Solutions for developing e banking services at agribank tay do branch

Instead of going to the bank to carry out many cumbersome and time-consuming procedures, you only need to register for e-banking services to make money transfers and online payments - He

CHAPTER 1: LITERATURE REVIEW OF ELECTRONIC BANKING

SERVICES 1.1 Overview of commercial banks

1.1.1 Definition of commercial banks

Today, many concepts of commercial banks are proposed depend on the development history of the banking system and researching aspects

Based on types of services that commercial banks provide, Prof Peter S Rose defines: “Commercial banks is a type of financial institution that provides the most diverse list of financial services, especially credit, savings, payment services and performs larger range of financial functions than any other business organizations in

the economy.” (Peter S.Rose (2004), Commercial Bank Management (Translation),

Financial Publishing House, Hanoi)

In terms of main activities of commercial banks, the definition of commercial banks is understood as follows: “Commercial banks are organizations which established under the provisions of law, trading in monetary field with the regular operation is receiving deposits in many different forms, and using this amount of money for credit, provide payment services to economic entities aming at profit.” (Associate Prof PhD Tram Thi Xuan Huong, M.Sc Hoang Thi Minh Ngoc (2013)

Commercial banking textbook, Ho Chi Minh University of Economics, Economic

Publishing House)

Within the scope of this thesis, the author uses the definition which is extracted from Commercial banking textbook of Ho Chi Minh University of Economics, and this definition is used throughout the thesis because of its high relevance in the Vietnamese banking system

1.1.2 Function of commercial banks

a Credit intermediaries

The main operation of commercial banks is borrowing for lending This proves that one of the important function of a commercial bank is acting as a credit intermediary, that is, on the one hand, the bank will mobilize idle money on all subjects in society from businesses, organizations, households, individuals,…on the

other hand, the bank will use this borrowed capital to relend to entities that need additional capital By this way, commercial banks will be the bridge between the temporary capital-deficient entities who need to borrow, thereby creating benefits for all three parties: depositors, banks and borrowers Commercial banks will make their own profit from the gaps between the loan interest rate and the lending interest rate This profit is the basis and condition to ensure the existence and development

of the bank

Figure 1.1 Capital flows in commercial banks

(Source: Summarized by author)

Through the credit intermediaries, commercial banks contribute to the utility

of all participants and the general benefits of the economy

- For depositors: they gain the benefit from the temporarily idle capital in the form of deposit interest that the bank pays them Moreover, the bank guarantees them the safety of deposits and provides convenient payment services

- For borrowers: they will be satisfied the capital needs for business, spending, payment without incurring a lot of expenses

- For commercial banks: they will seek a profit from the difference between th deposit interest rate and the lending interest rate

- For the economy: this function plays an important role in promoting economic growth

other revenues according to their commands In here, commercial banks play the role of “treasurer” for businesses and individuals because they hold their accounts Commercial banks perform payment intermediaries on the basis of performing credit intermediaries Because through the receipt of deposits, the bank has opened

an account for customers to track revenues and expenses That is the amount of money to help customers make payment via the bank, place the bank in the intermediary of payment Besides, the direct cash payment among economic entities has many limitations like risks in money transportation, large payment costs, especially for remote customers, and this created demand for customers to make payment transactions via banks

c Representative money creation

Representative money is a non-material currency, essentially just numbers on

a bank account which are created through the credit activities of the commercial banking system This currency type can be easily converted to cash, has the same function as cash and other advantages that are safe, easy to transport and preserve The representative money creating process of commercial banks is conducted through the credit and payment activities within the banking system, in close relationship with each country’s Central Banking system It is the ability to turn the initial deposit level at the first bank received deposit into a large amount of money when performing multiple credit payment transactions through many banks Commercial banks make the representative money from the Central Bank If there are no constraints, the ability to make representative money is unlimited However, under the control of the Central Bank, commercial banks only create representative money within certain limits

d Implementation of national economic policies

Despite the independent commercial banking system, it is always under the strict management of the Central Bank in all aspects In particular, commercial banks must always obey the regulations of the Central Bank on the implementation

of monetary policy to stabilize the value of money, make the amount of money supply in the economy must match the needs of society To do this, the attraction of domestic and foreign capital through commercial banks must be used for the right

purposes and requirements of the economy Credit generated from commercial banks must be effective on the basis of lending to expend production, develop trading, create jobs for workers and contribute to the implementation of social policy targets of country

1.1.3 Operation of commercial banks

of the difference of input and output deposits between customers’ accounts in the process of capital flows, therefore, the bank can earn from these differences

+ Term deposits is a type of deposits that customers deposited into banks and there is a prior agreement on the withdrawal time This type of deposits is relatively stable as the bank can determine the withdrawal time for paying to customers on time, hence, the bank can use fully that deposits for business purposes With this deposit type, the bank has many maturities from 1 month, 3 months, 6 months…., which helps customers choose the appropriate term of deposits with the amount of idle money that they have Commercial banks have the right to use term deposits in

a certain time period, so this type of deposits are paid with higher interest rates than demand deposits

+ Saving deposits is a type of deposits that customers deposited into banks for earning interest When customers sends their idle money into the bank, they will be provided a savings book that they have to manage and bring it in each transaction time In essence, savings deposits is a part of the income of individual employees that they have not consumed yet, which is a special form of accumulating money instead of storing golds and goods In some industrialized countries, this is a common type of deposits with high stability due to the deposit term lasting from one year or more, and this leads to the initative of the bank in the purpose of long-term capital To attract this capital, banks often have to pay high interest rates

- Mobilizing capital by issuing valuable papers such as bonds, promissory notes, C.D (Certificate of Deposits) and other valuable papers

+ Bond issuance is a commitment to certify the issuing bank’s debt repayment obligations (both principal and interest) to bondholders with the aim of raising medium and long-term capital under the management of The Central Bank, regulators on the stock market and this may be dominated by the bank’s reputation + Promissory note is a short-term valuable paper (less than one year), which has same characteristics with bonds but with a shorter term, so it is used for short-term capital mobilization by commercial banks

+ Certificate of Deposits is the paper which is confirming the periodic deposit

at a bank The owner of this paper will be paid interest periodically and receive enough principal until the expiration date After the issuance, the certificate will be circulated in the money market

+ A number of other valuable papers are issued to attract capital from abroad (EURO DOLLAR), characterized by both mobilizing capital and paying interest plus principal in dollars Banks use this type of valuable paper to attract short-term mobilized capital (3 months) Commercial banks when raising capital in the form of issuing valuable papers have to pay higher interest rates than deposit rates so when issuing, commercial banks must base on the output to decide the deposit amount, interest rate, maturity and appropriate method of mobilization

