Improving marketing activities in retail banking at joint stock commercial bank for investment and development of vietnam transaction 1 branch

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --- PHẠM PHƯƠNG LIÊN IMPORVING MARKETING ACTIVITIES IN RETAIL BANKING AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF

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

-

PHẠM PHƯƠNG LIÊN

IMPORVING MARKETING ACTIVITIES IN RETAIL BANKING AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM-

TRANSACTION 1 BRANCH

CẢI THIỆN MARKETING TRONG HOẠT ĐỘNG NGÂN HÀNG BÁN LẺ TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2021

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

-

PHẠM PHƯƠNG LIÊN

IMPORVING MARKETING ACTIVITIES IN RETAIL BANKING AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM-

TRANSACTION 1 BRANCH

CẢI THIỆN MARKETING TRONG HOẠT ĐỘNG NGÂN HÀNG BÁN LẺ TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ

Chuyên ngành: Quản trị kinh doanh

Mã số: 8340101.01

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS NGUYỄN VĂN GIÁP

HÀ NỘI - 2021

ACKNOWLEDGEMENT

I would like to express my deep gratitude to the teachers and staff, experts, Faculty

of Administration and Business - Hanoi National University for teaching and creating favorable conditions for me throughout the time to take a master's class in Business Administration

I would like to thank the teachers for their enthusiastic guidance and suggestions throughout the thesis making process Especially PhD Nguyen Van Giap with the patience, motivation, inspiration, passion, vast knowledge source, continuously supported me throughout the process of studying and researching the thesis

Finally, I would like to thank the leaders of Bank Branch 1 - Bank for Investment and Development of Vietnam and my colleagues for helping and creating favorable conditions for me to collect data to do the thesis

TABLE OF CONTENTS

DECLARATION i

ACKNOWLEDGEMENT ii

TABLE OF CONTENTS iii

ABBREVIATION vi

LIST OF TABLES vii

LIST OF CHARTS & FIGURES viii

INTRODUCTION 1

1 Rationale 1

2 Overview of research 2

3 Research objectives 4

3.1 General objectives 4

3.2 Specific objectives 4

4 Research question 5

5 Research object and research scope 5

6 Research method 5

6.1 Methods of information collection 5

6.2 Information processing method 6

6.3 Methods of information analysis 6

7 Thesis structure 6

CHAPTER 1: THEORETICAL BASIS FOR MARKETING IN RETAIL BANKING OF COMMERCIAL BANKS 7

1.1 Retail Banking Service 7

1.1.1 The concepts 7

1.1.2 Features of the retail banking service 7

1.1.3 Retail banking services 8

1.2 Marketing in retail banking activities in commercial banks 11

1.2.1 The concept 11

1.2.2 The role of retail banking marketing 12

1.2.3 Marketing content in retail banking 14

1.2.4 Factors affecting retail banking marketing 22

1.3 Experience and lessons learned in implementing retail banking marketing activities at some commercial banks 24

1.3.1 Experience of some commercial banks in retail banking marketing 24

1.3.2 Lessons learned for the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Transaction 1 Branch 27

CHAPTER 2: THE CURRENT SITUATION OF MARKETING IN RETAIL BANKING OF JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV) - TRANSACTION 1 BRANCH 29

2.1 Introduction to the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV)- Transaction 1 Branch 29

2.1.1 History of formation and development 29

2.1.2 Organizational Structure 30

2.1.3 Business results 31

2.2 Current status of retail banking marketing at Vietnam Joint Stock Commercial Bank for Investment and Development, Transaction 1 branch 32

2.2.1 Current situation of market research 32

2.2.2 Current status of the target market 35

2.2.3 Current situation of marketing policies mix 36

2.2.4 Evaluate the effectiveness of retail banking marketing activities at BIDV Transaction 1 54

2.3 Overall assessment of retail banking marketing at Vietnam Joint Stock Commercial Bank for Investment and Development - Transaction 1 Branch 60

2.3.1 Results achieved 60

2.3.2 Limitations and reasons 62

CHAPTER 3: SOLUTIONS TO IMPROVE MARKETING ACTIVITIES IN RETAIL BANKING OF JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV) - TRANSACTION 1 BRANCH 67

3.1 Orientation and objectives of retail banking business at Vietnam Joint Stock Commercial Bank for Investment and Development - Transaction 1 Branch 67

3.1.1 Retail banking business orientation at Vietnam Joint Stock Commercial Bank for Investment and Development, Transaction 1 Branch 67

3.1.2 Retail banking business objectives at Vietnam Joint Stock Commercial Bank for Investment and Development, Transaction 1 Branch 67

3.1.3 The direction to perfect marketing activities in retail banking 69

3.2 Solution of improving marketing in retail banking activities at Vietnam Joint Stock Commercial Bank for Investment and Development- Transaction 1 Branch 70

3.2.1 Improving market research 70

3.2.2 Improving the selection of target market 71

3.2.3 Solutions for completing mixed marketing activities in banking activities at

BIDV Transaction 1 73

3.3 Recommendations 82

3.3.1 Recommendations to the Government 82

3.3.2 Recommendations to the State Bank 83

3.3.3 Recommendations to the Bank for Investment and Development of Vietnam 84 CONCLUDE 86

REFERENCES 87

APPENDIX 89

ABBREVIATION

BIDV Joint Stock Commercial Bank for Investment and Development of

Vietnam

BIDV SGD1 Joint Stock Commercial Bank for Investment and Development of

Vietnam - Transaction 1 Branch

LIST OF TABLES

Table 2 1 Business performance of BIDV Transaction 1 31

Table 2 2 Sample of customer survey using Retail banking service of BIDV Transaction 1 34

Table 2 3 Market research results of BIDV Transaction 1 35

Table 2 4 Market segmentation activities, defining the target market of BIDV Transaction 1 36

Table 2 5 List of BIDV Transaction 1's banking services compared to competitors 37

Table 2 6 Survey results on products and services of retail banking 38

Table 2 7 Figures on average deposit and lending rates of banks 39

Table 2 8 Prices of some services at banks in the area of operation 40

Table 2 9 Survey results on the cost of banking services 40

Table 2 10 Branches and transaction offices of BIDV Transaction 1 41

Table 2 11 Survey results on distribution channels of banking services 43

Table 2 12 Some gift programs for depositors in 2019 44

Table 2 13 Prizes in the lucky draw program of BIDV Transaction 1 45

Table 2 14 Some preferential activities in lending of BIDV Transaction 1 in the period of 2017-2019 46

Table 2 15 Survey results on advertising activities, promoting banking services 47

Table 2 16 Survey results on facilities 49

Table 2 17 Human resources of BIDV Transaction 1 50

Table 2 18 Training form of human resources for management and business of banking services at BIDV Transaction 1 51

Table 2 19 Results of training human resources in banking and banking services at BIDV Transaction 1 52

