all branches and Head Office of Maritimebank

 About objects:Individual customers (including internal customers and external

customers of Maritimebank) have been using the banking services of Maritimebank in the past 1-3 years

 About time: Secondary data collected from 2015 to 2017, primary data authors

 How do the customersassess the quality of banking services at Maritime Bank?

 What is the impact of factors on customer satisfaction on the quality of banking services?

7 Research Methods

The thesis uses a combination of different research methods such as: descriptive statistical methods; methods of synthesis, qualitative research methods and quantitative research methods

8 Structure of the thesis

This thesis includes five main chapters:

Chapter 1: Literature Review

Chapter 2.The status of the quality of banking services at Maritimebank

Chapter 3: Data and Methodology

Chapter 4: Reseach Results

Chapter 5: Findings and Recommendations

CHAPTER 1 LITERATURE REVIEW 1.1 Banking services

1.1.1 The concept of banking services

There is no uniform definition of banking services The diversity, complexity and invisibility of service types make it difficult to unify service concepts Not only in Vietnam, but

in every country in the world, there are different ways of understanding the different services Therefore, the General Agreement on Trade in Services (GATS) of the WTO does not introduce the concept of services but rather lists services into the twelve broad categories of 155 subdivision Also in the encyclopedia of Vietnam explained: service is the service activities to meet the needs of business production and living

In the world, the problem of banking services is understood in the broadest sense, that is the whole operation of monetary, credit, payment, foreign exchange of the bank for businesses and the public

In Vietnam, in the Law on Credit Institutions in 2010, the phrase "Banking services" is mentioned in Clauses 1 and 7 of Article 20 but there is no specific definition Some other articles

of the Law mention types of banking services such as treasury services (Article 67), insurance services (Article 74), consultancy services (Article 75) and other services related to banking operations (Article 76) Even the Draft Law on Credit Institutions (Article 4, Clauses 11) and the draft State Bank Law (Article 8, Clauses 1) are as follows: “Banking services are services provided by the bank regularly in the following forms: (a) Receiving deposits; (b) credit granting; (c) Providing payment services” According to the WTO definition: Financial services are any financial service provided by a financial services provider of a member Financial services include insurance services, banking services and other financial services As such, banking is a component of financial services

So in Vietnam, the clear distinction between banking services has not yet been formalized There are opinions that all professional activities of commercial banks (credit, currency, foreign exchange ) are considered as service activities This view is shaped from the viewpoint of the world when banking is broadly understood,that is the entire operation of currency, credit, payment, foreign exchange of the bank for businesses and the public But there are also arguments that banking services are not part of credit operations (such as deposit

and lending), in other words, non-performing loans that are lucrative to banks In view of this, service competition among banks does not take into account traditional activities such as receiving deposits, lending, which any bank can do When it comes to services people will immediately think of the ability to provide pure services such as payment, card services, bill payment services, online banking services

1.1.2 Characteristics of banking services

As the bank's operations exist in the form of services, the types of banking services also have features such as all types of services such as:

1.1.2.1 Invisibility

Banking services have no specific shape, can not touch, weigh, measure as specifically as tangible products For general products, customers may require quality testing prior to purchase, but for banking services it is not possible to do so Because of the invisible nature, banking services do not have "Samples" nor "trial" as physical products Only through the use of the service, customers can feel and evaluate the quality of service the best way

1.1.2.2 Characteristics not stored

Banking is basically not specific, so it's easy to imitate This makes the competition more intense and that is the main challenge of service marketing

1.1.2.3 Inseparable from origin

In most cases, banking services are created and consumed at the same time and are only completed with the completion of consumer spending If there are no customers, there is no system to create services

1.1.2.4 Instability

Since banking services are provided by different parts and people, at different times and places, and with customer interference in the process of creating services that create instability of the service Therefore, it is difficult to check the quality of service and this makes it difficult to manage the quality of banking services Another very important feature is that service coordination requires high aggregation and consistency, which is a rational structure consisting of many interrelated services and interactions with each other, complement each other in the process

of creating benefits for customers The coordination of these banking services at different levels and structures will form different banking service arrangements The problem is that banks need

to be skillful in combining these different types of services to create a complete set of services that are tailored to their strengths; At the same time, it best meets the unique needs of each target market On the other hand, since the market is constantly changing, banks are required to design a service structure that can be flexibly adjusted to changing needs and tastes of customers to avoid cost wastage

1.1.3 Types of banking services

1.1.3.1 Capital mobilization service

The business capital of the commercial bank consists of two main sources: own capital and mobilized capital, of which mobilized capital accounts for a large proportion of total business capital of the bank This is a great influence on the bank's cost and scalability This capital tends

to increase in line with the growth and stability of the economy Therefore, capital mobilization is the basic, first important business for a bank

1.1.3.2.Deposit service

With the deposit service, banks will mobilize idle capital from individuals, enterprises and economic organizations in the society through check accounts, current accounts, savings accounts Deposits at commercial banks include: Deposit for payment; Demand deposits; Time deposits; Saved money