- Mobilizing capital from the State Bank or other credit institutions: This is the capital that commercial banks get through borrowing relationship between

commercial banks and central banks, between commercial banks or with other credit institutions, which is a costly capital source, therefore, the mobilization of this capital source is not really common, only in case of necessity such as the lack

of available short-term capital

- Mobilizing capital from issuing shares: This is the capital that commercial banks gained by issuing shares to public by its benefits: rapid capital increase, attracting customers, improving the quality and popularity of the bank In addition, the fact that commercial banks issue shares to raise capital is mainly related to the bank’s long-term development strategy and has high advantage over other conventional businesses because of its high professionalism and great reputation in the financial market This can help commercial banks create and develop better relationships with commercial banks or other financial institutions and issue shares themselves and reducing cost of raising capital via issuing shares in the future

b Capital using

The main activity of the bank is seeking capital to use for making profit The use of capital is the process of creating many different types of bank assets, most of which are used for credit activities, investment and service provision

- Credit activities: This is the main and most important business activity, accounting for the largest proportion of total assets, reflecting the typical activity of the bank which is lending, bringing the largest income source for the bank In this activity, the bank transfers the right temporarily to use the capital to the borrower, after a period of time, the borrower is obliged to repay both principal and interest to the bank In addition, credit activities also include a number of other related activities e,g handling of loan security assets, lending interest rate exemptions, guarantees, factoring, financial leasing, discounting, rediscounting of short-term valuable papers

- Investment activities: Commercial banks also invest in making profits such

as contributing capital to enterprises, buying and selling securities in the market or lending in the interbank market to take advantage of idle capital

- Service provision: In addition to the above two activities, a commercial bank

is also an organization that provides many banking services such as providing

payment instruments, making domestic and international payments, cash delivery to customers and retail banks,…With diverse types of services, the bank has gained a significant source of revenue, and this revenue is taking up a larger proportion increasingly in a bank’s total income

- Providing insurance services, setting up affiliated companies or ventures to conduct insurance business according to the provisions of law

joint-1.2 Overview of electronic banking services

1.2.1 Definitions of electronic banking services

Recently, not only commercial banks is defined in many different ways but also electronic banking services are understood in many terms

Sadaf Firdous and Rahela Farooqi said, “Online banking is an electronic payment system that allows customers or financial institutions to control financial transactions on websites which operated by that institutions Online banking can also be understood as electronic banking, virtual banking.”

Meanwhile, Mahmood Shah & Steve Clarke define electronic banking “as a form of describing all forms of financial service delivery from an organization to their customers Customers may be individuals or other businesses.”

Within the scope of this thesis, the author uses the definition of Mahmood Shah & Steve Clarke due to the more general definition of the form as well as the object of customers using electronic banking services, and this term is also used throughout the thesis

1.2.2 Characteristics of electronic banking services

Electronic banking services include the following characteristics:

- Fast transaction processing speed: Electronic banking services allow customers to make transactions in the shortest time possible With the influence of the fourth technology revolution, electronic transactions allow customers to conduct transactions and confirm transactions quickly and promptly The information about banking services such as stock quotes, interest rate announcements, exchange rate fluctuations, portfolio management,…is updated quickly and accurately by the bank, helping customers manage their assets and investment portfolio effectively Besides, the current processing time for a transaction is decreasing, along with the development of information technology Nowadays, banks are focusing on upgrading the Core-banking system to be able to bring the most stable electronic banking products and services, providing the fastest transaction processing time to satisfy customers

- Unlimited in time and location:

Customers do not need to go to the bank to sign papers, write deposit notes, wait in line They just need to perform transactions on the computer or make a phone call at home, work or a cafeteria Therefore, customers can save a lot of time travelling or wating for transactions Just in a few moments, with modern means of transmission, customers were able to check accounts, pay service fees, transfer money, perform payment transactions for goods,…to capture promply the investment and business opportunities Through e-banking, banks can link with online sales businesses to buld online payment gateways, in conjunction with state administrative agencies providing online government services This is a quick and convenient form of payment, a motivation for promoting e-commerce development E-banking also helps banks expand their ability to serve customers Customers can conduct transactions 24/7 anywhere they want with only a stable internet connection Through e-banking, banks can quickly provide services without having

to open more branches in the country as well as abroad, saving infrastructure costs

- Increasing customer care: With e-banking services, banks can provide more value to customers Customers can be completely satisfied with payment services, shopping, money transfer, quickly and effectively Thanks to the utilities gained from information technology and the Internet, banks will create certain strategies to

attract new customers, retain customers who have been using banks’ services,

thereby becoming loyal customers of the bank

- Low transaction costs: The cost of customer transactions with commercial banks through the electronic banking system is much lower than that of customers conducting direct transactions with bank staff

Table 1.1: Transaction costs in some types of banking service

Through counter

Through Call Center

Through ATM

Through E-banking

(Source: Summarized by author)

Customers can save travel costs and do not have to pay service fees when performing online transactions with the bank Electronic banking is suitable for customers who are always on the move, prefer independence, busy and have less time to come to the bank or the amount per transaction is not much

In addition to saving travel costs, reducing the opportunity costs by saving time1, e-banking services always have the lowest fees comparing to other fees at a bank Since the bank itself does not incur costs for hiring locations, expenses for staff salaries, administrative costs, accounting expenses, inventory costs, etc when applying e-banking services, customers can enjoy a much lower user fee Many transactions can be made on the Internet: Check account balances, transfer funds between accounts, pay utility bills, download account’s information, trading securities, conducting financial investment activities, checking cash balances, interest on deposits and other new services without having to go to transaction offices or bank branches

- Mostly rely on technology infrastructure but contains technological risk factors

The e-banking services themselves are designed based on links of information technology and banking data All services that you want to use must be connected to the Internet or electronic devices such as computers, phones, ATMs To use e-

banking services, customers need a computer or network access device Through the web browser, customers access the bank's website and access the account, perform transactions with the bank without having to install any other supporting software Therefore, e-banking is a service associated with information technology elements However, it is also at risk from these modern technologies, because the more modern the technology is, the easier hackers can create viruses or intrude data theft Therefore, if e-banking services do not have good security capabilities, they will suffer greatly from this risk