Table 2 20 Survey results about bank staff 52

Table 2 21 Survey results on banking service process 54

Table 2 22 Sales of retail capital mobilization services at banks 55

Table 2 23 Outstanding loans from retail credit activities 56

Table 2 24 Revenue raised from banking services 57

Table 2 25 Market shares of banking services by some banks 58

Table 2 26 Income from Retail banking services 59

Table 2 27 Number of customers using the service 60

Table 3 1 Business plan targets of Retail banking for the period until 2025 of BIDV Transaction 1 69

Table 3 2 Banking services market segments 72

LIST OF CHARTS & FIGURES

Chart 2 1 Organizational structure of BIDV Transaction 1 Branch 30 Chart 2 2 BIDV Transaction 1's Banking Banking Market Research Process 33 Chart 2 3 ATM and POS system of BIDV, Transaction 1 branch 42 Chart 2 4 Cost of upgrading and maintaining Core banking, ATM and POS system of BIDV Transaction 1 branch 48

INTRODUCTION

1 Rationale

Currently, competition in banking services is a vital issue for banks; Commercial banks continuously develop products and services with the desire to be an outstanding leader in retail services, which is banking services associated with modern technology, multi-utility, towards the majority individual and household customers Along with the trend of development and international integration, retail banking services are the development target of commercial banks in the Vietnamese market Our country's retail market is currently considered to be very potential due to a stable political and security environment; large population size, young structure; People's intellectual level is increasingly improved; The economy has continuously grown for many years at a high rate, making the living standards of people continuously improve Up to now, most domestic, commercial banks as well as foreign financial institutions operating in Vietnam have had a strategy to focus on developing retail banking services

Joint Stock Commercial Bank for Investment and Development of Vietnam - Branch of Transaction 1, one of the oldest state-owned commercial banks with the most extended history of development in Vietnam Activities considered to be the strength of BIDV are the wholesale banking services for customers who are State Corporations, domestic and foreign companies and organizations For many years, individual customers hardly focused on development, the market share of retail banking services of the Branch

in the low area, only about 18.4%, much lower than the group of direct competitors such as Vietinbank, Vietcombank

Also, according to an assessment from Retail Division - BIDV Transaction 1 Branch, one of the reasons that the branch's business activities are not practical is due to limitations in marketing

Currently, the banking service marketing activities are not focused by the Branch; the implementation results are not commensurate with the inherent potential

Market research, customer segmentation, service improvements, and media advertising aimed at retail customers have not been made, or with little frequency

Through the survey of the Retail Division at the Branch in 2019, it showed that the level of individual customers and business households knowing about the products and services of BIDV, at the Transaction 1 Branch is not high

Some customers confuse the BIDV brand name with other banks

With the above situation, it is indispensable to study marketing activities to develop retail banking services at BIDV - Transaction 1 branch, in order to aim at BIDV's future goal by 2025: become Vietnam's leading commercial bank in the field of retail banking services, especially the scale, providing synchronous, diversified, best quality products and services suitable to the segment of customers Stemming from the fact as mentioned above, the author chose the topic "Improving Marketing Activities in Retail Banking at Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) - Transaction 1 Branch " as the thesis topic graduating

in Jordan

Research by Cassy Gleason and Akua Soadwa (2014) on ―Survey of retail bank services in New York‖ In the study, the two authors surveyed 207 retail banks across New York to learn about the goods and services that banks offer to the individual and consumer customers and small and medium enterprises The study highlights more than ten retail banking products and services that these banks provide, the costs as well as the profits that retail banking brings, such as: money transfer services, guarantee loans support in paying personal income tax

The research by Tiwan, Rajnish and Buse, Stephan (2015) on ―The German banking sector: Competition, consolidation and contentment‖ studied the conceptual study

of retail banking services and provides research on the contribution of banking services to the growth of commercial banks Accordingly, retail banking is a type of bank where individual customers use products and services at the local branches of central commercial banks Services provided include mortgage, savings, personal loans, debit cards, credit cards… Retail banking refers to banks in which direct transactions with individual customers are more than companies, corporations The study of the authors also mentioned that retail banking is a combination of financial services

The study of Reynold and Philip (2015) on ―Retail banking services Marketing strategy: Model of traditional, electronic and Mixed Distribution choices‖ does not go into the concept, explore the types of retail banking services, but go into research Retail

banking marketing strategy: Traditional models, electronics and mixed distribution options According to this study, the development of a retail banking distribution strategy

is an essential issue in the banking industry This study shows that the influence of electronic distribution technology such as PC bank is the strategic choice for providing retail services The analysis in the study shows that: changes in attitudes and behaviors of individual customers have a large role in the business operations of banks, due to banking services for individual customers more than 40% of total transactions

Research by G Vairava Subramanian and S Nehru (2012) on the evaluation of marketing strategy for retail credit services for small and micro enterprises in India According to the author of the statistics, the small and micro enterprises are contributing more than 16-18% of India's GDP, and if these businesses receive more support, these retail businesses can contribute more than 30% to GDP The biggest challenge for these businesses is practical financial management for both the organization's operations and business expansion activities In the study, the author gives the following contents: retail credit rating concept, credit rating mechanism, credit rating planning, retail credit rating process, benefits of work: Micro and small business credit rating for retail customers The research has made an outstanding contribution to helping small and micro enterprises to access credit capital at commercial banks in India

Author Pham Thu Thuy (2016) researches on "Development of marketing and retail banking services at Vietnam Bank for Agriculture and Rural Development", Master's thesis

in Economics of Banking Academy Research to analyze the current situation and propose solutions to develop retail marketing activities The research has provided information on the marketing activities that the bank is doing, pointing out the pros and cons of the marketing activity, then finding solutions with the given limitations, more specific solutions following the 7P model However, the topic is just marketing, not highlighting the development strategy of each type of product

―Retail Credit Marketing Solution of Joint Stock Commercial Bank for Investment and Development of Vietnam - Daklak branch" by Tran Ngoc Duy in 2017 The thesis gives a detailed and clear view of the current situation Consumer credit and marketing activities for consumer credit The current situation is based on the analysis of primary data

by customer polls, so it is highly practical, but the solutions section has not clearly stated specific main solutions for easy application At the same time, the branch has not yet mentioned the customer segmentation and identified the target market in the Bank's Marketing activities

Author Pham Thi Phuong Dung (2012) conducted the research "Marketing solutions for payment card services at Bank for Investment and Development of Vietnam,

Da Nang branch", Master Thesis of Business Administration, University of Da Nang The research uses the focus method of surveying, collecting primary data, using the 7P marketing research model to analyze the current status of marketing activities as well as the impact of each factor in 7P on operational efficiency This marketing, thereby proposing suitable solutions

Author Hoang Quoc Huy (2015) conducted research on the topic "Marketing solutions for Internet Banking services of Saigon Commercial Bank - Binh Dinh Branch in Binh Dinh Province", Master Thesis of Business Administration, Da Nang University The author focuses on researching data collected from marketing for e-banking services at the branch, analyzing the statistics of the number of customers, the number of services, the distribution system, the promotion activities, customer care, thereby realizing the shortcoming of the branch's marketing activities Besides, the author also uses customer survey data on the satisfaction of marketing activities in particular and the quality of Internet banking services in general, thereby having a basis for proposing to improve the satisfaction of customers