1.1.3.3 Issuance of valuable papers

This is the source of capital that commercial banks have through the issuance of valuable papers such as bank notes, bank bonds, certificates of deposit Buyers may be organizations or individuals in the economy, in addition to using idle capital or unused temporary income to buy, this is also a direct investment channel With this capital mobilization, the bank has the ability to meet a large amount of capital in a short time and the bank actively uses

1.1.3.4 Credit service

Loans are one of the main business operations, bringing a large income to the Bank Credit services perform well, the bank will be strong and developed, otherwise the bank will go bankrupt Along with the strong development of the economy with various types of economic diversification and complexity, credit services are also growing, rich in variety of forms, types

and methods We can summarize some of the main types of credit as follows:

(1) Short-term credit: are loans with a term of less than 12 months, banks provide short-term

loans to meet the demand for capital for production, business, services, service life of customers Short-term credit can be divided into different types: loans to supplement working capital or consumer loans

(2) Medium and long term credit: are loans with a term of more than 12 months Medium and

long term credit to meet the needs of procurement of machinery and equipment, building facilities, improve production technology, expand production to improve product quality so these

credits are usually loans under investment projects, financial leasing

1.1.3.5 Payment service

Payment service is considered as a profitable business with high profit margin but not enough attention Common payment instruments include: checks, collection orders, payment orders, letters of credit, cards On behalf of the customer, the bank performs the payment of goods and services through clearing, wire transfer via the electronic payment network within the banking system or other banking system; Or payroll services through personal accounts, payment

of electricity bill, telephone, water Many commercial banks have joined, cooperated as agents

to receive money transfer and pay remittances to some international financial institutions such as Wester Union, Money Gram

1.1.3.6 Card service

Bank card is a multi-function personal financial product issued by the bank, bringing many benefits to customers Cards can be used to withdraw money, send money, and extend credit, pay bills or transfer money The card is also used for many non-financial services such as querying account information Payment cards now come in many different types, but there are basically two types of debit cards (domestic and international) and credit cards Debit card uses the existing balance on the individual account Credit cards feature a "prepaid, postpaid" feature based on a bank's credit limit

1.1.3.7 Electronic banking services

In the context of the financial market - integration banking, Vietnam gradually opened the door for foreign banks to integrate, products and services of domestic banks need to find differences in form, internal solution Among them are banking services with modern technology

Currently, SMS Banking, E-Banking, Mobile Banking are the services that many customers choose With these services, customers do not have to go to the bank, it does not take too much time and can still carry out the necessary transactions such as: transfer, checking account, paying bills, delivery deposit as well as loan This is really a convenient service, bringing customers closer to the modern life The application of E-banking services in business activities of commercial banks is now a competitive advantage, and this is one of the important factors that determine the success of the service development trend in future Modern E- banking products include:

- Contact Center: Provide information and answer questions and complaints of customers

At present, most banks have call centers such as 24/7 switchboard of Asia Commercial Bank, Eximbank, Techcombank, Maritime Bank…

- Phone Banking: is the type of service that a customer uses to make a phone call to a fixed number of banks providing services to perform transactions or check account statements, hear information about rates and interest rates

- Mobile Banking: is a type of mobile banking service Customers can check account balance, list transactions, receive balance notices, exchange rates, automatic interest rates via SMS Banking, pay bills of electricity, water, telephone, internet

- Home Banking: is the type of service where transactions can be made at home through a computer system connected to the bank's computer system, including services such as money transfer, credit, debits, rates, interest rate…

- Internet Banking: is the banking service that customers interact with the bank through the Internet Customers can find information about products or services of banks or access

information about personal accounts, balances, deposits, loans

1.2 Quality of banking services

1.2.1 The concept of quality of banking services

Quality of service is one of the determinants of the effectiveness of services as well as the contribution of value to the economy of the country Customers can only evaluate the quality of service after purchase and use Quality of service is assessed depending on the culture, the field

of business should have many different definitions Throughout the literature review process, the author has identified some of the notion of service quality as used by the author:

Grönroos (1982) said that "Quality of service must encompass two aspects: technical quality is what the customer receives; Functional quality reflects how the service is provided" Grönroos (1984, p.37) said that "Quality of service is the difference between the quality of service that customers expect with the quality of service that customers actually feel" This concept has been reaffirmed in Parasuraman et al (1985, p 42) as follows: “Quality of service can

be defined as the comparison of customers between the quality of service they expect and the quality

of service they receive Quality of service is determined by the difference between the customer's expectations for the service and the actual perception of the service and can be expressed by the formula: Quality of Service = Perception - Expectation "; and in the study of Parasuraman et al (1988, p.17) “Quality of service is the difference between the expectations of customers on the service and their perception of the outcome of the service"