- Depends on the user’s level of knowledge

In addition to relying on technology infrastructure, customers using electronic banking require skills in using ICT in addition to social awareness Customers when dealing with banks should be fully aware of the operations using computers or Internet-connected devices, how to connect to the network, open browsers, search for related information on banking products and services With e-banking services, each transaction is done almost instantly without the guidance of bank staff This requires customers to have certain awareness and prudence when trading via electronic banking

- Lack of support from bank staffs

With E-banking, customers have to manage accounts by themselves and conduct banking transactions on the Internet Nowadays, every banks’ website have been updated with all the information about the bank, its service as well as detailed instructions to help customers conduct transactions smoothly Customers use the information provided by the bank and conduct their own transactions without any direct contact with bank staff This helps banks to serve many different types of customers at any time without recruiting additional sales staff, thereby saving personnel costs as well as expanding and maintaining costs

- Globalized services

Developing electronic banking services contributes to savings for the economy and increases integration into the world’s economy With the support of the global Internet, customers can choose unlimited goods and services in a country, thus, e-

banking services will help internationalize the banking image and shows the potential developments of itself

With the above characteristics, author can show partly the important role of banking services for customers, banks and economy This is also the theoretical and practical basis for banks to focus on developing electronic banking services

e-1.2.3 Role of electronic banking services

The rising of advanced electronic payment services helps increase rapidly the capital flows and better meet the payment needs of the rapidly changing economy That will make more money flows into banks, more diversified and turn to a non-cash economy soon

a For the bank

E-banking services help the bank save costs, improve its performance, reputation and competitiveness, therefore:

- Helping banks reduce the burden on administrative procedures and operations, bringing high productivitiy to the bank Commercial banks deploy that electronic banking services will reduce paperwork, operating costs and speed up transactions Moreover, commercial banks can also reduce the number of personnel

at the counter and operational errors

- Helping commercial banks to expand their operations, increase their competitiveness and can also implement globalization strategies without opening branches abroad

- Contributing to increase the capital source for commercial banks: The more advanced the non-cash payment system is, the more capital the bank will mobilize from economic organizations Besides, through the non-cash payment, banks can update exactly the capital situation of payment entities to lend them on time, right purpose and ensured by goods

b For customers

- Customers can contact the bank quickly and conveniently to perform a number of banking services at any time and anywhere This is significant for customers who have less time to go to the bank, individual customers with a small number of transactions with banks, small and medium-sized businesses

- Allowing customers to make and confirm all transactions quickly and conveniently with high accuracy Instead of going to the bank to carry out many cumbersome and time-consuming procedures, you only need to register for e-banking services to make money transfers and online payments

- Helping customers save costs by lower fees than direct transactions at banks

- Customers can access and manage all bank accounts on one website

c For the economy

With the goal of integration and technologization, electronic banking is one of the products which contributes to promoting economic development and catching

up with the modern world trend

- Contributing to stabilizing monetary circulation costs

The implementation of non-cash payment in Vietnam and many countries today has helped to increase the proportion of non-cash payment in the cash flow, reduse the amount of cash and the necessary expenses in circulation, direct impact

on the market, prices, control inflation and proceed to monetary stability The expansion of non-cash payments will increase the amount of book money and reduce the amount of cash in circulation, thereby reducing the cost of printing money, counting, transporting, preserving money for the whole society in general and for the banking industry in particular

- Increasing the speed of capital circulation, improving economic efficiency for related entities

When saving transaction time, the accuracy is also improved Therefore, electronic banking makes payment and money transfer faster, so that the capital flow is more efficient In particular, in the trend of promoting online public revenue and expenditure, commercial banks provde electronic banking services in association with state budget revenue unit (insurance, customs, tax) and this will help the collection work faster, more convenient and achieve higher efficiency

- Accelerating integration, keeping up with the trend of digital technology in the world

Around the world, electronic banking services take place very early Therefore, the fact that Vietnamese commercial banks are now strongly promoting

electronic banking services has helped the country’s economy catch up with the trend of modernization

1.2.4 Categories of electronic banking services

a Internet Banking

Internet Banking is a service providing product information and banking services via Internet connection To use the service, customers need to register with the bank and will be given an username and password When you want to perform transactions, you only need a personal computer with an Internet connection Not only can customers check account balances, they can also use a range of online services such as buying insurance contracts, investing in securities, paying bills, transferring accounts, etc

This service is provided to both individual and corporate customers The bank supports e-commerce between businesses and all moneytary transactions, opening letters of credit between importers and exporters, opening letters of guarantee are all done online Customers do not have to go to the bank but can still perform transactions, therefore saving time for both customers and the bank

b Mobile Banking and SMS Banking

This service is the bank provided through a server system and management software located at the bank, the link with customers through call center services based on specific operational guidance with customers

First of all, this system mainly serves a small number of of transactions With Telephone Banking, customers can sit at home or work using the phone to call the bank's Phone-Banking system Then the system will automatically guide and provide information about products and banking services In addition, customers will be provided with a password to access the system to know the latest transactions and current account balance

To increase their own competitiveness, many commercial banks also offer mobile banking services (Mobile Banking), helping customers access the bank anytime, anywhere With Mobile Banking, customers who want to receive information about products and services of the bank will send a message to the Mobile Banking system and the bank will reply to that message When a transaction

is made on an account, the system will automatically send a notification message to the customer's phone However, to use this service, customers' mobile phones need WAP (Wireless Application Protocol) support to access the bank's WAP WAP is a small form of website used exclusively for mobile phones When making payment orders, customers will compose a message with a certain syntax and send it to the bank's processing center according to a specified code After confirming the correct customer information, account balance, the bank will send a message asking customers to enter the password Having entered the correct password, the bank will perform the transaction, and will then send a notice to the customer The whole process of performing a transaction only takes approximately 20 seconds

SMS Banking is an application that allows customers to update, check their account informations and register new information about interest rate, exchange rate,…by sending messages to the bank’s private number

c Home Banking

Home Banking is a strategic development of e-banking services With the slogan "24-hour banking service, 7 days a week", this application is a remarkable advantage comparing to the traditional banking model This service is highly secured because it operates on the local communication network (Intranet) between banks and customers Home banking services are built on one of the two platforms: the system of application software (Software Base) and Web technology platform (Web Base) Through the server system, Intranet network and client computers, financial information will be established and encrypted, exchanged and verified on demand In addition to making a difference, attracting customers, the system also provides updated information about goods, services, special announcements, entertainment information,

d Automatic Teller Machine (ATM) and Electronic Funds Transfer at Point of Sale (EFTPOS)

