THESIS MBA
TOPIC

SOLUTION OF PAYMENT CARD SERVICES
DEVELOPMENT IN BANK FOR INVESTMENT AND
DEVELOPMENT OF VIETNAM - HANOI BRANCH


REPRESENTATIONS
The project “Solution of payment card services development in Bank for
Investment and Development of Vietnam - Hanoi branch” is my own research.

The data and results of the project are my own collection and using my knowledge
and discuss with our instructors to complete this project.


CONTENTS
REPRESENTATIONS.................................................................................................................... 2
MỤC LỤC....................................................................................................................................... 3
INTRODUCTION.......................................................................................................................... 8
1. Urgency of topics:.................................................................................................................. 8
2. The research objectives...................................................................................................... 9
3. Research Object and Scope................................................................................................ 9
4. Research Methodology:....................................................................................................... 9
5. Time.......................................................................................................................................... 9
6. Outline details..................................................................................................................... 10
1.1 Products and product development to satisfy customer needs.......................11
1.1.1 The product concept:............................................................................................................... 11
1.1.2 Products development to satisfy customer needs........................................................12
1.2.The bank cards and card services..............................................................................13
1.2.1. Bank card..................................................................................................................................... 13

2.3. Situation Analysis Services of bank card in BIDV Hanoi....................................44
2.3.1. Introduction................................................................................................................................ 44
2.3.2 Current status of issuing BIDV Hanoi................................................................................ 45
2.3.2.1. The cards issued by BIDV.................................................................................................. 45
2.3.2.3 BIDV’s VISA Card................................................................................................................... 46
2.3.2.4 Status of payment card operations................................................................................. 49
2.3.4 Analysis results of card business......................................................................................... 50
2.5. SWOT Analysis................................................................................................................. 55
2.6 Competitive Environment Analysis............................................................................60
2.7 Analysis of the level of customer satisfaction.........................................................62
Chapter III: CONCLUSIONS AND COMPREHENSIVE SOLUTION TO COMPLETE
BANK CARD SERVICES IN BIDV HANOI............................................................................. 65
3.1. Complete solution bank card services in BIDV Hanoi.........................................65
3.1.1. Finish card................................................................................................................................... 65
3.1.1.1. Development of new card products............................................................................... 66
3.1.1.2. Goals........................................................................................................................................... 67
3.1.1.3. Develop flexible pricing strategy.................................................................................... 68
3.1.2. Promote and expand distribution channels, relationships with partners.........69
3.1.3. Promote mix promotion........................................................................................................ 71
3.1.3.1. Advertising.............................................................................................................................. 71
3.1.3.2. Public Relations (PR)........................................................................................................... 71
3.2.3.3. Image Promotion, Sale........................................................................................................ 72
3.1.3.4. Personal Sales......................................................................................................................... 72
3.1.3.5. The other method................................................................................................................. 72
3.1.4. Human Resource Development.......................................................................................... 72
3.1.4.1. Recruitment and staffing appropriate..........................................................................73
3.1.4.2. Training to develop qualifications of staff...................................................................73
3.1.4.3. Wage policies, incentives................................................................................................... 74
3.1.5. Strengthening management and risk prevention........................................................74
3.1.6 Recommendations for BIDV.................................................................................................. 76

TMCP
ĐT&PT
BIDV HN
TTT
ATM
POS
NHTM
TCVN
IBMB
ACSI

Bank for Investment and Development of Vietnam, Hanoi
Branch
Card Center
Automated Teller Machine
Point Of Sale

Commercial Bank
Vietnamese standards
Internet banking, Mobi banking
American Customer Satisfaction Index


DANH MỤC CÁC BẢNG, BIỂU, SƠ ĐỒ


INTRODUCTION
1. Urgency of topics:

When Vietnam joined in the WTO, integrate with the world economy,


CHAPTER 1: THEORETİCAL BASİS
1.1 Products and product development to satisfy customer needs

1.1.1 The product concept:
In the process of human development due to labor and production
activities have to convert resources into useful products. All products are
produced to meet the specific needs of people. Thus, the main product is the
output or results of operations of human labor. According to ISO 9000, 2007
Product is defined as "the result of the activity or process." The process may be
producing activities alter physical and chemical properties of the material
increases its value or provide a service to meet the specific interests of the
people. All organizations, businesses, industries, sectors of the national
economy are creating or providing their products to society. According to this
view, the product is widely interpreted, not only is the material specific items
but also includes services.
Today a complete product is produced and circulated in the market has
two components which are the properties of hardware, software or a
combination of them
Hardware products include tangible physical attributes which expresses
in a concrete form, clearly reflects the different value, functionality, utility
engineering, economics of the product.
Software products are intangible factors including the types of services
that provide to clients and other factors such as information, concepts, and
related services...Nguyen Dinh Phan, Dang Ngoc Su 2012.