Thus, the majority of published studies focus on evaluating commercial banking service marketing in general or approach each aspect of retail banking services sporadically—very few overall and comprehensive studies in retail banking marketing services in commercial banks In particular, there has been no research done on marketing activities to develop retail banking services at the Bank for Investment and Development

of Vietnam Transaction 1 Branch Before the above reality, the author conducted implementing the topic and ensuring the research topic is wholly not duplicated with published studies

3 Research objectives and Research mission

3.1 Research objectives

The research was carried out to analyze and evaluate the current situation of Marketing in retail banking activities at the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Transaction 1 branch From there, propose solutions

to improve the operation Marketing of Branch's Retail banking services

3.2 Research Mission

- Analyzing the current situation and assessing banking marketing activities at Vietnam Joint Stock Commercial Bank for Investment and Development, Transaction 1 Branch

- Analyzing factors that influence on marketing activities in retail banking at the Transaction 1 Branch

- Proposing a solution to improving Marketing activities in retail banking services

at Vietnam Joint Stock Commercial Bank for Investment and Development, Transaction 1 Branch in the coming time

5 Research object and research scope

- Object of study: Marketing in retail banking activities at commercial banks

6.1 Methods of information collection

In order to carry out the research objectives of the thesis, the author collects secondary information and primary information

Regarding secondary information: Secondary information is collected from the following two primary sources:

Firstly, from the research that precedes: dissertation and previous scientific research articles The purpose of collecting secondary information is to clarify the rationale for the topic

Second, information on the marketing of retail banking services of BIDV, Transaction 1 branch to clarify the current status of the bank's marketing activities in the period 2017-2019

About primary information:

Primary information is collected by distributing questionnaires to survey customers

of the bank, to evaluate customers' perception of retail banking marketing activities that

BIDV Transaction 1 is implementing The number of votes the author gave out was 250 votes; the number of votes the author collected was 234 votes Therefore, the author studied with a sample size of 234 votes

6.2 Information processing method

Information collected will be processed by Excel software to calculate and analyze data Secondary data: Secondary data are collected and processed in the form of tables and graphs to calculate and analyze to see the change of research indicators over each year

Primary data: Using the Likert scale with five levels, the author uses primary data through the distribution of survey surveys of customers about the business marketing development tools through pre-designed survey questionnaires The goal is to assess customers' perception of Marketing activities in the retail banking business of BIDV Transaction

1 branch

6.3 Methods of information analysis

Descriptive statistical method: Statistical method describes the characteristics of a bank in terms of the following: the history of formation and development, organizational structure, business results, and results from the performance of marketing and services of BIDV – Transaction 1 Branch

Comparative statistical method: The purpose of using a comparative statistical method to analyze and compare the changes of statistical data over each period and each stage to see the development of statistical data research indicators (increase or decrease of research indicators over time) In the thesis, the author uses the research period, which is the last three years, from 2017-2019 The purpose of using the comparative statistical method is to see the change of each research indicator showing the results of banking business activities and Marketing activities in the banking business of banking services

7 Thesis structure

 Chapter 1: Theoretical basis for marketing in retail banking of commercial banks

 Chapter 2: The current situation of marketing in retail banking of Joint Stock

Commercial Bank for Investment and Development of Vietnam (BIDV) -

Transaction 1 Branch

 Chapter 3: Solutions to improve marketing activities in retail banking of Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) - Transaction 1 Branch

CHAPTER 1: THEORETICAL BASIS FOR MARKETING IN RETAIL BANKING

In many countries, banking services are understood as products and services that banks provide to customers, including individual customers and small and medium business customers (Mac Quang Hung, 2010)

According to some experts at Asia Technology Center: ―Retail banking service is a system of products and services provided by a bank to a group of individual customers or small and medium business customers through the distribution channel system Besides, customers can also access retail banking services through modern means (cited by Le Cong, 2013)

According to modern banking, ―Retail banking is a type of banking service that provides products directly to individual customers, households, and small and medium enterprises‖ (Phan Thi Thu Ha, 2012)

Thus, from the above concepts, it can be understood: A retail banking service is a group of products and services that a bank provides to serve individual customers, households, and SMEs through the system of traditional distribution channels (branch networks, transaction offices) and modern (technology facilities, electronics and telecommunications)

1.1.2 Features of the retail banking service

Customers using retail banking services are individuals, households, SMEs

Target customers of retail banking services are individuals, households, and small and medium enterprises (SMEs) This group of customers is different in terms of qualifications, ages, occupations, consumer behaviors So the demand for retail banking products and services is often very diverse and plentiful Customers with a high level of education are often more interested in the value and utility that retail banking products bring In contrast, customers who rarely make transactions with the bank pay attention to the interest rates, reputation, and brand names of the banks that provide the services

A large number of customers using the service: The continuous increase of population in the country and the world is one of the factors that make the custom size of the retail banking service large Because service users are individuals, households, and

small and medium enterprises, the market potential is enormous because these are the subjects that make up a popular proportion in the population structure

The transaction value is usually small: The value of retail banking transactions is often much smaller than the wholesale banking business due to the needs and nature of retail customers, mainly individual customers, households, and SMEs

Comprehensive distribution channel system: Due to the significant number of retail customers and scattered, to provide banking products and services to these customers requires banks to build a system of distribution channels widely to promptly meet the needs of customers and reduce unnecessary costs (travel costs, waiting time)

Bank products are plentiful and diversified: Due to different types of retail customers in terms of qualifications, income, gender, social status, etc., the demand for products is also different Therefore, to meet the maximum needs of customers, banks often diversify their retail banking products and services to satisfy different customer segments, helping customers to have more choices when available the need to use the service

Retail banking services based on IT platform: In addition to traditional distribution channels, retail banking services are mainly provided to customers through a modern distribution and transaction channels: Internet banking, ATM, POS to deploy these distribution channels, commercial banks need to invest in applying information technology synchronously It is the foundation for banks to increase the utility and features of retail banking products help retail transactions to be provided quickly, accurately, and promptly, saving time for both banks and customers

Retail banking services sensitive to banking marketing: Target customers of retail banking services are individuals, households, small and medium enterprises These customers have lower access to banking services than corporations, companies, Therefore, banking marketing plays an essential role in promoting and introducing images, products and services to these customers

1.1.3 Retail banking services

1.1.3.1 Raising capital for retail customers

It is the main product and service at commercial banks, contributing to forming a capital source to serve the credit needs of customers Characteristics of capital mobilization with retail customers are as follows:

- Capital mobilization from small customers is done through current account, savings deposit, valuable papers Customers concentrate in urban areas, areas with developed economic, social, industrial and service situation