In addition, in the Lehtinen & Lehtinen (1982) study: “Quality of service must be assessed

on two aspects: the service delivery process and the outcome of the service” According to Woodside et al (1989): “Quality of service is understood by the answer to the question: Is customer service what they expect or different from what they expect? The services that customers receive are almost what they expect or better or worse than what they expect" According to Feigenbaum (1991) "Quality of service is the customer's decision based on actual experience with the product or service, measured on the basis of customer requirements, which can be whether or not it is conscious or simply sensible, totally subjective or professional, and always represents a dynamic target in a competitive market" In the opinion of Philip Kotler et al (2005) "Quality of service is defined as the ability of a service to include overall durability, reliability, accuracy, ease of use and ease of repair And other valuable attributes to perform its functions In addition, due to the different cultural environment, consumers in different countries may perceive different quality of service in different types of service"

Thus, although there are many different views but the same can be understood “Quality of service is the response to the needs and expectations of customers, in other words the quality of service is the difference between the customer's expectation and the perceived service provided”

Derived from the definition of service quality in general and the characteristics of banking

services in particular, can generalize about the quality of banking services as follows: “The quality of banking services is a set of characteristics of the products and services that the Bank

provides to its customers, enabling them to satisfy their needs and bring satisfaction to their customers.”

1.2.2 Criteria for measuring the quality of banking services

Quality of service varies according to the needs of the user, but the needs of users are constantly changing over time Therefore, the measurement of service quality also depends on many factors that affect the perception of the user and the nature of the service From the early 80s and 90s there were many authors who studied this issue: Gronroos (1984, 1990), Parasuraman et al (1982, 1985, 1988), Cronin and Taylor (1992, 1994), Avkiran (1994),Sweeney

et al (1997), Dabholkar et al (2000) In order to measure the quality of banking services, the authors used the popular model of BANKSERV of Avkiran (1994)consisting of 27 observation variables in 6 components: Staff conduct, Credibility, Communication, Access to teller services, Access to banking managementbased on the scale of the SERVQUAL model by Parasuraman et

al (1985).After examining the toolkit measuring the quality of banking services by surveying customers using retail banking services at branches of Australian commercial banks,Avkiran (1994) proposed a BANKSERV model consisting of four components with 17 observed variables

to measure the performance of banks:

(1) Staff conduct: express the responsiveness, behavioral culture and professional image

of bank staff to customers

(2)Credibility: express the ability to maintain customer credibility of the bank staff by correcting mistakes and informing customers of the results

(3) Communication: express the performance of the bank's needs with its customers by communicating successful financial announcements and timely delivery of information

(4) Access to teller services: Bank staff must be present throughout the work period, even during peak hours

1.3 Customer satisfaction

1.3.1 The concept of customer satisfaction

There are many different definitions of customer satisfaction as well as quite a lot of debate about this definition According to Fornell (1995), satisfaction or despair after consumption is defined as the customer's response to the perceived value of the difference between expectation before consumption and actual perception Product after consuming it

Hoyer and MacInnis (2001) argue that satisfaction can be linked to feelings of acceptance, happiness, help, excitement, joy According to Hansemark and Albinsson (2004), "Customer satisfaction is a customer's overall attitude towards a service provider, or emotional response to the difference between what the customers expects Before and what they receive, for the fulfillment of certain needs, goals or desires" Kotler (2000) defines "Satisfaction as a feeling of satisfaction or despair of a person as a result of actual comparison of the product (or result) in relation to their expectations"

Customer satisfaction is the customer's knowledge of a product or service that forms subjective judgments It is a kind of psychological feeling after the needs of the customer are satisfied Customer satisfaction is formed on the basis of experience, especially accumulated when shopping and using products or services After purchasing and using the customer's product, there will be a comparison between reality and expectation, from which satisfaction or dissatisfaction is assessed

Thus, it can be understood that customer satisfaction is a pleasant feeling or can be frustrated resulting from the buyer's comparison between the actual benefits of the product and their expectations The customer satisfaction with the purchase depends on whether they compare the actual benefits of the product and their expectations before buying

1.3.2 The relationship between quality of service and customer satisfaction

The relationship between quality of service and customer satisfaction has been the subject

of continuous discussion among researchers over the past decades.Much research on customer satisfaction in service industries has been made.Some authors argue that the quality of service and customer satisfaction are coincidental so that these two concepts can be used interchangeably.However, many studies show that quality of service and customer satisfaction are two distinct concepts.Parasuraman et al (1993) argue that there are some differences between quality of service and customer satisfaction, the main difference being the "cause and effect".Zeithalm and Bitner (2000) claim that customer satisfaction is influenced by many factors such as product quality, service quality, price, situational factors, personal factors.According to Gronroos, customer satisfaction is influenced by factors such as: technical quality and functional quality