According to PHILIP Kotler: Products are everything that people can
sell in the market to pay attention, purchase, use or consumption, can satisfy a
desire or need.

Figure 1.American Customer Satisfaction Index – ACSI
Source: M.D Johnson et.al.Journal of Economic Psychology 22
(2011)217-245
In American Customer Satisfaction Index – ACSI, perceived value is
affected by perceived quality and customer expectations. Meanwhile, customer
expectations have a direct impact on the perceived quality. In fact, the higher the
expectations, maybe the quality standards of customer experience for the
product as high or vice versa. Therefore, requirements for product quality and
service provided to customers and the need to ensure are met on the basis of
their satisfaction. The satisfaction of customers is made on the basis of
perceived quality, expectations and perceived value, if the quality and perceived
value higher expectations will create loyalty with customers, otherwise, there
are no complaints or grievances about the products they consumer.
In this project, the author will analyze the criteria of customer
questionnaires on perceived quality, expectations and perceived value to lead to
customer satisfaction, analyzed by SPSS to provide results and analyze the
questions quantitatively.
Question of the professionals is qualitative to give solutions to improve
quality of service cards.
1.2. The bank cards and card services.

1.2.1. Bank card
1.2.1.1 The concept of bank cards:
Bank cards as a means of non-cash payments, was born from the
purchase method under retail and development associated with the application
of information technology in the banking sector. Bank cards are payment


instruments issued by bank card for customers to use payment for goods or
services within the cash balance or deposit your credit limit granted. Bank cards

There are many criteria to classify cards but mostly people use the 2
main methods: Classification according to production technology and classified
according to the nature of the payment card.
If based on the production technology divided into 3 types: embossed
card, magnetic card and smart cards:
Embossed Card: As the cards on the card surface relief necessary
information. Today this little card is used for rudimentary printing process,
prone to counterfeiting which combined with new technologies such as
magnetic stripe, smart card.
Magnetic Card: the card that the cardholder's information has been
embossed on the front of the card has been encoded in the magnetic tape on the
back of the card. This information must be correct and match.
Smart card: This is the latest generation of card having security features
and high safety, based on the technical computing processor, mounted on an
electronic chip card made as a perfect computer. Usually a smart card electronic
chip attached to replace the magnetic stripe of the card. It is also the case with


the smart card chip and electronic tape. The issuance and acceptance of payment
cards only prevalent in developed countries despite international card
organizations still encourage member banks to issue payment cards and to
reduce the risks of counterfeit rate face card.
If based on the nature of the payment can be classify into Credit card
Debit card
Credit card: the method of non-cash payment provides the ability to use
pre-paid expenses later. Banks and financial institutions issuing credit cards to
customers based on the reputation and ability to ensure that each customer pays.
The ability to ensure payments are determined based on criteria such as income,
expenditure status, prestige, availability relationship with financial institutions,
mortgage... clients. When using the card, instead of cash, cardholders present

cards. For international card issuance, card-issuing bank must register and be
accepted as a member of international card organizations, adhere to the
regulations in the issuance and payment cards by international organizations
that issue. There are 2 types of international card and debit card International
credit card.
1.2.1.4 The process of development of bank card.
To have products as diverse as today, the bank card sector has gone
through several stages and test development. However, in terms of time, trading
card industry is a relatively new business, the birth and development began in
the early twentieth century until today.


Bank cards are formed in the U.S. from customers buying habits have all
of the retailers on the basis of prestige customers to shop.
In the 1914, Western Union, money transfer organization of U.S the first
time provide his customer special deferred payment services. The company
released the plate containing the information embossed perform two functions:
- Identify and differentiate customers
- Provide and update customer data, including account information and
perform transactions.
Other organizations also recognize the value of this kind of service
above and within a short time then a lot of units, such as railway stations, hotels
and stores throughout the United States has chosen provider deferred service for
its customers. Among them, the American Petroleum Corporation launched the
first gas card in 1924 to allow people to use the card to buy gasoline in stores
nationwide.
Following organizations provide goods and services. The bank entered
the market quickly with a goal card soon after this payment form on the basis of
existing relationships between entities providing goods services across the
country with extensive dealer network of banks. In 1950, Diners Club issued the

been reflected in the development of science and technology and civilized
society. Acquisition and application of the achievements of science and
technology, especially information technology, card systems is more complete
developed. This is a significant success for a new business just a few decades
formation and development.