ATM is connected to the computer network of each bank or inter-bank to automatically support customers with services such as account information, cash withdrawal, money transfer, changing PIN code Currently in Vietnam, ATM is mainly used for cash withdrawal, money transfer and information inquiry The

development of this ATM system will gradually reduce the work for the bank's staff, replace cash usage habits and other non-cash utility services, and help banks and customers save money significantly Therefore, banks will have more time to consult their products to better meet the needs of customers

POS is a type of terminal installed in shops, supermarkets, gas stations, where customers use cards to pay for goods The seller will slide the card across the card machine The card holder’s information will be transferred to the reader, and then to

a central switchboard The information on the card is encrypted to ensure safety After the bank checks the information that the card is valid for payment, the processor of the buyer’s bank will send the license number to the Central Call Center and from there to the store The customer's deposit account will be automatically debited and the retailer's account will be credited accordingly after a period of time

Table 1.2: Products of electronic banking services

Internet Banking The service provides automatic informations, banking

products and services through the Internet With a device connected to the Internet, customers can visit the bank’s website to update information related to policies, terms of service, perform account transactions, check transaction history, look up information about interest rates, exchange rates, bank promotions, payments and money transfers

Mobile Banking Allowing banks to perform many types of transactions

with simple and convenient operations right on customers’mobile phones

SMS Banking Allowing customers to look up account information,

register to receive the latest information from the bank via messages

Home Banking Allowing customers to perform most transactions with

banks e.g money transfers, listing transactions,

exchange rates, interest rates, debit and credit notes,….at home or at work

ATM/POS With ATM/POS, customers can make cash withdrawal

transactions or transfer money to buy goods at supermarkets and shops without using cash at stores that accept card usage

(Source: Summarized by author)

1.2.5 Advantages and disadvantages of electronic banking services

a Advantages

Saving costs for banks: From an economic perspective, e-banking services

help banks save maximum costs related to transactions, payments, travel costs, Moreover, when developing e-banking services, banks will reduce the burden of opening branches and transaction offices, so the cost of renting premises, staff costs, equipment,…is reduced, but can still ensure the customer service quality

Improving the efficiency of the bank’s capital using: Through electronic

banking services, payment orders and collection orders of customers are implemented quickly, speeding the process of money-goods exchange Quick money transfer speeds up the circulation of goods and currencies and also improving capital efficiency

Expanding the scope of banking activities: The combination of improving the

quality of traditional banking services and electronic banking services allows banks

to access quickly with modern and effective management methods, therefore helping the bank diversify products, increase sales, improve operational efficiency and competitive position Besides, e-banking services also help commercial banks implement the strategy of "globalization" without opening more branches It is a tool to vividly and effectively promote the brand of commercial banks

Providing full-service packages: With a modern banking model, which is a

multi-purpose business, the ability to provide different products to different customers is very high In particular, e-banking services can provide cross-service, that is, the bank may associate with insurance companies, securities companies, and

other financial companies to offer products and services in order to meet the needs

of a customer or a group of customers related to banking, insurance, investment

Improving the ability to take care and attract customers: The utility from

application technology and Internet that has attracted and kept customers to use services and perform transactions with banks E-banking has the ability to attract customers on a large scale, anywhere and anytime This has caused customers to become "close friends" with the bank

Quickly and conveniently for customers: The effect of e-banking services is

that customers can do transactions anytime and anywhere, saving time for customers Customers who have little time to directly come to banks, small and medium-sized enterprises, and individual customers with not much transaction volume prefer this type of service Besides that, e-banking helps customers monitor and manage capital better by querying account information, helping customers avoid the risk of losing transaction documents

Safe, flexible and economical: Customers will not have to bring cash directly

to the bank like traditional transactions, thus limiting the risks during transportation When losing the means to transact via electronic banking (card, PIN ), all information about the customer's account is still guaranteed to be safe and confidential In addition, through account statements, customers can easily check and manage their spending Moreover, the standardized service provided by e-banking should avoid differences in service quality in different banks or even in the same banking system due to inequality in staff performance as well as the service attitude of individuals In addition, the cost of electronic banking transactions is considered to be low (most banks charge a transaction fee below 11,000 VND/ month), even zero-fee transactions (banks in Vietnam today do not charge customers for registering for e-banking services)

technology, network technology, all transactions of customers are performed online via network, with new concepts such as electronic wallets and electronic vouchers, smart cards which will give rise to capital, technology, safety, security, risk prevention issues…

Expensive investment capital: In order to build and develop an electronic

banking system, the bank must spend a lot of capital on investing in the system and technical infrastructure up to several million USD, and accompanying it is the development software management system, training human resources This process depends greatly on the financial potential of the bank, while not all banks have enough financial resources to invest This is one of the current difficulties in modernizing the bank

The process of confidentially and safety of customer data is still cumbersome, too many stages which cause trouble for customer: All data, databases of e-banking

transactions must be archived, the opening and closing of customers' accounts must

be paid attention to, changes in access rights, scope of access and limits allowed for transactions requires customers to have the corebanking software and the ability to store data sources safely, fully, completely and accurately; must develop a process

of controlling data safety in e-banking operations and apply necessary measures to ensure the confidentiality of customer information Because there are too many things to pay attention to, it is very difficult to avoid errors in the process of operating and implementing the process

Potential systematic risk: Currently, the level of economic development is

directly proportional to the level of science and technology, therefore the banking system can be completely violated, counterfeited or fraudulent at any time Encryption program and electronic signatures in the operation of electronic banking still have certain vulnerabilities

1.3 Developing electronic banking services

1.3.1 Definition of developing electronic banking services

Developing electronic banking services is the growth in the scale of providing e-banking services and increasing the proportion of revenue comes from this service group to total revenue of the bank, in order to improve the service quality and

ensure the satisfaction of customers’diversified needs based on risk control and increase business efficiency in accordance with the objectives and business strategies of the bank over each period

1.3.2 Set of criterias to evaluate the development of electronic banking services

1.3.2.1 Qualitative norms

 Simple and quick procedure

As the technology becomes more modern, banks will have software and applications to help customers access and use the service easily, quickly and conveniently Compared to traditional transactions, transactions via e-banking system are much faster, each transaction via ATM takes only a few seconds, saving customers time and money and reduce the amount of paperwork and procedures at the bank itself Customers take the initiative of when to perform transactions, even outside office hours This brings great benefits to customers