1.3.3 Factors that affect customer satisfaction

1.3.3.1 External factors

(1) Macroeconomic environment: These include factors affecting income, payment,

spending, and the need for capital and deposits Factors of economic environment such as: Average income, export-import ratio, growth rate and economic development, inflation rate, stable economic policy, investment policy The economic environment has a strong impact on the demand and usage of banking products of customers Thus, it dominates the bank's operations such as capital mobilization, the ability to satisfy capital requirements and financial services for the economy Since then, the bank's customer service quality management must have effective solutions to attract customers The situation and change of economic environment factors have a great impact on the economic development in general and business activities of banks in particular The economic environment provides the bank with business opportunities while also creating challenges for banking business The success or failure of a bank's customer care program depends very much on the situation of the domestic, regional and global economy:

development, recession or crisis

(2) Technical and technological environment: Technological change has a strong

impact on the economy and society; change the mode of production, the way of consumption and the mode of exchange of society in general as well as of banks in particular The mode of exchange between customers and banks in the market is very sensitive to technical advances in technology, especially in the information technology Banking is one of the most important areas for applying information technology in business Today, banking is inseparable from the rapid development of information technology In fact, the changes of information technology have a strong impact on banking business The new technology allows the bank to innovate not only in the business process but also in the way of distribution and development of new products and services, such as the development of a network of computers allowing the bank to provide 24/24

banking services

The study of the technical and technological environment affects the ability to innovate new products and services, as well as communication between banks and customers, in order to exploit market opportunities to offer key suitable books Technology are the strongest strengths

of banking business It has brought miracles to the banking business such as fast money transfer, automatic teller machine, automatic payment, electronic card, automatic bank, internet banking Therefore, the attitude of customers to a bank depends very much on the techniques that banks

use, the level that the bank satisfies the needs and expectations of customers

(3) Legal and political environment: Banking business is one of the business sectors

subject to strict supervision of the law and the authorities The bank's operations are often tightly regulated by law The legal environment will give the bank new opportunities and new challenges As such, the legal environment creates the legal basis that constrains and influences the formation, existence and development of each bank That is why managers need to know the laws to carry out banking operations properly, and more importantly to find out what is not prohibited by law to make the right decisions to improve the efficiency of banking business

(4) Socio-Cultural environment: The behavior of customers and competitors of the bank

is dominated by many cultural factors also affects the demand for banking products and services The level of culture, consumption and habits of people will affect the behavior and demand for using banking products and services For example, in Vietnam, people have a habit of spending cash, so the development of non-cash payments in the population is difficult; Or people in Vietnam have the habit of buying goods in small markets near the road, so the demand for card services is slow to develop The study of Socio-Cultural factors not only to determine their impact on customer behavior of banking products, but also to help bank managers actively build policies, regulations and procedures in the profession and design of organizational models suitable to the cultural characteristics of each region and market area both in the country and in the world

(5) Competitive environment: In the economy, competitive markets are common and

objective phenomena Banking is one of the highly competitive and increasingly complex sectors

In recent years, the financial market has become more and more active due to the involvement of many types of banks and non-bank financial institutions Currently the number of licensed banks

is increasing, while the demand for quality products and customer service is increasing

1.3.3.2 Internal factors

(1) The staff of the bank: Man is the direct and decisive factor in quality of service

Customers evaluate banks through their trading staff Because, at the bank, the customer deals directly with the banker, through the gesture, manner, and attitude of the employee to evaluate the bank Quality of service depends largely on the expertise, attitudes, experience, sense of responsibility and the spirit of co-operation between all members and the department in the bank The strength and spirit of the bank staff, the value of human resource policies set in each bank

has a profound impact on the overall quality of service created Quality not only satisfy the needs

of external customers but also satisfy customers inside the bank Different trading staff may not provide the same quality of service, or the same employee may provide different services at different times Therefore, the formation and development of human resources to meet the requirements of the implementation of quality objectives is one of the determinants of service quality

(2) Network transaction system:A bank with a wide network of branches along with a

rich ATM / POS system will help customers to trade anywhere and anytime At the same time at the transaction points always ensure factors such as: convenient, fast and safe when dealing On the other hand, the wide branch network system is also the form of branding, introducing products to customers faster This will help the Bank to attract more customers to the transaction

and customers will also have good initial satisfaction and impression to the Bank

(3) Level of technology application: In recent years, the promotion of banking

technology modernization, the application of information technology in banking operations, and the expansion of the transaction network have facilitated the development of new products and services, improve the quality of customer service The introduction of modern multi-functional services such as ATM, Internetbanking, Homebanking, and Mobilebanking has marked a new

development in satisfying customers' needs

(4) Working environment: The working environment is professional, neat and tidy, the

staff work quickly, agile, layout desk counters, machines, and signs are reasonable, convenient, and suitable for each bank to show the image, the brand of the bank Customers will come to the

bank directly and will appreciate the quality of service

(5) Organization and management of the bank: The quality of the management activity

reflects the quality of the bank's operations The coordination and rational exploitation between the existing resources to create products depends on the awareness and understanding of the level

of directing the implementation of the program, policies and objectives of the quality plan of the bank management department At each bank, the quality of service is often different at branches,

at each supply point or at the bank's head Some leaders are interested in sales, disbursements, interests and mobilized deposits, but do not care about the quality of customer service Therefore,

it is necessary to develop a system, goals and measurement methods designed to enhance customer satisfaction