- The interest rate for mobilizing capital from small customers is not consistent between localities and times: The determination of the mobilizing interest rate is based on the socio-economic conditions, the interest rate level and the demand capital demand of the bank in mobilized areas

- Cost of capital mobilized from retail customers is higher than capital mobilized from large-scale economic organizations or credit institutions

The reason for the above characteristics is that the structure of mobilized capital is different, and the level of competition among regions is also different

1.1.3.2 Retail credit

Retail credit activity is also the main business of commercial banks, is the primary source of income for the bank through loan interest collection The economy is developing day by day, and the demand of customers is increasingly high, creating opportunities for banks to expand lending, increasing the proportion of retail customers’ loans in total outstanding loans Features of retail credit products at commercial banks include:

Large and ever-growing market potential: The population is increasing, the economy is growing, shopping and consumption need to improve the quality of life of individual customers and households The increase is the premise for the retail credit market expansion of commercial banks

- Retail customers using bank loan products are often more interested in the benefits and value of the loan than the interest of the loan

- Because the debt repayment (principal and interest) is deducted from the customer's periodic income, the ability to repay depends on many factors: health, job, salary Therefore, the standard of health and Job stability is always a prerequisite for the bank's credit

- High loan interest rate: The loan value of retail customers is often small and scattered, so to compensate for operating costs (appraisal costs, loan management costs, funding costs for loans, risks…) banks often apply higher interest rates than large corporate customers

- Major lending is quite simple, does not require highly trained staff

- The information provided by customers is often of low quality due to many subjective opinions of customers and is not verified

1.1.3.3 Card Service

Bank card service is a modern personal financial product, bringing many conveniences to users: transferring money, withdrawing money, querying accounts, paying bills The role of bank Card services are:

- Card service business contributes to increase the income of commercial banks, helps the bank to diversify products and services, and increase features and utilities for customers

- Deploying and providing card services to help the bank minimize risks in business operations because each card service transaction is of minimal value, but the number of transactions is large Therefore, the risk is shared by many small customers; the bank can resolve changes when risks arise promptly

- Card service business helps commercial banks increase their position and reputation in the market, affirming the bank's technological advancement

1.1.3.4 Remittance activities

Remittance activities are one of the professional activities of commercial banks

opportunities for commercial banks to expand the remittance market, improving the efficiency of retail banking services

Regular remittances are transferred back to Vietnam by four channels:

- Credit institutions operating in foreign exchange;

- Foreign remittance service company;

- Post and telecommunications business;

- People entering Vietnam bring cash overseas

Sources of remittances in the bank's remittance activities include:

- Overseas Vietnamese send remittances to their relatives in Vietnam;

- The employee working under a term contract abroad remit income to Vietnam

- Remittances from individual export: individuals or households, small and medium enterprises were exporting goods abroad open a bank account to receive foreign currency

1.1.3.5 Retail banking services through the Internet

Online retail banking services allow individual customers, households, and small and medium-sized businesses to use banking services through modern distribution channels: telephone, internet; network line equipment

Online retail banking services have significantly contributed to help commercial banks expand the size of the retail market, promote the efficiency of distribution channels, save time and costs, and create convenience for both customers and banks

Online retail banking services have the following roles and benefits:

- Using online retail banking, customers can actively pay bills for living services (electricity, water, rent), transfer money, and shop without going directly to the bank

- Customers can easily manage account information: query account, view balance, print statement

- Customers can order and sell securities from a distance on the stock investment market, easily monitor the situation of stock price fluctuations to make quick and appropriate decisions

- Customers can look up information about exchange rates, interest rates, stock price fluctuations

- Using online retail banking services to increase features and utilities for customers, save time and travel costs, and minimize waiting time for customers' transactions

1.2 Marketing in retail banking activities in commercial banks

1.2.1 The concept

The concept of banking marketing has been around since the second world war Banking marketing belongs to the business marketing group, which is a unique area of the service industry Currently, there are many concepts of banking marketing, so studying the different concepts of banking marketing will help forming the concept of retail banking marketing

The first concept: Banking marketing is an integrated management method based

on perceptions of the business environment, the bank's actions to meet the needs of customers, following fluctuations on that basis, to realize the objectives of the bank (Nguyen Thi Minh Hien, 1999)

The second concept shows that: Banking marketing is all the bank's efforts to satisfy customers' needs and achieve profit targets (Luu Van Nghiem et al., 2008)

The third concept is that: Banking marketing is the mental state of the customer that the bank must satisfy or satisfy the needs of customers, on that basis, the bank can achieve optimal profits (Nguyen Thi Mui and Ngo Minh, 2009)

The fourth concept is: Banking marketing is the whole process of organization and management of a bank, from detecting the needs of selected customer groups and

satisfying their needs by a system of policies and measures to achieve profit targets as expected (Trinh Quoc Trung, 2009)

The fifth concept affirms: Banking marketing is a set of different activities of a bank to direct all available resources of the bank to better serve customers' needs, on that basis, the planned targets of the bank (Nguyen Thi Minh Hien, 2004)

The sixth concept: Banking marketing is a function of governance to direct the flow

of banking products and services to selected groups of customers (Nguyen Dinh Tho, Nguyen Thi Mai Trang, 2007)

Thus, Banking-Marketing is a management organization system of a bank to achieve the set target of the bank which is to maximize satisfaction of capital needs, as well as other services of the bank to the group customers choose by policies and measures towards the ultimate goal of maximizing profits

Based on different perspectives on banking marketing, it can be understood: Marketing in retail banking is the activities of accessing the market, reaching individual customers, households, and SMEs of banks to detect demand for retail banking services From there, the bank can satisfy the maximum needs of customers, helping to bring the highest efficiency in the retail banking business of commercial banks

Retail banking marketing shows the high consistency between a bank's thinking and actions on the market, the needs of individual customers, households, SMEs, and banking capacity In retail banking marketing activies, banks need to orient the operations

of the retail customer division and the entire banking staff to the creation, maintenance and development of customer relationships

The critical task of Retail Banking Marketing is to determine the needs and desires

of retail customers and how to respond to the needs effectively more than their competitors For banks, marketing of retail banking services is a condition for promoting, bringing products to retail customers, establishing relationships, dominating market shares, and asserting brands

1.2.2 The role of retail banking marketing

A tool to connect retail banking services to the market

Market orientation has become a prerequisite in the operations of commercial banks Associated with the market, understanding the movement of the market, grasping the needs of customers as well as the ability of the bank to participate, managers can have reasonable policies to promote maximizing internal force to gain market share in retail

banking service providers The higher a bank's ability to engage with the market, the easier

it is for a bank to dominate retail banking market share

The essence of Marketing is the process of identifying the bank's capabilities and potentials as well as finding out the needs of the market, based on that, establishing specific marketing strategies and solutions In other words, all the linked activities between the banking services of the bank and the market mentioned above are under the scope of Marketing activities Therefore, it can be affirmed that the Marketing strategy is a tool to connect Retail banking services to the market