1.2.1.5 The components involved business cards
The issuance and use of payment cards and domestic bank participation
tight 4 basic components: the card-issuing bank, the bank card payment, card
holders and card-accepting units (CAU). For international card adds a further
component is the international card organizations. Each subject plays an
important role in various maximize liquidity features modern cashless bank
card.
- International Card Organization is the head of all operations and
management of payment cards in our network. This is an association of
financial institutions, large credit -wide network and reach the famous brand
and diversified products such as card organizations Visa, MasterCard card
issuers, card companies American Express, JCB card companies, card company
Diners Club, Mondex company.... International card organizations offer basic
provisions regarding issuance and use of payment cards, play a mediating role
between the organization and the member companies of the adjustment and the
balance amount payments between member companies.
- The issuing bank is issuing banks themselves own branded card or
international card organizations, empowered card companies issue cards
branded by organizations and companies. The issuing bank is the bank named
on the card issued by the bank to show that its product. Issuing Bank specified
terms and conditions of use for the customer card. The Bank has the right to
contract with a third party agent is a bank or a financial institution for credit and
payment card issuing credit. If the name of the agent banks appear on the

Second, the role of the card to the credit of the bank: With the form of
credit card, the bank can make loans on certain credit limit, allowing the


cardholder spending limit. Thus the form of credit card issuers, banks expanded
lending activities, particularly consumer loans. These activities and investment
credit safe, fast and effective because the loan is based on reputation or financial
viability of the high cards.
On the other hand to release the customer card you can enter an amount,
or passbook, debentures, bonds usually greater than or equal to limit credit card.
With economic - social:
First, the bank card payment helps mobilize idle capital in the
population, which meet the needs of the economy: Payment by bank card to
facilitate capital raising activities of banks with cheap, this additional capital
banks can use to invest in service business. For example, if a card account has 3
million vnd and we have 3.5 million cards issued, the Bank has mobilized
10,500 billion).
Second, the bank card help payment activities to become safe, fast and
save time: The card has facilitated the payment for goods and services safely
and effectively, accurate, reliable and time -saving, thereby creating public
confidence in the operation of the banking system. Besides, it does not take
money from the shipping cost place to the other to make the payment and
reduce the negative social vices.
Third, to contribute effectively implement national monetary policy:
bank card activity enhances circulation of money in the economy, increase the
rotation of the coin, unfreeze the different flows, creating important condition
for controlling the volume of payment transactions both residential and
economy, thereby paving the way for the calculation of the money supply and
the implementation of monetary policy to be effective....
For customers using cards (also known as card holder):

1.2.2 Services, Utility of bank cards.
1.2.2.1 ATM Cards, Debit Card
Recharge: cardholders can load cash directly to your account at the
bank, charging at ATMs, transfer from another bank...
Withdrawal: through the ATM system, the point of money application
Money Transfer: through accounts at any bank, payment of business
transactions, the service bills (electricity, water, telephone...).
Get transfers: from domestic and foreign banks, received salary and
bonus...
Currently most of the cards in the market has put in a number of
extensions as follows: Payment of goods - services: in stores, trade centers,
supermarkets, bookstores, restaurants - Hotels..., direct payment or auto
payment for service such as water, telephone, Internet fee,...; Buying prepaid
cards, payment directly throuht ATM...
With modern technology applied will have more convenience in the
payment card. The trend in the future, the card will become more versatile and
become the only thing to manage all transactions and banking services
1.2.2.2. The VISA credit
Using simple, time-saving, easy shopping anytime, anywhere: With the
card in the compact and simple operation, credit cards BIDV traded tens of
millions of ATM / POS, website with VISA logo is worldwide. Customers can
use the card to go shopping, travel, pay at the supermarket, shops, restaurants,


commercial centers, hotels, resorts... or to place an order online through the
Internet.
High security, maximum risk prevention fake cards: BIDV Precious,
Flexi is one of the most secure credit card nowadays cause it is integrated
magnetic stripe technology and EMV Chip cards (Standard payment smart cards
of 3 the world's largest Alliances are Europay, MasterCard and Visa offer). The