(6) The provision of services: The commercial bank is an economic organization

operating in the field of monetary and credit, it provides a number of services to customers Business operations of commercial banks are rich and diverse with traditional and basic products such as capital mobilization, loans, investment, payment, cards However, these basic services

need to meet the most basic needs of customers

(7) The prestige of the bank: The level of seniority and prestige of the Bank is also an

important factor Based on the fact that each bank has been and will create its own image in the market A large and reputable bank will have more advantages in banking operations The trust of customers will help the Bank to be able to stabilize the number of customers using the service to help the Bank more active in business A bank with a history of reputation, facilities, staff will create a good image of the bank, attracting the attention of customers, thereby enticing customers

to with bank

(8) Process of transaction: In addition to the convenience of transactions, customers also

want to process their transactions quickly, simple procedures, accurate transactions and safe With modern trading counter system, short form, easy to understand, dedicated transaction staff, enthusiastic consultant, friendly transaction space, short waiting time will surely satisfy all both the customers and vice versa

1.4 Models of measuring the quality of banking services

1.4.1 SERVQUAL Model

The five-gap model is a theoretical general model of service quality.In order to be practical, Parasuraman has been trying to develop a scale for measuring quality in the service sector.According to initial research by Parasuraman (1985), any service that consumers perceive

is based on 10 components: Accessibility, Competence, Communication, Courtesy, Reliability, Responsiveness, Credibility, Security, Tangibles, Understading/knowing the customer.This model has the advantage of covering all aspects of the service, but it is difficult to assess and analyze.In 1988, Parasuraman revised and formulated the SERVQUAL model of five components:

Tangibles: This element is the external image of the facility, the style of the staff, documents, manuals and banking information systems.In general terms, all that the customer sees directly with the eyes and the senses can influence this factor

Reliability: Express your ability to provide accurate, timely, and reliable service.This requires consistency in the performance of the service and respect of the commitments and the promise of the customer

Responsiveness: This is a measure of the ability to quickly solve problems, handle complaints effectively, be ready to help customers and meet customer requirements.In other words, the level of response is the level of response from the service provider to what the customer wants

Assurance: This is the factor that creates credibility, trust for the customer is felt through the professional service, professional knowledge, elegant style and good communication ability,

so that customers feel comfortable when using the services of the bank

Empathy: is the attention, caring customer care, giving the customer the best treatment can help customers feel as "the guest" of the bank and always warmly welcome at every place

1.4.2 SERVPERF Model

Parasuraman et al asserted that SERVQUAL is a reliable and accurate measure of service quality and that this scale is widely used However,using of the five-gap model as the basis for evaluating the quality of service is controversial From the SERVQUAL assessment, in 1992 Cronin and Taylor developed the SERVPERF model This model determines the quality of service by measuring only the quality of service (rather than the quality of feeling and expectation as SERVQUAL) Based on the SERVQUAL scale, the components and variables of the SERVPERF scale are the same as SERVQUAL The SERVPERF model is called the sensory model

1.4.3 BANKSERV Model

Avkiran (1994) developed a set of tools for measuring the quality of banking services, starting with 27 observations made of six components: (1) Staff conduct; (2) Credibility; (3) Communication; (4) Responsiveness; (5) Access to teller services; (6) Access management branch basing on SERVQUAL model of Parasuraman et al (1985) After examining the scales of measuring service quality through the survey of customers using retail banking services at branches of Australian commercial banks, Avkiran (1994) proposed th BANKSERV model consisting of four components with 17 observation variables to measure the performance of bank branches as well as to predict problems arising during the service delivery process and customer segmentation as the basis for better decision making in marketing

(1) Staff conduct: express the responsiveness, behavioral culture and professional image of bank staff to customers

(2) Credibility: express the ability to maintain customer credibility of the bank staff by correcting mistakes and informing customers of the results

(3) Communication: express the performance of the bank's needs with its customers by

communicating successful financial announcements and timely delivery of information (4) Access to teller services: Bank staff must be present throughout the work period, even during peak hours

Diagram 1.1 BANKSERV Model of Avkiran (1994)

(Source: Avkiran, 1994)

1.4.4 JOHNSTON Model

From the reported results of customer dissatisfaction with UK banking services is growing, although banks have made great efforts to improve the services they provide For customers, Johnston (1997) conducted an analysis of the impact of service quality improvement initiatives on customer satisfaction and dissatisfaction and proposed a measurement model of 18 factors as follows:

1 Access: the ability of customers to easily access the transaction site as well as find the roads around the transaction

2 Aesthetics: represented in the context of the environment providing services that bring satisfaction to customers such as decoration, design facilities, publications and professional appearance of the bank staff,

3 Attentive/Helpfulness: express the attitude of the staff always enhance the spirit of service and create a good impression for customers through the interest, willing to help customers

Staff conduct

Credibility

Communication

Access to teller services

Quality

of banking services

4 Care: express the interest, empathy and patience with customers

5 Availability: express the availability of service facilities, service staff and the types of services provided to clients