Tools to attract customers to use Retail banking services

The characteristics of banking services in general and banking services, in particular, are easy to imitate, traditional services are quite similar among banks, so it is challenging to keep the copyright Therefore, in order to create a competitive advantage, banks must continuously develop new products and services In order to successfully do this, the bank needs to have a reasonable marketing strategy, programmed from understanding customer needs to providing banking services to customers, to the maximum satisfaction of customers' needs row Therefore, marketing is considered as a tool to attract customers to use Internet banking services by providing highly socialized and community-oriented services, satisfying maximum customer needs

Tools to improve the bank's competitiveness

The market mechanism is a competition mechanism, with the continuous development of the world and domestic economy, the competitors are not only domestic banks, non-bank financial institutions but also are branches of foreign banks with many potentialities in the capital, technology and experience Banks that want to develop Retail banking services and win the competition must always pay attention to building marketing strategies

Marketing is not just about customers, but about competitors Based on understanding the competitor's potential, the bankers will make predictions about the reaction as well as the strategies that the opponent plans to implement and have solutions

to deal with Thus, thanks to marketing activities, the bank can calculate the competitor's capabilities, thereby can proactively take measures to improve competitiveness, create a position in the Retail banking business service

1.2.3 Marketing content in retail banking

1.2.3.1 Market research

The research on the banking service market includes research on service development potentials, competitor assessment, market share assessment and related impact factors The conclusion about the business environment of banking services will help managers to make correct conclusions in planning and building marketing strategies One of the essential contents of environmental research is the assessment of the market share of Internet banking services and the sales of Internet banking services Occupying these market shares reflects the effectiveness of the bank's marketing strategy

Market research, planning marketing strategies for BLB activities of commercial banks are essential and must be regularly performed by a specialized marketing department Thereby, managers can have information sources to develop policies to develop products and services in retail banking Naturally, the banking marketing department focuses on two main contents, including:

- Study of the external environment: Researching on large factors that are outside the management of banks that directly or indirectly affect the entire operation of the Marketing system Macro environmental factors include population, economy, culture, society, politics - law

- Research on the internal environment: study the factors that directly affect the bank's ability to provide banking services, these are internal factors of the bank such as capital, technology, management skills

1.2.3.2 Determine the target market

In order to select the target market in banking activities, banks need to evaluate different market segments, thereby selecting one or several market segments where the bank has a competitive advantage as the target market to decide on the distribution of marketing resources in these target market segments The assessment is based on three factors:

- Evaluate the size and growth of each segment of the retail banking market: which segment of the market has the size and growth rate by the bank's experimental conditions

in providing retail banking services

- Evaluate the structural attractiveness of the market segment: Some market segments may have the desired size and growth rate but lack long-term profit potential due

to dependence on: Competitors existing, potential competition, alternative products, and bargaining power of buyers and suppliers

- Evaluate the bank's goals and resources in retail banking operations: Some attractive market segments may still be eliminated because they are not in line with the long-term goals of the bank Even if the market segment fits their target, banks still have to consider whether there are enough resources to succeed in that segment:

After assessing the market segments, the bank selects the target market - the market where the bank has a competitive advantage in retail banking operations There are five options:

The first is: Focus on a niche Through centralized marketing, the bank will gain a foothold in that market segment by better understanding the needs of that segment When all resources are concentrated in one market segment, the likelihood of winning a leading position in that segment is high However, this option is quite risky because the demand in this market segment will decrease by time

The Second: Selective specialization In this case, the bank chooses several market segments, each with an objective appeal and is in line with the bank's goals and resources

in its retail banking operations The markets all promise to be a source of profit for the bank This strategy of serving many segments of the market has the advantage of limiting risks for banks; if a specific market segment becomes less attractive, the bank can continue

to profit from these segments other

The Third: Specialize products and services, the bank only provides some products and services for individual market segments The advantage is that it is possible to supply high-quality products, but if an alternative product appears, the risk will be high

The Fourth: Market specialization The bank focuses on serving many needs of many retail customer groups The advantage is that the bank can create a reputation in the market segment, but the risk will be high when the demand for this segment decreases

And the last is: Serving the entire market

1.2.3.3 Implement marketing mix activities

Firstly, marketing activities through products and services of Retail banking

A bank is a currency trading organization, a particular commodity Banking products and services in general and Retail banking, in particular, are the monetary services that banks provide to retail customers to meet the needs of customers (Luu Van Nghiem et al., 2008) Therefore, products of banking activities have the following main characteristics

Intangibility: Retail banking products and services are made according to a sales process that can only sell and determine the quality of products and services during and after use, so trust is an infinite important factor On that basis, the critical task of banking marketing is to build and consolidate customer confidence when using banking services

Inseparability: Derived from the characteristics of banking products and services that the process of providing and consuming products at the same time and customers participating directly in the product supply process requires marketing closely coordinating with the product and service supply department as well as determining the needs and ways

of choosing to use the customer's products and services

Heterogeneity: Banking products and services in general and retail banking services, in particular, cannot be measured and standardized, so banking services are often heterogeneous The constituents of banking products and services are the following factors: staff, technology, customers In the process of providing, banking services are subject to many uncontrollable factors due to their operations serving customers, and the bank staff cannot create the same services in different times or workspaces such as execution method, completion time, service attitude

Non-storage capacity: Retail banking products and services cannot be stored and cannot be moved from one area to another, so the supply of Retail banking products and services and the consumption of customers is limited time Therefore, the more scientific the service delivery process, the more straightforward the procedure, and the quicker the operations of the professional staff are the top criteria affecting the choice of customers

Second, marketing activities through price

Price is one of the fundamental factors determining the choice of the buyer Price is the only factor in marketing that generates revenue; it directly affects sales and profits A bank can use "price" as a tool to pursue different goals, and this tool is often used very flexibly Price is closely related to product policy, which precisely coordinates the conditions between the cost of capital input and the market The cost of banking services must be built based on estimating the total demand of customers using banking services In banking activities, prices are built for the following primary operations:

- The prices for retail funding products and services (also known as interest rates), the bank's deposit rates can be diversified in different currencies and terms, satisfying different investment needs of each customer The prices of deposit products also depend on the capital needs of the market

- Retail credit service price: because banks trade in a special item of "money", the cost of mobilized products will be the basis for the bank to set prices for output products (capital financing) The bank's retail credit service interest rates are usually priced using the following method:

Lending rate = deposit rate (or cost of capital) + a%

Where a% is called the bank's desired profit margin depends on the lender and the loan product

- Prices of other products and services: Banks often have separate service fees for individual customers and SMEs in most banking services such as payment, money transfer, collection and payment, guarantee in domestic and international, voucher credit, treasury services and other services Service prices at each bank depend on the technology and quality of service they provide to customers

Third, Marketing through distribution activities

Distribution is the direct impact on bringing a customer to the consumer of a service or delivering a service to the consumer Accordingly, members of the distribution channel include service providers, intermediaries and customers The distribution channel

of Retail banking activities is a system of branches, transaction offices, ATMs, POS of the bank with the same goal of maximizing the needs of retail customers, promoting brands and enhancing the brand name of Retail banking business performance