 The satisfaction of customers

Customer satisfaction with the service is synonymous with the fact that the bank can fully meet customers’ expectations Satisfaction is a psychological state where customers perceive results after using products at or above their expectations The value of services received by the customer is based on the overall service chain, the staff’s quality, the competitor's activities, the level of knowledge and the level

of customer service understanding Customer care is essential for the bank to satisfy the needs and desires of its customers, that is, to serve its customers the way it wants to serve and retain the customers it currently has

 Reliability level of E-banking service

Just a fault or a system malfunction can cause the whole system to stop working This affects the reputation and income of the bank In order to help customers be more confident about the quality and accuracy of the services the bank provides, that bank can provide customers with evidence of people who have used the service, expert advice, or provide specific documents that describes each step of the service, customers’ experience, and compensation during the implementation of the service if errors occur

 Risk management in e-banking service activities:

Risks in the operation of electronic banking is the possibility of losses when conducting electronic banking activities Risks in e-banking include intentional and unintentional actions during the course of operation, affecting the reputation of the bank, causing loss of banks assets and customers Controlling these risks will contribute to perfecting the development of electronic banking services

- Operational risk: arising from the potential loss due to the lack of completeness and reliability of the system, banks can be attacked from the outside

as well as from inside

- Reputation risk: arising from negative public opinions about the bank or when customers encounter obstacles in the process of using new services and when customers are not provided with sufficient information about how to use this services This can lead to the damage of capital mobilization or loss of customers Therefore, when a commercial bank is complained by a customer about a certain issue, it is necessary to solve that customer complaint as quickly as possible

- Legal risk: arising due to the process of performing electronic banking services that do not comply with the law at a certain time such as money laundering transactions, hackers,…resulting in consequences e.g loss of customers, loss of assets, etc

1.3.2.2 Quantitative norms

 Number of customers using E-banking services

This index is used to analyze the growth of customers using e-banking services, showing that the bank has focused on market development and, therefore, creating the correct strategies to attract customers to use e-banking services The number of customers using the service and the growth of the number of customers

is as high as possible This index is used to calculate the growth rate of customers and compare that speed over years

Growth rate of customers =

 Customer segments

The target of customer segmentation shows the situation of using electronic banking services at the bank for each type of customers by different industries and ages, thereby identifying and comparing the growth rate of each target group over the years and in the whole period As mentioned above, if the growth in the number

of customers reflects the bank's strategies to attract customers to use its products and services, the data on the growth of the number of customers in each target group will help the bank to have a more detailed view of the overall electronic banking service When the bank has grasped who its potential customers are, the bank will implement specific solutions to increase those potential customers, and at the same time adjust and change them to suit those with less interest in the bank Increase in customers by each segment = Number of customers this year – Number of customers last year (figure of the same segment)

 Revenue from E-banking services

From the data on service revenue collected over each year, the bank can calculate the level of increase in revenue from electronic banking products and services, thereby assessing the revenue coming from this service in each period The higher the revenue growth rate, the better the efficiency of electronic banking products and services

 The proportion of electronic banking revenue in all types of services and the growth rate of this proportion

This indicator shows the level of profitability in the service structure of the bank through the percentage of revenue from e-banking services and service revenue of the entire bank A high ratio means that the revenue from electronic banking products and services plays an important role in the overall structure of banking services

1.3.3 Factors affecting the development of electronic banking services

1.3.3.1 Outside the commercial banks

Table 1.3: Affecting factors of electronic banking services

Outside the commercial banks

1 Social environment Socio-economic development level (income

per capita, population,…)

of electronic banking products and services

Inside the commercial banks

1 Financial capacity Operation scale, capital (capital size, ability to

mobilize capital, use of capital) of the bank, investment cost of facilities, modern technology,

2 Products and services Prices and fees related to products and

services, the diversity and abundance of different types of electronic banking services

network service

The branch’s network system, level of modernization of branches and transaction offices within the bank

4 Banking technology The development of technology within the

bank, related to the speed of processing large volumes of transactions, the safety, accuracy and applicability of science and technology of each bank

enthusiastic) of human resources

customer care

Promotional activities, marketing products and services to customers, communicating information to the public about the capacity, reputation and utilities of e-banking products and services as well as taking care of customers has been using services, attracting customers wishing to use services

a Social and economic environment

As the economy develops, the quickness and utility of the service are highly appreciated This can be considered as the first important factor leading to the formation of electronic banking services In order to meet the increasing demands of customers, the services had to change to catch up with the demand, by which traditional banking services were no longer able to meet Therefore, electronic banking was created as a useful solution It fulfills the requirements, desires of customers within the shortest time, bringing convenience to customers

Associated with the socio-economic development is the level of knowledge and acceptance of electronic banking services along with the development of the intellectual level, the living standards of the people are increasingly improved This

is also the foundation for implementing electronic banking services When people's lives are improved, services have conditions to develop If people live on a low income, they probably won't care about banking services They will use cash instead

of using electronic payment services One of the obstacles in the process of implementing electronic banking services is the people's habit of using cash Customer's understanding and acceptance are the criteria of the service to be achieved rather than the offers and benefits offered by the service provider To further promote the development of the service, we need to show customers the popularity and how to use this service Therefore, economic development, improvement of living standards and changing habits of people are also one of the priority issues in the development of electronic banking services

The development of the economy and the expansion of cooperative relationships make a competition environment increasingly fierce, more and more competitors are showing up (not only domestic but also foreign competitors) Competition forces commercial banks to pay attention to the development of products and services, especially e-banking services to enhance their competitive position in the financial market Competition makes banks offer more modern products and services to better satisfy customers' needs

b Infrastructure, science and technology

The corollary of the digital development of information technology is electronic banking, especially electronic computer engineering Therefore, to develop e-banking services, it is necessary to have a solid information technology infrastructure, especially the national telecommunications infrastructure, which must be stable To be able to use these infrastructures, banks must also invest in modern equipment and machinery such as servers, workstations, computer systems, networks, transmission lines to meet needs of electronic banking model in deploying and developing corebanking, data security, ensure smooth operation of the system and risk provisioning in case of necessity