6 Cleanliness/Tidiness: express the cleanliness and orderliness of the elements involved in the tangible means such as service environment, facilities, layout of publications, introduction of services and even the staff of the bank

7 Comfort: Express the comfort of facilities and service space

8 Commitment: express the commitment of the staff to serve their work Servers must always feel proud and happy about their work and always have positive and thoughtful thinking in their work

9 Communication: express the ability to communicate the types of services in a clear, complete and accurate way for customers to understand

10 Competence: express through the skills, experience, professional level and ability to consult service and procedures quickly and accurately of the bank staff

11 Courtesy: express the courtesy, respect of the bank staff to customers in the process of providing services

12 Flexibility: express the ability to handle problems and deliver services that fit the needs of the customer

13 Friendliness: express the warm, friendly, enthusiastic attitude of the bank staff towards customers, making customers feel honored, welcome

14 Functionality: express the convenience of the equipment provided and the types of services offered by the bank

15 Integrity: express that the bank treats customers honestly, fairly, and reliably

16 Reliability: express the consistency of the activities of the service delivery organization, the types of service and its staff Express your ability to deliver on time and as agreed with the customer

17 Responsiveness: express the ability to provide timely service, do not let customers queue long waiting

18 Security: Customers feel safe when dealing with banks as well as benefit from the service

process

1.4.5 BSQ Model of Bahia and Nantel (2000)

Bahia and Nantel (2000) built a BSQ (Banking Service Quality) model that included 31 observation variables in six components: Effectiveness and Assurance, Access, Price, Tangibles, Service Portfolio, Reliability based on the combination of 10 quality service components of

SERVQUAL model by Parasuraman et al (1985) and 7Ps in mixed marketing theory

1.4.6 Model of Sureshchander et al (2001)

From the authors' critique of the literature on service quality modeling in the SERVQUAL model of Parasuraman (1985), Sureshchander et al (2001) cautiously conducted a review of 22 SERVQUAL observation variables that showed that most of the observed variables reflected employee and customer interaction during service provision and the rest show the tangible aspects (equipment, material, ) This measurement tool seems to have overlooked other important elements of service quality: the types of core services, service delivery standards (non-human factors), and social responsibility of the service provider Therefore, to generalize the measurement of service quality, Sureshchander et al (2001) proposed a service quality measurement model in the customer service process consisting of 41 observation variables with 5 components as follows:

1 Core service/Service product: The core services of the bank include: deposit services, ATM card services, telephone banking services, auto loans, housing, retirement funds, traveler's checks

2 Human element of service delivery: express the delivery of banking services as promised

by bank employees, the efficiency of employing the skills and capabilities of bank staff when a problem occurs Bank staff are always willing to help and meet the needs of customers, making customers feel safe and secure transactions of customers, caring customer care

3 Systematization of service delivery: express the standardization and simplifies the way service providers deliver banking services to customers in the shortest possible time without any problems Enhance technology capabilities (Telephone banking, Internet banking, wireless banking, etc.) to provide high quality customer service

4 Tangibles of service: Express the ambient environmental conditions such as temperature, ventilation, noise, density of interior equipment at the bank's transaction points must create comfort for customers when delivered with banks; Other visual cues such as logos,

billboards, leaflets, documents and other artifacts in the bank, costumes - the appearance of the bank staff must show attractive, neat and professional industry,

5 Social Responsibility: All customers are treated equally Distribution network of the bank should be located in convenient locations for customers to trade; Responsibility must show openness among bank employees such as: on time, regularity, honesty and no strike,

1.4.7 SYSTRA - SQ Model of Aldlaigan and Buttle (2002)

Aldlaigan and Buttle (2002) developed a measurement model of the quality of retail banking services (SYSTRA-SQ) based on the Nordic model of Gronroos (1984) The SYSTRA-

SQ measuring tool was started from 963 observation variables describing customer perceptions

on the quality of banking services and then reduced to 21 variables with four components as follows:

1 System service quality: This component expresses that service quality assessment can be explicitly attributed to a service organization as a system rather than to individuals in the system It contains a combination of variables related to functional and technical performance at the organizational level Functional quality components include: listening to customers, easy access, feedback speed, and the look of the organization Technical organization components include: the quality of customer service consultation, flexible service solutions, promise fulfillment, employee empowerment and customer service

4 Machine Service Quality: this component focuses on machinery and equipment It relates to

the reliability of equipment, machinery and performance when used

1.4.8 CBSQ Model of Xin Guo et al (2008)

With the objective of assessing all types of services of the bank and compare the level of expectations and feelings of business customers about the types of services that banks provide, Xin Guo et al.(2008) built a service quality measurement model that began with 31 observation variables with seven components: Reliability, Empathy, Tangibles, Human Capital, Accessibility, Technology, Communication basing on the SERVQUAL measurement tool and in-depth

interview results of 18 financial managers to measure the quality of wholesale banking services

in the Chinese financial market After testing through the survey of expectations and perceptions

of corporate customers using banking services at Chinese banks, Xin Guo et al (2008) proposed

a CBSQ (Chinese Banking Service Quality) model with 20 observation variables in four components:

1 Reliability: express the ability to perform the service as promised accurately and reliably

2 Human Capital: express the issues related to the appearance of employees, the understanding of customers, professional skills

3 Technology: express the level of application of modern technology in banking services, especially information technology

4 Communication: express the communication channels between banks and corporate clients, including access to banking services

There are two components of "Reliability" and "Human Capital” in the functional quality and two components of "Technology" and “Communication" in the technical quality

1.4.9 Model of Kumar et al (2009)

Based on the cultural background, customs and habits of consumers in each country, Kumar et al (2009) modified the SERVQUAL model of Parasuraman et al (1988) by supplementing add a component "Convenience" and presented a six-component model with 26 variables The author argues that the addition of "convenience" to the model is due to this factor being one of the major concerns of customers at Malaysian banks The "Convenience" service may affect the overall assessment of customer service quality, including satisfaction, quality of service and the beauty of the bank Based on the survey results of customers using banking services, the author proposed a model of measuring the quality of banking services including4 components:(1) Tangibles, (2) Reliability, (3) Service capability, (4) Convenience

1.4.10 BANQUAL-R Model of Tsoukatos and Mastrojianni (2010)

Similarly to the above studies, to have a standardized scale to measure the quality of banking services in the Greek financial market, based on the combination of two models by Parasuraman (1985) and BSQ model of Bahia and Nantel (2000), Tsoukatos and Mastrojianni (2010) proposed a BANQUAL-R model consisting of 27 observation variables in 4 components: (1) Empathy/ Assurance, (2) Effectiveness, (3) Reliability, (4) Confidence

CHAPTER 2 THE STATUS OF THE QUANLITY OF BANKING SERVICES AT

MARITIMEBANK

2.1 Overview of Vietnam Maritime Commercial Stock Bank

Maritime Commercial Join Stock Bank (Maritimebank) was officially established under License No.0001/NH-GP on June 08, 1991 of the Governor of the State Bank of Vietnam On July 12, 1991, Maritime Bank was officially opened and put into operation in the port city of Hai Phong, immediately after the Ordinance on Commercial Banks, Credit Cooperatives and Financial Companies came into effect At that time, Maritimebank became one of the first stock commercial banks in Vietnam This is the result of the collective strength and innovative spirit of the founding shareholders: Vietnam Maritime Administration, Vietnam Post and Telecommunications Group, Civil Aviation Administration of Vietnam

Initially, Maritime Bank had only 24 shareholders with chartered capital of 40 billion dong and several branches in big cities and provinces such as Hai Phong, Hanoi, Quang Ninh and

Ho Chi Minh City It can be said that the birth of Maritime Bank in the early 90s of the twentieth century has contributed to a major breakthrough in the process of economic restructuring in Vietnam Looking back on the development, 1997-2000 is the most challenging phase of Maritimebank Due to the impact of the Asian financial crisis, the Bank faced many difficulties However, by internal strength and bravery, Maritime Bank has gradually regained its balance and developed strongly since 2005

So far, Maritimebank has become a joint-stock commercial bank developing strongly, sustainably and creating trust for customers With initial chartered capital of VND40 billion; to

700 billion in 2006 but in 2017 after 26 years the charter capital of the Maritimebank has reached 11,750 billion About transaction network: number of transaction points and number of employees increased significantly, most of the staff are trained professionally, ready to meet the diverse needs of customers with best service quality Along with the expansion of the network of individual customers with significant transaction points, Maritimebank is focusing on corporate clients Committed to always meeting the demand for loans, Maritimebank has signed many large credit contracts with the Vietnam Post and Telecommunications Group and the Vietnam National Coal and Mineral Industries Group, Company of Investment and Industrial Development (Becamex) In the interbank market, Maritimebank is always considered a reputable and

successful partner in the unfavorable business environment because Maritimebank has the right orientation in risk management, by the unity, unanimity "co-synergy" of the board and all employees of Maritimebank With the principle of "Creating sustainable value" along with experience, available potentials and the right course of operation, Maritimebank has proven its stable, confident in the process of international economic integration, knowing that the front will have many difficulties, challenges Maritimebank is striving to be the market leader in providing professional financial services with full international standards Maritimebank's network is spread throughout the country, with Head Office, Transaction Center based in Hanoi; Its branches are located in Hai Phong, Hanoi, Quang Ninh, Da Nang, Ho Chi Minh City, Vung Tau, Can Tho and Nha Trang In addition, Maritimebank also has a transaction office in Hai Phong and two branches in Hanoi, Da Nang and Ho Chi Minh City to expand customer service Maritimebank has established correspondent relationships with more than 200 banks and branches of foreign banks in many countries around the world, contributing significantly to the speed of international payment For this reason, Maritimebank is a leading commercial bank in trade finance (Letter of Credit, collection, and guarantee) and international payment; It is a reliable companion for businesses operating in the field of foreign economics With commitment for sustainable development, Maritimebank strives to be the leading commercial bank in the country in terms of modernization, dynamic, professional and prestige in all business activities…

