CHAPTER 2: ELECTRONIC BANKING SERVICES AT AGRIBANK TAY DO
2.3. Evaluating the development of E-banking services at Agribank - Tay Do branch in the period of 2017-2019
2.3.1. Advantages
2.3.1.1. Agribank E-mobile Banking and SMS Banking services
It can be seen that the traditional SMS Banking and Agribank E-mobile Banking services still held an important position for customers when the modern applications on the phone came to the throne because of its convenience and ease of operation.
According to preliminary observations during practice at the branch, the majority of consumers to subscribe to services or payment cards in the country are choosing SMS banking services together. Agribank E-mobile Banking service, though implemented later
but brought positive results, this is reflected in the number of customers and the number of transactions at the bank is constantly increasing day by day and always reaches the significant growth. By the end of 2019, Vietnam has nearly 62 million Internet users via mobile devices and nearly 300 million mobile subscribers. This requires commercial banks, especially Agribank Tay Do, to apply modern information technology to meet the higher demands of customers. However, this market is facing fierce competition. It is the participation of foreign financial institutions, even those that are not banks but e- commerce companies, payment intermediaries, e-wallets or network provider.
Commercial bank in general and Agribank Tay Do in particular need to apply strategies suitable to the tastes of service users.
Currently, transactions on E-mobile Banking are mainly simple, fast, compact and not time-consuming. Customers perform mainly basic transactions such as balance inquiry, view transaction history, make money transfer, or basic financial transactions such as bill payment, phone top up, percentage of this transaction accounted for 80% of the total number of transactions on electronic banking. For advanced services, the frequency of use is less due to the complex nature of the business, which requires high accuracy, while customers do not really trust and be proficient in using electronic banking services.
2.3.1.2. Internet Banking and BankPlus
From the statistics listed above, it is possible to see the level of customer interest in the Internet Banking service that the branch offers, reflected in the increasing number and sales of transactions. Although the revenue generated does not account for a high proportion as other e-banking services that the Branch provides, it partly reflects the change in service quality, innovations, and feature upgrades on the website, from retail products to wholesale products. Instructions for using the same regulations, activities, news are regularly updated on the website, Agribank will be able to provide information to customers as quickly as possible and effectively.
2.3.1.3. Administration of electronic banking services is strictly implemented
The management of e-banking services is divided into separate divisions: students, enterprises and individual customers. Agribank Tay Do has performed quite well in implementing business activities in accordance with specific conditions of the branch. The inspection and control activities are focused more, so the errors are gradually controlled, the number of inspection cases and complaints from customers decreases over the years, helping to ensure asset safety and creating trust for customers.
2.3.1.4. The number and structure of customers using services tends to increase Data on the number and structure of customers registering to use the service at Agribank Tay Do branch has shown that the attraction of customers for E-banking service segments is increasing in all user segments. Especially after branch Dan Phuong become secondary branch of Tay Do branch, the distribution network also follow that up, customers become more varied. This shows that the customer policy implemented by the branch has certain efficiency.
2.3.2. Disadvantages
2.3.2.1. Not assessed the development trend of E-banking services at the transaction offices of the branch
Data at transaction offices No.1, No.2 and No.5 (Tay Do level I branch) and Tho An, Tan Hoi (Dan Phuong Branch) have not been separated by the data division.
Therefore, on the structure chart, the proportion of E- banking services is always around 0%, it is impossible to accurately assess whether the e-banking service segment develops well or not in the area of transaction offices. This causes a disadvantage not small for the room transactions, creates confusion for customers who register to use the service at this place because they think that the service is not deployed in these transaction offices.
2.3.2.2. Sales have grown over the years but not commensurate with the potential of the branch
Although the revenue earned from E-banking services at Tay Do branch in 2017- 2019 has increased, but the significant increase only in a few certain service packages such as Internet Banking or Bankplus, the overall achievements. The proportion of revenue of the service group in general has not increased much, in which
the headquarters of Tay Do branch has spacious infrastructure (the intersection of Nguyen Co Thach - Tran Huu Duc), professionally trained employees. Most basically, near the densely populated areas and their cultural level is also increasing. The proportion of revenue services at branch Tay also inadequate compared to some particular branch in Hanoi. Therefore, electronic banking services increased but not commensurate with the potential of the branch.
2.3.2.3. Processing time for customers in some cases is not fast
In some cases the client want to complaint about the congestion, change the information on the ID/passport or the minus charged too many times for no apparent reason, staffs travel back and forth or call to ask each other, ask other branches or take a long enough time to search for documents to resolve the customers, waste too much time of customers, even though users still have not solved the problem of the service they are having.
2.3.2.4. Products are not diversified to meet customers’ needs.
The product does not have many new features compared to competitors, the utilities are even more limited than joint-stock commercial banks such as Vietcombank, BIDV, Techcombank ... Maximize on the Internet or via phone, ATM. As the digital age has grown, people have improved their skills, information technology, Internet and modern services to themselves, and to create pressure to compete with rival banks as well as to respond. With such increasing demand from users, almost any e-banking service Agribank has. Commercial banks are now trying to proactively find new payment methods and become more and more convenient for users. While some other banks also have some other utilities such as Phone-banking, virtual assistant function (Chatbot) , fingerprint on/off, friend contact update (Vietcombank) , mailbox features on customers’
phone to send inquiry requests (BIDV) or transfer money by ID card (Techcombank), the E-banking features of Agribank still stop at "enough" for customers, and "new" is not. There are still some inadequacies in Internet Banking and Bankplus products that make some older customers feel awkward in downloading applications using the service.