Technology is a key factor that determines the development of the electronic banking system and increase the competitiveness of each bank Not only is the result of the development of digitalization, the introduction of electronic banking is also a consequence of the development of electronic information technology applied

in businesses Banks will rely on electronic banking model to develop their own specific services together with improving service quality, which depends on the current technology level Therefore, if the technology level is not advanced, the quality will be difficult to improve Correctly identifying the importance of technology will help the bank to have good business development strategies, ensuring international standards on banking transactions in the operations of commercial banks

c The increase of competitors

Ngày nay khi dịch vụ ngân hàng ngày càng phát triển thì các ngân hàng luôn phải triển khai các sản phẩm dịch vụ phù hợp với nhu cầu của khách hàng Khi

nhiều ngân hàng cung cấp các sản phẩm dịch vụ ngân hàng điện tử giống nhau với phương thức hoạt động giống nhau thì ngân hàng nào tạo được hiệu ứng tốt với khách hàng hơn, ngân hàng đó sẽ có lợi thế Điều này buộc các ngân hàng thương mại này phải cạnh tranh lẫn nhau để giành được lòng tin của khách hàng

1.3.3.2 Inside the commercial banks

a Financial capacity

Financial capacity is crucial to the bank's operation scale, the cost of investing

in facilities, modern technology, etc The greater the capital, the greater the trust in the public and the ability to mobilize the bank's capital In contrast, low capital leads to unsecured capital adequacy ratio, leading to high risks in banking business Vietnam's commercial banking system, including state-owned commercial banks in general, has a small capital scale and the financial capacity is much lower than that

of foreign banks Therefore, the services provided by commercial banks are still limited, especially those requiring modern technology

b Products and services

In addition to providing many quality products and services to customers, customers are also interested in the costs associated with products and services It can be easily seen that many banks now offer the same type of products and services, but only a few can attract customers This is mainly due to the policies on fees and prices for their products Banks need to pay more attention to this issue and come up with appropriate policies, otherwise it will greatly affect the provision of services in this increasingly competitive market

c Organizing the service network of banks

The network of banks' service will affect the provision of e-banking services

to customers Banks with a wide network of modern branches will make the banks’ operation become more convenient, especially in payment services and ATM / POS Because the size and nature of the operations of banks varies widely, each bank organizes its own network There are banks only organized with a few branches concentrated in the developed economic region, whereas there are banks that organize branch networks throughout the countryside with thousands of branches, large and small (banks of Big4 group)

d Banking technology

The rapid development of science and technology has a strong impact on all aspects of socio-economic life, changing perceptions, production and business methods of many fields and economic sectors including the bank itself Modern technology facilitates the development of banks to diversify services according to the increasing demands of customers, while at the same time helping banks carry out large volumes of transactions quickly, safely and accurately The current electronic banking service is a testament to the type of service using advanced technology, and the development and application of banking technology in business activities are the basic factors that make up the difference in the service capacity of each bank

e Management level and quality of human resources

In the trend of increasingly competitive competition today, if technology is considered a factor that makes a breakthrough and differentiation for services, one

of the important factors affecting the improvement and development of banking services is the management capacity and the quality of human resources Human resources are an important factor affecting the development of electronic banking services, especially staff with a high level of information technology and foreign languages Because e-banking services require employees to know computer skills

in order to master and control the system of machines and networks E-banking services also require banks' network management skills in dealing with problems arising in the process of network transmission, ensuring customers' account safety against the destruction of hackers or cyber criminals Foreign language proficiency

is also important because e-banking is a highly internationalized service that serves not only domestic customers but also foreign customers In general, banks with high-quality, young, dynamic and enthusiastic human resources will be good conditions for developing electronic banking services

f Marketing activities and customer care

Because most of the customers of e-banking services are individuals, the promotion and marketing of products and services play an extremely important role for both banks and customers Enhancing the transmission of information to the

public helps customers update information about the bank's capacity and reputation, basic knowledge about e-banking services, understanding how to use the service and the benefit of banking products and services In Vietnam, banks with strong internal forces and modernization are mainly concentrated in big cities, and the fact shows that e-banking services are more popular in these areas than in the countryside A bank with strong internal resources will be able to develop banking services, especially e-banking services, thereby enhancing its competitive position

SERVQUAL Model: This is the most popular model in the service quality model According to Parasuraman, the quality of service cannot be determined generally, it depends on the customer’s perception of the service and this perception

is considered based on many factors The SERVQUAL Model is based on perceptions of service quality as a comparison between expected values, expectations and perceptions This model includes the following variables:

Reliability: Demonstrated by the ability to deliver consistent and timely services from the first time

Responsiveness: The desire and willingness of employees to provide services

to customers

Service capacity: Determines each staff’s professional qualifications to perform the service Service capacity manifests itselft when employees interact with customers, employees directly perform services, research capabilities to relevant capture and necessary information for customer service

Approach: Making customers easily to access services such as shortening customer wait times, service locations and convenient opening hours for customers Politeness: Related to the hospitality of employees

Information: Concerning communication with csstomers in a way they can easily understand and listen to issues related to them e.g service explanation, costs, complaint handling questions…

Trust: Expressing the ability to make customers trust in the company or bank This ability is reflected in the reputation of the company/bank and the attitude of staffs when communicating directly with customers

Safety: Concerning the ability to ensure the safety of customers, reflected in the physical, financial security as well as information security

Customer understanding: Demonstrated by the ability to understand and grasp customers’needs through understanding customer requirements and creating close relationships with customers

Tangibles: Identified through appearance, service attire, support equipment and services

e-SERVQUAL Model: Expanding the concept of SERVQUAL Model of Parasuraman and his colleagues, an unique concept of electronic service quality through the Internet (Zeithaml and his colleagues (2000-2002) was established with

7 factors: effiency, synchronization, reliability, protection of personal data, responsiveness, reimbursement and contact, is called e-SERVQUAL Nowadays, when the level of science and technology is advanced increasingly, more and more researchers are interested in e-SERVQUAL Model and they established their own definitions In 2002, Yang and Jun asserted that the quality of electronic services is influenced by 6 factors: reliability, accessibility, ease of use, personalization, reputation and security Subsequently, Trocchia & Janda (2003) approached from a general perspective on the quality of Internet Banking services, which identified 5 factors includes performance, connectivity, safety, sensibility and information Based on existing researches on the e-SERVQUAL Model, Gerrard & Cunningham (2015) conducted a more detail study of customer satisfaction with the quality of electronic banking including accessibility, reliability, responsiveness, safety, service situation and staff quality

However, the above researches have only approached in terms of services provided by the bank through websites, not in specific application yet Based on

these studies and the practical situation of the implementation of e-banking applications in Vietnam, these applications are focusing on following aspects: reliability, responsiveness, tangibles, service capacity, service charges and empathy

of bank staffs towards customers

H2: Responsiveness of e-banking services will have a positive relationship with customer satisfaction: ready to help customers use e-banking services and support quickly

H3: Tangibles of e-banking services will impact in the same direction with the level of customer satisfaction: expressed through practical means observed to serve the electronic banking system