Distribution channels require a way to distribute products and services of banks to create convenience for customers Specific aspects of convenience in Retail banking service delivery can be mentioned: the network of branches of banks, the network of ATMs / POSs of banks The bank that has a large number of distribution channels, widely arranged, with less equipment having problems with transactions, the bank will retain and attract more customers

Because the product of banking activities is a service product, the distribution method of these products will always involve customers in the service creation process, on the other hand, the number of products and services of Retail banking is vast Therefore, the bank must have specialized divisions, the focal point for managing each specific product and product group It is indispensable to arrange the supply channel of products and services following the needs of customers in terms of location and time of the bank's service delivery Previously, most banks focused all resources on developing a network of transaction offices and branches across the country as this was considered the only sales channel for banks However, today, thanks to the rapid development of electronic

engineering and information technology, the distribution channel of banking activities have been changing significantly Banks pay attention to developing business locations, electronic sales guides, home banking and telemarketing The rapid technological change has had a substantial impact on the way of product distribution of banking activities with the way of distribution over the internet, such as online payment services, online lending, online savings

The bank's distribution of banking services reflects the bank's use of its means to bring its products and services to customers such as headquarters, machinery, equipment, agent network, appropriate transaction time Employees' qualifications, professional qualifications The choice of method of providing banking products and services must be based on assessment and analysis of specific economic, cultural and social conditions of each country, the actual capabilities of each bank and most importantly, it must be based

on the wishes of the customers

Fourth, Marketing activities through promotion

Promotion are activities aimed at changing the number of customers using banking services by having direct or indirect impacts on customers' psychology or tastes Tools used to promote retail banking include:

- Advertising: Advertising in the banking sector with the primary function of identifying service information, locating services, helping customers to be more aware of the quality and quantity of services, forming the level of expectation waiting and persuading customers to use banking services Currently, commercial banks have advertised in many forms such as through newspapers, magazines, television, radio, banners, posters, internet, sponsorship activities, individual product launches or associations

Because each form is aimed at different customers, commercial banks often apply

at the same time, many suitable advertising methods to attract customers to use the provided banking services

- Promotion (sales promotion): is a series of measures to stimulate the demand of the market in the short term, namely: giving prize code to participate in lottery winnings when trading, giving gifts, exemption or reduction in prices and new service fees (internet banking, mobile banking)

- Propaganda, public relations: Is the creation of indirect stimuli, increase the value

of the product or by giving information about the product or the bank in a positive direction for many people know the bank and pay attention to its products and services

- Direct sales: is the process of direct communication between the seller (bank staff) and customers In-service provision, in addition to meeting the needs of customers to use services, bank employees need to perform some other functions well such as: exchanging, providing more information, expensive answering questions to satisfy customers' desires

The purpose of promotion activities is to create a better perception of the bank's image from customers' view, helping the bank to create extensive relationships to expand the market and increase business efficiency gradually

Fifth, human resources

Banking services in general and Retail banking in particular, in addition to the necessary technology, machinery, and equipment properties, also require the participation

of bank staff and customers in the process of creating products Human resources providing banking services should be focused on professional training even when the bank uses the part-time staff to provide services The training of employees who are knowledgeable about banking operations and service knowledge to answer, support and advise customers is one of the highly appreciated criteria

In the banking service business, from the time of service registration, customers have to contact employees, when problems arise, customers also need answers from the bank, dealing with an employee with a professional style, open-minded attitude will be one

of the factors to impress customers well and help them appreciate service quality

The requirements for banking service staff are:

+ Understanding the basics of banking - finance

+ Regularly receive additional training to improve the expertise of products and services, especially when new technology is available

+ Applying skillfully and flexibly professional standards and professional ethics while providing services to customers

+ Rated capacity and work efficiency through customer comments on the satisfaction level

Sixth, facilities

The bank's infrastructures are headquarters, branches, transaction offices, customer service centers, service points, machinery, banking technology, uniform The characteristics of retail banking are intangible, so it is difficult for customers to imagine and evaluate whether the service provided by a bank is of high or low quality (unlike whether they come to buy a material product) Instead, they will assess the quality of the

service through the perception and evaluation of the appearance, the service attitude and the ability of the bank's employees to deal with, for example, employees transaction staff, customer relations staff, counselors or bank leaders, furthermore, through the perception of the bank's facilities such as transaction space, cleanliness, tidy, safety and convenience of transaction offices, branches, and current level of equipment when using the banking services

Seventh, the service delivery process

Business process plays an essential role in improving the quality of banking services The bank's products and services will be highly appreciated when all stages of the product supply process are standardized and quickly and effectively resolved Therefore, banks are always interested in improving and shortening operational processes to create more convenience for customers such as deposit process, loan process, payment process, ATM card process

Also, increasing investment in modern machinery and equipment, new and modern technologies, proactively improving equipment, changing old and outdated processes will increase the efficiency of the retail bank's operations In order to reduce over-reliance on human factors, commercial banks need to focus on building automated, self-service, standard business processes, and accompanying documents give detailed, specific instructions so that any employee, new or old, can provide products and services to customers or guide customers through a standardized bank process

The standardized process will help employees save working time, avoid mistakes Therefore, the development and application of international standards, standardization of operational procedures to increase the bank's operational efficiency and customer satisfaction are one of the essential tasks for any bank

1.2.3.4 Evaluation of marketing performance

Sales of Retail banking service

Marketing in retail banking activities will be assessed well when maximum satisfaction of customer needs, the high level of customer satisfaction will increase the sales of service provision Therefore, the revenue of providing banking services is spending on evaluating the results of retail banking marketing activities The higher the sales of service provision, the more meaningful the marketing activity is, and vice versa

The following formula evaluates the growth rate of retail banking service sales:

Market share of banks

The more quantity and sales of the bank's services supply to the market, the greater the market share of the bank's services For commercial banks, expanding market share is always the goal that banks aim to develop services in general and retail banking in particular Evaluating the market share of retail banking services, one can assess the market share of each type of service in a bank or assess the market share of a bank with the entire commercial banking system In the retail banking market, which bank accounts for the broader market share of the service, the more development of the bank's business, the better the marketing performance The following formula determines a bank's market share

in the provision of retail services:

Income from Retail banking service business

Income from retail banking services is the business performance of the bank, this indicator reflects the process of implementing marketing activities of commercial banks, so

it is also one of the criteria to evaluate the results of marketing activities

Income from retail banking is the amount of profit a bank earns after deducting all operating costs (capital mobilization costs; technology investment costs, human resources costs, and expenses manage ) The higher income from retail banking services and rapidly increasing over the years proves that the marketing activities of banking services are effectively implemented