2.3.2.5. Network congestion, communication line failure, lack of security throughout the information still exist
Today, the demand for users' electronic services is higher and higher, the information technology system must also be increasingly upgraded and developed. With a customer base increased over time, the system plated ng spot- g must increasingly be upgraded, but now at the customer at Agribank branches Tay only complaint any errors in transmission speeds or network. The application was stuttered, the branch has not yet resolved . Moreover, errors related to the network system also bring some unnecessary consequences, interrupting customer payment transactions, even some cases where customer data is stolen also cause the situation. users lose injustice money, sway customers' confidence in e-banking services, reduce the reputation of the branch.
2.3.2.6. There have not been many utilities for enterprise customers when using the service at Agribank Tay Do branch
While the continuous competitors have utilities for Agribank 's corporate customers segment (enterprise customers) , E-banking features of Agribank Tay Do for customers of these competitors, even for corporate customers of Tay Do branch is quite small, just simply stop in the search transaction history, check account balances, transfer , pay bills, look up interest rates, terms , recently added electronic tax payment service while banks like Vietcombank and BIDV had this utility before . With the advantages of a wide network, a large total assets, the race for Agribank will have its own strengths, but the real barrier when developing services at Agribank in general and Tay Do branch in particular lies in the fact that customers are familiar with traditional transactions and not familiar with payment operations on the system. But what is more important is the barriers from banks, banks that enhance marketing, increase the offering of product and service features so that institutional customers know the bank has been providing. Such services, motivating purchases and using services , make customers more aware of themselves . A service is provided with a standard procedure to collect is not too many customers because customer satisfaction is the deciding factor of the service.
2.3.3. Cause of disadvantages
2.3.3.1. Competition with other major banks in the area
As mentioned at the beginning , My Dinh new urban area is home to many of the general high-rise apartment, the focus centers populated with enough class, different segments. The rival banks also grasped this, building many branches and transaction offices around the area. Specifically, within a radius of 3 km, Vietcombank has up to 4 branches and transaction offices (Pham Hung, Cau Dien, My Dinh, Nguyen Co Thach), BIDV has 3 branches and transaction offices (The Manor Building, Tu Liem Small &
Medium Industrial Area, Cau Dien) and Techcombank are 5 branches and transaction offices (My Dinh, The Manor, Tran Binh, Nguyen Co Thach, Nhon Street). Therefore, customers will have a lot of choices for using E-banking services. This means comparing psychological customers will also arise, requiring Agribank Tay Do branch making more methods to minimize this comparison.
2.3.3.2. Products and services are not much different from other banks
The statistics of e-banking services at the four major banks, Agribank, Vietcombank, BIDV and Techcombank, clearly showed the status of Agribank in general and Agribank Tay Do in particular at this time , which is almost What services does Agribank have, other banks also have, customers are not nearly impressed with Agribank with a specific service. Therefore, creating a new and convenient service package for customers is what Agribank Tay Do expects in the future.
2.3.3.3. Customer service officer do not have enough accumulated experience for handling situations
The employees who directly perform transactions and payments in Tay Do branch are mostly young people who have not met all the situations in banking transactions, sometimes they do not fully understand about the service. IT staff are usually directly in charge of this e-banking service, so they or related departments such as Service & Marketing are knowledgeable about the service. This means that the coordination between functional units is not good, cause it does not meet the needs of
customers, especially in the case of complaints, influence the level of information Customer idea for Agribank Tay Do branch.
2.3.3.4. Technology system has not been properly invested
Compared to other leading banks in e-banking services such as Vietcombank, VPBank, and ACB...Agribank has not bravely invested in the application of information technology, modernized banking technology, and developed services. e-banking services and the most specific evidence for this lack of courage is that Agribank in general and Agribank in Tay Do in particular have not been able to overcome the current congestion situation, while other banks have Having a pretty good technology background, rarely encounter this situation . In addition, VPBank or Techcombank now has a form of depositing money into an ATM without having to go to the bank, and Agribank has not yet implemented this form. However, Agribank's development policy in the coming years will become a leading center of technology and e-service provision, so technology elements will be expected to invest more in the future.
2.3.3.5. The branch focuses primarily on the individual customer market
The number of individual customers using e-banking services at Agribank Tay Do accounts for more than 90% of the total number of customers using the service is due to the utilities developed by Agribank targeting individual customers such as : personal credit cards, SMS Banking, ATransfer, VnTopUp, APayBill ... have received positive support and feedback from customers. With the current young population, access to utilities from information technology is very easy, so this service is growing fast and strong. T seaweed while the products of electronic banking services for corporate customers, who have not fully meet the needs of this group. According to my observations during the internship, representatives of businesses who wish to print additional accounts will always have to go directly to the bank and contact Customer Service counters while this demand is currently quite good. Mrs. Nguyen Thi Thanh Hue, Vice Manager of Services and Marketing Department, said: “If we calculated on the total number of business customers coming to Agribank Tay Do branch, over 90% customers come here to check and print supplementary books. On average, every day staffs must
receive and solve supplementary books printing for more than 30 customers, E-banking has not supported the supplementary book issues directly via electronic application”.
Accordingly, electronic banking service at Agribank branches Tay currently does not have the function checking statement online for corporate customers on phone applications , and working to the bank just to print ledger sometimes makes business customers feel annoyed and lose time. With high demand, Agribank Tay Do can fully integrate more services on Internet Banking or Agribank E-Mobile Banking by business customers with diverse business activities, the high demand for capital rotation, short-term capital transfer time,...if only stop at consulting information about exchange rates, interest rates...As at present, it is not enough.
From the situation of developing E-banking services of Agribank Tay Do branch with the causes and limitations in the period of of 2017-2019, chapter 3 will provide specific, feasible solutions to help Agribank Tay Do branch can complete e-banking services, dominate the market share and improve competitive position.