H4: The service capacity of e-banking services will have a positive impact on the level of customer satisfaction

H5: The empathy of e-banking staff will impact in the same direction with the level of customer satisfaction: caring, answering and responding to customer requests on e-banking

H6: Service fee levels and prices of e-banking services will impact in the same direction with the level of customer satisfaction

1.4.3 Emperical review

In recent year, there have been many economic models which research about factors affecting the quality of e-banking services from many researchers Despite the same interest in e-banking services, each researcher proposed the model with different factors at different banking locations

Table 1.4: Researches about e-banking services recently

Name of researcher

– researching year

Ho Diem Thuan,

2012

Vietinbank Da Nang branch

branch

- Electronic technology instruments

- Reliability

- Accessibility

- Empathy

- Service Capacity Ngo Thi Phuong Vi,

(Source: Summarized by author)

Although the quality of e-banking services has been studied at many commercial bank branches in Vietnam, this type of service has not been studied in any stage at Agribank Tay Do branch, and this has created a sizable research gap With the increasing emphasis on e-banking services due to the increasing the bank’s current revenue, the study of the model of evaluating e-banking service quality at Agribank Tay Do branch is necessary

CHAPTER 2: ELECTRONIC BANKING SERVICES AT AGRIBANK TAY DO

BRANCH IN THE PERIOD 2017-2019 2.1 Overview of Agribank Tay Do branch

2.1.1 Establishment and development

On February 29, 2008, with the purpose of continuing to expand operations of Hanoi Bank for Agriculture and Rural Development to meet the increasing financial and banking needs of the economy, Agribank Tay Do branch was established under the Decision Decision No 144 / QD / HĐQT-TCCB and officially put into operation

on April 1, 2008 Agribank Tay Do was formerly Tay Do transaction office of Agribank

in Southern Hanoi branch, dependent on Vietnam Bank for Agriculture and Rural Development

Branch name: Vietnam Bank for Agriculture and Rural Development - Tay Do branch

Director of branch: Nguyen Cong Minh

Address: 36 Nguyen Co Thach Street, Mỹ Đình 1 ward, Nam Tu Liem district, Hanoi, Vietnam

Tel: 024.38379636

Fax: 024.38379640

Transaction offices:

+ Transaction office No 1: No 21,23,25 Van Tien Dung St., Phuc Dien Ward, Bac

Tu Liem District, Hanoi, Vietnam

+ Transaction office No 2: 41 Doan Ke Thien St, Mai Dich Ward, Cau Giay District, Hanoi, Vietnam

+ Transaction office No 5: No 6 Lot A1-A2, Le Duc Tho St., My Dinh 2 Ward, Nam Tu Liem District, Hanoi, Vietnam

On October 5, 2018, the Board of Directors' Decision No 949 / QD-HDTV-TCTL regulating the adjustment of Class II branch officially came into force, Dan Phuong branch (with two affiliated transaction offices Tho An and Tan Hoi) under the

management and administration of Agribank Tay Do branch, Tay Do branch became Class I branch

- Dan Phuong Secondary Branch is directly under Agribank Tay Do Branch:

Branch name: Vietnam Bank for Agriculture and Rural Development - Dan Phuong branch

Address: 27 Nguyen Thai Hoc St, Phung town, Dan Phuong district, Hanoi, Vietnam

Transaction offices under the branch:

+ Tho An transaction office: Tho An commune, Dan Phuong district, Hanoi

+ Tan Hoi transaction office: Tan Hoi commune, Dan Phuong district, Hanoi

2.1.2 Functions and business line

Vietnam Bank for Agriculture and Rural Development Tay Do branch is operated under the role of a monetary intermediary, whose main business includes monetary trading, credit, banking services and other activities stated in the Bank's Charter Agriculture and Rural Development of Vietnam Some specific fields of activity are as follows:

- Capital borrowing: receiving demand deposits, time deposits, savings deposits in VND and foreign currencies of economic organizations and people, issuing valuable papers

- Providing short-term, medium-term and long-term loans in both local currency (VND) and foreign currencies, guarantee, payment and trade finance, trading, cash and foreign currency collection, issuance and payment of cards and e-banking services

- Other activities: consulting and financial investment, financial leasing, brokerage, issuance and depository of securities, securities portfolio management

2.1.3 Organizational structure

Figure 2.1: Organizational structure of Agribank Tay Do branch

Source: Summarized from General Department of Agribank Tay Do branch

2.1.4 Business results of the Agribank Tay Do branch in the period of 2017-2019

+ From residences 4,320 62.8 4,472 55.2 5,266 53.0

Source: Capital Planning Department of Agribank Tay Do branch

In the period of 2017-2019, the total borrowed capital of Vietnam Bank for Agriculture and Rural Development Tay Do branch fluctuates constantly over the years

In 2018, total deposits reached 8,103 billion VND, increased by 1,221 billion compared

to 2017 (equivalent to 17.4%) One year later, the amount of deposits has increased by 1,833 billion compared to 2018, but the increase was higher than 2017, reached 22.6% The upward trend in the period is explained by change in the scale of operation of the branch in 2018 In the 3rd quarter of 2018, Dan Phuong branch became secondary branch

of Tay Do branch, the association rose the capital of the whole branch Moreover, due to geographical advantages (located in the new urban area of My Dinh, near lots of commercial shopping malls) with relatively spacious infrastructure and young staffs has attracted a large number of customers from businesses adjacent to the branch This is the reason which raises capital from residences and economic institutions over the time, however, the growth rate of the capital borrowing from economic institutions was higher (the rate in 2019 increased by 10% compared to 2017)

The data shows that deposits in foreign currencies (almost US dollars) not only reach the low proportion of the capital structure in the currency but also have a strong downtrend In 2017, Tay Do branch borrowed 455 billion (converted) foreign currency (accounting for 6.6% of total capital), but in 2019, this figure was only about the equivalent of 55 billion (converted), accounting negligible importance in the capital structure The cause of this decrease is due to dollar deposit interest rate ceiling at 0%, the USD / VND was stable and make the psychological speculation of foreign currency decreases

2.1.4.2 Capital lending

Table 2.2: Capital lending at Agribank Tay Do branch in the period of

2017-2019

(Unit: bil VND)

Amount (bil VND)

Source: Accounting & Treasury Department

Total outstanding loans during 2017-2019 fluctuated significantly, increasing from VND 1,764 billion in 2017 to nearly double, reaching VND 3,306 billion in 2019 As well as the results of capital mobilization, the increase This was due to the influence of Dan Phuong branch and transaction offices becoming the second level branch of Tay