Number of customers using Retail banking services

Customer expansion has always been the goal that commercial banks aim to develop their business activities To increase the number of customers, banks need to diversify products, increase utility and product features to retain traditional customers and attract new customers, all of which are marketing activities in banking services As the

number of customers using the bank's retail services increased, the scope of the bank's services expanded, proving that banking marketing activities are well done and compelling To measure this indicator, the author uses the formula of the increasing number of customers using banking services:

Capital of the bank

The bank's capital will directly affect the investment activities and expand the banking service distribution system of the bank When a bank has a large amount of capital, a bank can expand its distribution channel system, invest in infrastructure, innovate processes, research and develop products and services for banks and help improve qualifications of Technology applied in banking activities Besides, with the financial potentials and vital capital resources, the bank also helps the bank to invest more money for marketing activities, promote the promotion and introduction of products and services, thereby bringing high efficiency for retail banking marketing

The brand of a bank

The brand represents the prestige, product quality, service style and culture of each bank, which cannot be built in a short time The brand brings enormous values to each bank, especially in the context of fierce competition to win market share in service provision today The brand brings the commitment, trust, even affirms the level of the service provider, the bank itself with high-quality services, with its own culture, will create

a brand for the bank row When a bank has a high brand name in the market, affirms its reputation in customers’ view, the activities of marketing, advertising, introducing products will be welcomed and trusted by customers Since then, it contributes to improving the efficiency of retail banking marketing

Orientation and development strategy of the bank

The orientation and strategy of a bank in the banking service business will determine the development and effectiveness of marketing activities At each business stage, the bank will have the right directions and development policies, following the current domestic, world and resource situation If the bank considers the banking service business to be a key development direction and a business strength that enhances competitiveness, the bank will invest many resources in marketing, introduction and

promotion activities about Retail banking service Since then, marketing activities will be more effective due to be concerned and focused on

1.2.4.1 Objective factors

Social conditions

* Intellectual level of the people

Retail banking activities include many services provided through modern means, so the development of Retail banking activities depends heavily on the knowledge of the public about the service The literacy level here is the ability to access and use banking services and to know the utilities of banking services The more developed the intellectual level of the people, the more and more the ability to use the utilities provided by retail banking services It is an opportunity to effectively implement marketing activities in the banking business of banking services

* Residential income

The income of the population represents their standard of living and consumption needs When the income is low, the demand and the ability to spend are also low; banking services are not necessary However, as people's income increases, the demand and ability

to spend will also increase, the volume of transactions will increase, making the use of banking services to pay for arising transactions is an inevitable requirement Normally, customers with a decent and stable income, will have a higher demand for using banking services Thus, the marketing activities of Retail banking services will be more effective when people's income increases

Legal conditions

The operations of banks depend a lot on the legal environment of each country A strict unified, complete and persuasive legal corridor can ensure the interests of all participating parties; ensure a healthy competition among banks in the market, thereby creating a foundation for the implementation of marketing and service banking activities

Therefore, the marketing of retail banking services is only useful when the legal system is complete Laws are the foundation for banking operations in general and retail operations, in particular, to be carried out safely and sustainably

Economic conditions

Stable development of the economy: The stability of economic growth has a significant impact on the commercial banking services of commercial banks Stable economic development leads to monetary stability, an increase in people's income, which

are the primary conditions for expanding the use of banking services as well as promoting marketing and activities service

Organized trade and services network: The development and expansion of an organized commercial service network such as chains of restaurants, supermarkets, hotels, resorts, shops are a factor to promote pushing customers' demand for retail banking, and it

is an opportunity for commercial banks to improve the efficiency of marketing activities and increase the market share of retail banking services

1.3 Experience and lessons learned in implementing retail banking marketing activities at some commercial banks

1.3.1 Experience of some commercial banks in retail banking marketing

1.3.1.1 Experience of Vietinbank Hanoi branch

In Hanoi city, there are many commercial banks and credit institutions spread out However, Vietinbank is considered one of the leading banks for the business activities in general and retail banking in particular During the operation, the Branch's retail service business results always met and exceeded the set plan In 2019, the Branch's retail sales reached 93,638 billion VND, reaching 105% of the plan Furthermore, increased by 31.3% compared to 2018 The branch's retail market share always accounts for a high proportion compared to other branches in the Vietinbank system Achieving these positive results is thanks to the bank's synchronous deployment of marketing and banking services as follows:

- Regarding product strategy: Capturing the needs of customers, the Branch always focuses on deploying a variety of products and services of Retail banking suitable to each type of customer The branch's product portfolio includes products: fund raising, personal credit, card products, electronic banking, and others For capital mobilization products, Vietinbank Hanoi branch offers customers ten different options Branch's credit products are flexible in terms, attractive interest rates, and fast procedures, contributing to attracting

a large number of individual customers Currently, the branch has deployed eight products for personal lending—products to serve consumer needs and serve the production and business activities of customers Loans with a long term and flexible interest calculation method bring customers many conveniences To meet customers' non-cash consumption needs, the bank also provides customers with many services such as debit cards, international cards, credit cards

- Regarding pricing strategy: Vietinbank Hanoi branch develops a flexible service pricing policy, suitable for each customer segment With a large group of customers,

recurring transaction frequency and considerable transaction value, the branch has proposed the head office to apply a preferential policy of interest rates for deposits and loans Thus, they were creating an essential mentality for customers, attracting many individual customers to use the banking services provided by the branch

- Regarding distribution strategy: Currently, the branch manages all 18 ATMs arranged at convenient locations for customers Also, since September 2016, the Call Center system of Vietinbank has been put into operation with the task of receiving and solving all problems and complaints of customers, the guidance of hostilities, comfortable customer support quickly finding out information, freely choose products and services according to needs, provide latest product information, services, and preferential policies Transactions anytime, anywhere, saving time, transaction costs, the confidentiality of customers' information

- About service process: Over the past years, Vietinbank Hanoi branch has continuously renewed the process and services towards simplicity, compactness, and reduction of cumbersome procedures, facilitating customers to deliver At the same time, set out the orientation to promote the development of banking activities at all transaction offices managed by the Branch with the implementation of investment in technology projects: LOS, Core banking Sunshine in order to improve the service quality online retail banking, better meeting customers' needs Service delivery processes are deployed quickly and more conveniently for customers, ensuring customer satisfaction and helping the bank

to save time and costs for each transaction

- Regarding human resources: Over the past years, Vietinbank Hanoi branch has continuously opened training courses for employees so that employees can understand the organizational structure, retail strategy, system of retail business processes, skills in designing and developing products and services, skills in managing and selling all retail products in the retail business, communication skills for customers service, negotiation skills, writing business, fundamental rights and obligations After each training course, the branch evaluates the results of training scientifically and seriously, evaluating the progress

of employees after training courses based on the quality and effectiveness of the work, from there More appropriate training books help improve the working efficiency of Branch staff, creating a premise for the development of retail banking business

1.3.1.2 Experience of Techcombank Ha Thanh branch

In recent years, the business of Techcombank in general and Techcombank - Hanoi branch in particular, has obtained many positive results Rated as a private commercial

bank with the highest market share of retail banking services in the market, Techcombank Hanoi branch has continuously improved the technical infrastructure system, implemented synchronously marketing activities of products, human resources, distribution channels, service processes The marketing strategies of banking services have implemented as follows:

- Regarding product strategy: Techcombank Hanoi branch constantly researches and recommends the Branch manages the deployment of new retail products and services that suit customer needs in the area as well as friendly with the channel system distribution Currently, the branch is providing all 78 retail products and services with

investment; insurance services; electronic banking services; transfer and receive money

- Regarding pricing strategy: In addition to the application of flexible pricing policies, guided and directed by Techcombank Head Office, Hanoi branch, also deploy a variety of service price incentives to attract customers Typically, from 2017 to 2019, the branch has implemented preferential programs on service fees such as: "Zero fees" for individual customers using card services; ―Unlimited 1% cashback for debit cards‖ has led

to a rapid increase in the number of customers who register to use the branch's banking services, and the bank's market share for card payments also rises to the top

- Regarding the infrastructure system: In order to improve business efficiency in general and banking services in particular, Techcombank Hanoi branch has continuously invested in modern technology infrastructure From 2017 to 2019, the branch completed the IFRS9 technology project, meeting the requirements of compliance with safety standards and security in providing banking services, at the same time, deploying comprehensive data connection on SBV credit centers by Host-to-Host method From here,

it helps the bank to be completely proactive in looking up customer information using banking services, improving customer security, minimizing operational risks, optimizing usage, managing, business Retail banking services

- Regarding distribution channel system: In addition to researching to expand modern and traditional distribution channels, Techcombank Hanoi branch has established a customer care division operating independently from other departments Customers who call the Branch will be consulted, instructed and introduced thoroughly by the customer care department about information related to the product for free At the same time, customers' inquiries and complaints are also satisfactorily resolved by this department, and promptly, customers do not have to wait too long to connect with the operator

1.3.2 Lessons learned for the Joint Stock Commercial Bank for Investment and

Development of Vietnam (BIDV) Transaction 1 Branch

Based on the successes in marketing and developing retail services, lessons learned for BIDV Transaction 1 branch are as follows:

Firstly: building an overall strategy to develop retail banking products and services based on market research, identifying the bank's capacity and development goals in each period At the same time, it is necessary to define the itinerary of developing banking products and services in each period and the conditions of the bank

Secondly, in terms of infrastructure, focusing on technology development, researching and proposing the deployment of new and modern retail products and services

to serve the group of customers with high incomes and high levels

Thirdly: regarding the banking service process, innovate the procedures and operations, simplify the paperwork and procedures to create convenience for customers to use the service Improve the quality of customer service, carefully grasp information about each customer using the Branch's retail services, mostly traditional customers, loyal customers

Fourth: on human resources, building a management apparatus, personnel structure

of departments in a reasonable manner, ensuring the right arrangement of people, the right expertise to serve the work Regularly open training classes, short-term training courses for human resources at the Branch, especially for new staff and for new product launching

Fifth: on service prices, apply flexible service pricing policies, have different pricing strategies for each customer segment, deploy preferential service pricing programs for important customers

Sixth: on the distribution channel, perfecting the network of branches and transaction offices with a compact model to quickly increase capital resources, quickly and effectively respond to the demand for using Internet banking services of the people and strengthening links with commercial bank branches in the area to meet the transaction needs anytime, anywhere so that customers can use such as placing orders, making payments, querying information based on commitments between banks customers and customers

Seventh: advertisement, promotion and implementation of specific and clear promotion activities to promote the bank's image and brand name At the same time, it is the training of a team of professional and modern bank staff to market the products and services of Retail banking to increase the rate of access to each customer

CHAPTER 2: THE CURRENT SITUATION OF MARKETING IN RETAIL BANKING OF JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV) - TRANSACTION 1 BRANCH

2.1 Introduction to the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV)- Transaction 1 Branch

2.1.1 History of formation and development

"Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) - Transaction 1 Branch (formerly known as Transaction Center 1 - Bank for Investment and Development of Vietnam), was established on March 28, 1991

Over nearly 30 years of establishment and development, as of December 31, 2019, BIDV Transaction 1 has made significant progress in terms of scale and operational efficiency

Details: total assets reached 101,690 billion (up nearly 260 times);

Outstanding loans reached 21,875 billion VND (up 0.27% compared to 2018); Capital mobilization reached 39,985 billion VND (an increase of more than 7.58% compared to 2018); Profit reached VND 1,251 billion (an increase of 54% compared to 2018), achieving the highest average labor productivity per capita in the system "

Not only leading in business activities, but BIDV Transaction 1 branch is also a branch that plays a crucial role in the network development of BIDV in Hanoi From Transaction 1, 8 branches were split and established Up to now, it can be said that most of these units continue to maintain stable and sustainable growth in Hanoi area

With outstanding achievements in business activities and an annual contribution of over 10% of the profit of the whole BIDV system, in the ten consecutive years 2009 -

2019, Transaction 1 Branch is always recognized as the Flag first in the entire BIDV system and achieved noble awards from the Party and the State such as Labor Hero Title in the ―Doi Moi‖ era, Labor Medal First - Second - Third class, Flag and Certificate of Merit Prime Minister It is also concrete proof of the successes and essential contributions of Branch of Transaction 1 to the development of the BIDV system in particular and the economy

in general

Up to now, BIDV Transaction 1 Branch has 15 professional departments and five transaction offices with nearly 300 officers and employees The ATM (automatic teller machine) system is connected to the BIDV's transaction offices nationwide, forming a complete network serving customers using the bank's services Organizational model of the Branch is continuing to be perfected towards modern banks based on applying information technology to form channels of distribution of credit products, capital mobilization,

services In the recent years, QUACERT and TUV NORD certified the branch for applying the quality management system according to ISO 9001 for most of its products and services (Deposit, Remittance, Trade Finance, Card, IBMB) The operations have been performed according to a unified process to ensure transparency, openness, clear responsibility for each participant, avoid troubles for customers and serve as the basis for building and upgrading the program business processing software

As of December 31, 2019, BIDV Transaction 1 Branch has a total of 267 staff members, of which professional qualifications: Overall, the quality of employees of BIDV Transaction 1 Branch is always appreciated BIDV Transaction 1 Branch is a training place for leaders of BIDV branches in Hanoi area Officials here always appreciate and strictly follow the regulations of BIDV as well as the State

Customer

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2 Business

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4 Business

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5 Business

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6 Individual

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1 Individual

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RISK MANAGEME

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OPERATING DIVISION Credit management department Customer transaction department Treasury &

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INTERNAL MANAGEME

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FINANCIAL PLANNING DEPARTMENT

ADMINISTRATIV

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DIVISION OF SUBSIDIARIE

S

Quoc Tu Giam Transaction Office Ngo Thi Nham Transactio

n Office Kham Thien Transactio

n Office Hoa Binh Transactio

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Chart 2 1 Organizational structure of BIDV Transaction 1 Branch