2.2 Quality assurance services at Maritimebank

2.2.1 Training programs, communication and evaluation, quality control services at Maritimebank

 Training programs on the quality of banking services:

- Direct training: organize training courses for all staff members of transaction offices and transaction offices

- Training through E-learning: online training for all employees of the bank

 Communication programs on the quality of banking services:

- Service quality news: There will be weekly newsletter on the quality of services sent

by Email to all employees of Maritimebank

- "5S Day" Program: This is the day all the staff members together review the

unresolved areas of the 5S regulations and correct the inappropriate points

- "Service Excelence" program is an emulation program for branches and transaction offices of Maritimebank nationwide to spread and maintain the culture of excellent service quality

- "Service Idol" program: to honor individuals who have outstanding achievements in customer service, as shown by: Communicating and handling difficult situations, meeting the requirements of customers; The support provides a good customer experience for service quality at Maritimebank; The support beyond the needs of customers to appreciate, praise; The support that customers want to stick with Maritimebank long time; The support has spread and motivated colleagues It then honors individuals to deliver excellent service quality, in order to promote the role of individuals in maintaining and improving service quality at Martimebank At the same time, to promote emulation and improve service quality in each unit in particular and Maritimebank in general

 Evaluation programs:

- Direct evaluation program of the business unit: It is a form of direct assessment of the quality of services in terms of material facilities, transaction space and appearance of Maritimebank employees

- 5S Program: This is the day when all employees at Maritimebank business units jointly arrange, screen and clean the transaction points and conduct self-assessment according to Maritimebank's quality standards; then overcome the points not to improve the quality of their services

- The program of evaluating the quality of services through the camera: a form of assessing the quality of employees in terms of behavior, appearance, transaction time and sense of 5S implementation in the working areas of the units and it is rated through the camera system of Maritimebank

- Mystery shopping Program: An objective form of assessment of the compliance of bank staff with respect to behavior, communication, skills, knowledge and behavior Follow the service quality standards by sending "mystery shoppers" who play customers to business units to learn, evaluate, and thereby improve customer

satisfaction

- Customer Satisfaction Survey: is a form of quality assessment conducted by a number of methods such as: (1) Group interview method, intensive interview for customers and staffs of Maritimebank, (2) Customer satisfaction survey by Phone

2.2.2 Current status of service quality at Maritimebank

2.2.2.1 About the Score

Chart 2.1 Comparison of service quality between banks in 2017

(Source: Survey of Vietnam Nielsen Market Research Company)

The score is based on the following factors:

- Customer's need,

- Procedures and records related to the transaction,

- Service attitude of Maritimebank staff,

- The quality and speed of operations of Maritime Bank employees

Chart 2.1 shows that the service quality of Maritimebank is not good compared to other banks While the other banks are highly rated (over 70 points), the Maritime Bank only reached 65/100 points This will directly affect the level of customer satisfaction, which makes the bank less competitive compared to its competitors, which can have a huge impact on the bank's business The development and improvement of service quality are aimed at achieving customer satisfaction Banking users will feel the same when the organization they choose satisfies the requirements they set out:

Banks need credibility: this can be achieved when the bank is established for long time, with no complicated financial issues, awards and certifications on the quality of services, favorite customers, many others introduced the reputation of the bank

- Issues that need to be dealt with quickly and simply, such as time spent on processing and approving records, minimizing manual forms filling, accessing information only through a employee

- Professionalism is the basic factor to save a good impression in the mind of the customer Services should be timely provided, banking procedures must be clearly defined and explained

- Convenience is also an advantage, especially for busy customers who are usually VIP customers, who prefer banks on the weekends, ATM networks across the country and much more for business transactions, for customers to receive deposits

- Interest rates and promotions need to be attractive, competitive or based on the agreement for the preferred customer

- Good customer service in special occasions

- Employees should be friendly and dedicated, actively welcome and willing to listen, answer to customers

Thus, the criteria directly reflects the level of customer satisfaction or reflects the quality

of services of a bank As service users look closer and closer to the bank, the quality of their services improves

2.2.2.2 On the level of Brand Image

Chart 2.2 Comparison of Brand image of Maritimebank in third quarter of 2016 and

third quarter of 2017

(Source: Survey of Vietnam Nielsen Market Research Company)

Chart 2.2 shows that Brand image of Maritimebank increased significantly in the third quarter of 2017, but Top-of-Mind was not recorded among the surveyed clients

2.2.2.3 About the level of favorite

Chart 2.3 Compare Maritimebank's favorite level of customer with other banks in 2017

(Source: Survey of Vietnam Nielsen Market Research Company)

Chart 2.3 shows that Maritimebank's ability to attract customers is low compared to its competitors The conversion rate from "customer's consideration" to "customer's use" is only 6%, while the industry average is from 30% to 40% This rate is influenced by the quality of service

of the organization Banks need to build trust with customers to improve the index as well as attract more people to use the service