Do For term loans, the proportion of short-term loans tended to decrease over the period (from 81.9% to 74.0%) but still accounted for a high proportion in the structure of term loans Reducing the proportion of short-term loans and increasing the proportion of medium and long-term loans also means higher margins, thereby strengthening the overall profitability of the entire branch The proportion of medium and long-term loans at 26% in 2019 is not too high, not capable of posing risks to the system Outstanding loans in local and foreign currencies of the branch are still quite

stable, not much change, the domestic currency still accounts for most of the branch's outstanding loans

Bad loans at Agribank Tay Do branch due to the overall increase of bad debts in the banking market in this moment, but the proportion of bad loans/total outstanding loans was at the low level, bad debt corporate customers were VND 92,806 million, accounting for 2.8% of total outstanding loans, while non-performing loans for individual customers were VND 39,929 million, accounting for 1.2% / total outstanding loans, while the Bank's provisions on bad debt ratio is regulated by the government is below 3% , indicating that the branch's ability to recover debts is still at the allowed level As mentioned above, the potential risk is currently almost unavailable, so the revenue for handling risks at this time is also very low, insignificant compared to the total outstanding loans, reflecting a relatively good credit activity of Tay Do branch The reason for the sharp increase in the revenue from the risk handling over the years (from VND 200 million in 2017 to VND 25 billion in 2019) is that the whole Agribank system

in general and the Tay Do branch of Agribank have strengthened their review and development formulating and training regulations on seizure of collateral, resolving disputes related to collaterals, selling bad debts to asset management companies of credit institutions (VAMC) at market prices, exempting reducing outstanding interest according

to the principal repayment term, thereby encouraging customers to create sources of debt repayment , linking bad debt handling with support, creating conditions for customers to restore production and business

Especially, if you compare the performance of capital borrowing and lending in Agribank branch Tay Do in 2019, it can be seen that the lending activity of the bank has not yet reach their full potential when their borrowed capital sources at branches in 2019,

it will reach about VND 9,936 billion while the loan outstanding is only about one third, reached VND 3,306 billion Therefore, Agribank leaders Tay Do branch should set

up some measures to enhance lending activities, support customers in the process of using services at the branch

2.1.4.3 Business result

Table 2.3: Business activities at Agribank Tay Do branch in the period of

2017-2019

(Unit: million VND)

Targets 2019 2018 2017

Difference 2019/2018 2018/2017

Revenue 757,514 648,279 479,306 109,235 16.8 168,973 26.1 Expense 664,205 563,476 401,813 100,729 15.2 161,663 28.7

(Source: Accounting – Treasury Department)

Both revenue and expenses from business in Agribank Tay Do branch had an upward trend in all the stage In the year 2017-2018, revenue and expenses increased sharply from 479,306 million VND to 648,279 million VND (similar to 26.1%) with the revenue and from 401,813 million VND to 563,476 million VND (similar to 28.7%) with expenses This result comes from the change in structure and scale of Tay Do Branch in this time: Dan Phuong Branch became the Class II branch of Tay Do In the next step, the growth rate of revenue and expenses went down because of the stability of financial situation after the adjustment in Agribank Tay Do branch The growth rate of revenue decreased to 16.8% and the growth rate of expenses fell to 15.2%

2.1.5 Orientation of Agribank Tay Do branch in the future

a For the year 2020

- Focusing on capital sources, striving to reach the borrowed capital of over VND 15,000 billion, focusing on the capital of some units such as VNPOST, VNPT, VTV, Expressway Corporation, VAMC

- Continuing the work of assigning plans to each unit and individual, in which

each individual officer mobilizes at least 1 billion dong / year

- Develop outstanding loans to old customers, not to generate bad debts

- Recovery of debts Bad debts written off, the debt was sold VAMC: collect a

minimum of 45 billion

- Ensuring discipline, discipline, cadres comply with professional procedures

- The provision, transaction office summarizing business activities, assess the

present have done, not done, develop a plan for 5 years to follow and propose solutions for implementation Review, emulate, propose reward and finalize salary to the staff in accordance with the salary applicable at the branch

b Long-term orientation

With the vision of becoming the largest modern bank in Vietnam,

developing safety - effectiveness - sustainability and international economic integration, Agribank prioritizes the following objectives:

- Maintaining and developing the position of a leading financial and credit service provider for agriculture, rural areas and farmers

- Implementing effective restructuring, standardize processes and regulations of Agribank according to international practices

- Establishing flexible mechanisms and policies, in line with market changes and the movement of the economy, constantly developing products, human resources and distribution channels

2.2 The development of electronic banking services at Agribank Tay Do branch in the period of 2017-2019

2.2.1 Overview of electronic banking services at Agribank Tay Do branch

Some electronic banking services at Tay Do branch:

2.2.1.1 E-mobile Banking

Agribank E-mobile Banking is a smart mobile application developed by Agribank

in cooperation with VNPAY, allowing individual customers to easily perform financial transactions, experience payment utilities, and purchase anytime and anywhere places including outside office hours, holidays, public holidays and New Year holidays

Useful properties of the product

- Consult information, receive notifications of balance changes, history, transaction reports

- Authenticate transactions safely and securely with Soft OTP

- Internal transfer, interbank 24/7

- Pay bills: electricity, water, telecommunication, cable TV, tuition

- Top up mobile phone (VnTopUp)

- Convenient payment by QR Pay at more than 50,000 stores and websites

- Send lucky money / money to friends and relatives

- Book flights, train car , hotel reservations, buy movie tickets

- Investment management, securities information, interest rate lookup, exchange rates, ATM locations, branches, transaction offices

2.2.1.2 Internet Banking

This is a banking service to promote activities and provide information about the bank's activities, products, services, interest rates, refer to the instructions to customers via the website http://agribank.com.vn

Utility of the product

- Look up account information, transaction history

- Transfer within the system, inter-bank

- Open / close an online deposit account

- Pay bills (electricity, water, tuition, telecommunications ), pay electronic taxes, top up e-wallet, phone

2.2.1.3 SMS Banking

Agribank SMS Banking is a telephone banking service provided by Agribank With this service, users can use it to look up account information, look up Agribank balance on mobile phones, make statements of the last 5 transactions by composing a message on their posted mobile phones sign without spending time going to Agribank bank counter to make the transaction

Registration conditions: own a payment card or deposit account at Agribank, own a valid ID card/passport