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

TRỊNH VIỆT HOÀ

IMPROVING THE RETAIL BANKING SERVICES
IN BANK FOR INVESTMENT AND DEVELOPMENT
OF VIET NAM – THAI HA BRANCH

PHÁT TRIỂN DỊCH VỤ NGÂN HÀNG BÁN LẺ
TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN
VIỆT NAM – CHI NHÁNH THÁI HÀ

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

Hà Nội - 2017


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

TRỊNH VIỆT HOÀ

IMPROVING THE RETAIL BANKING SERVICES
IN BANK FOR INVESTMENT AND DEVELOPMENT
OF VIET NAM – THAI HA BRANCH

PHÁT TRIỂN DỊCH VỤ NGÂN HÀNG BÁN LẺ
TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN

To finish the dissertation "Improving the retail banking services in Bank for
Investment and Development of Vietnam - Thai Ha Branch ", I would like to thank
all the teachers for teaching and helping. I studied in Viet Nam National University,
Ha Noi School of Business and Management.
I would like to express my sincere thanks to the dedicated help of instructor
Dr. Nguyen Thi Kim Oanh, Board of Directors of Deposit Insurance Viet nam – Ha
noi Branch.
I would like to thank my friends, colleagues, relatives and family who have
always been with me, encouraged and helped me during my study and research.
Although we have tried our best to study the topic, due to limited time,
knowledge and practical experience is still limited, so I can not avoid the lack of
research, I hope to receive the comments of teachers, friends, colleagues to
complete the thesis.
I sincerely thank!

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TABLE OF CONTENT
DECLARATION ON HONOUR ................................................................................i
ACKNOWLEDGMENT ............................................................................................ ii
OVERVIEW ..............................................................................................................ix
TABLE OF CONTENT ............................................................................................ iii
ABBREVIATIONS....................................................................................................vi
LIST OF FIGURES.................................................................................................. vii
LIST OF TABLES .................................................................................................. viii
CHAPTER 1: INTRODUCTION TO THESIS ..........................................................1
1.1. The urgency of the thesis .................................................................................1
1.2 Purpose of thesis ...............................................................................................2
1.3 Subjects and scopes of study ............................................................................2

3.1.4. Research models .....................................................................................37
3.2. Develop questionnaire ...................................................................................38
CHAPTER 4. SITUATION OF IMPROVING RETAIL BANKING SERVICE IN
BIDV – THAI HA BRANCH ...................................................................................40
4.1. Overview of business activities of BIDV Thai Ha branch ...........................41
4.1.1. The process of formation and development ...........................................41
4.1.2. Organizational model .............................................................................41
4.1.3 Evaluating results of business activities of BIDV, Thai Ha branch ........42
4.2. The status of retail banking services of BIDV - Thai Ha Branch..................45
4.2.1 The status of retail banking services and retail banking services turnover
at BIDV Thai Ha branch...................................................................................46
4.2.2 Current price / charge situation in capital mobilization, lending and retail
services .............................................................................................................58
4.2.3. Current status of facilities and equipment for RETAIL BANKING
activities ............................................................................................................59
4.2.4. Current status of human resources for RETAIL BANKING activities .60
4.2.5 The current state of information technology infrastructure for retail banking61
4.3 Achievements and limitations of retail banking service of BIDV – Thai Ha
branch ....................................................................................................................63
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4.3.1 Achievements ..........................................................................................63
4.3.2 Limitations ...............................................................................................64
4.4. Reason ............................................................................................................66
4.4.1. Subjective reasons ..................................................................................66
4.4.2. Objective reasons....................................................................................69
Conclusion Chapter 4 ................................................................................................71
CHAPTER 5: SOLUTIONS TO IMPROVE RETAIL BANKING SERVICES IN
BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM, THAI HA


Information Technology

IFRS

International Financial Reporting Standards

VAMC

Vietnamese Asset Management Company

VAS

Vietnamese Accounting Standards

WTO

World Trade Organization

vi


LIST OF FIGURES

Figure 3.1. The quantitative research process (Author, 2017) ..................................35
Figure 3.2. Research framework ...............................................................................37
Figure 4.1. Organization structure framework of BIDV – Thai Ha branch ..............42
Figure 4.2. Service package of BIDV Thai Ha .........................................................46
Figure 4.3. BIDV's capital mobilization situation, Thai Ha branch from 2015 to 2016 .....47
Figure 4.4. Situation of BIDV's term deposit mobilization, Thai Ha branch from

OVERVIEW

Studying the challenges facing Vietnam's banking and finance industry, experts
have concluded that one of the two challenges facing the banking industry is the fierce
competition in service quality. In addition, in the development strategy of Vietnamese
banks in the coming years, the diversification of products and services and the
improvement of quality of products and services is a vital issue, in parallel with the
provision of credit to the economy. The Bank will survive and develop sustainably.
Vietnam Commercial Joint Stock Bank for Investment and Development
(BIDV) is a commercial bank established in 1957 in the form of a state commercial
bank, and since April 2016 BIDV officially became a joint stock commercial bank.
The state holds 95% of the shares with a dense network and a large market. In fact,
from its inception to 2000, BIDV has been mainly serving capital construction
projects and projects in the economy, but from 2000-2016, BIDV entered the
integration period, in parallel with the credit growth. BIDV has also actively shifted
its customer structure to reduce the proportion of outstanding loans and develop
credit service products. However, BIDV is too focused on developing credit and
investment, while investment in modern banking products and services accounts for
a modest share.
BIDV, Thai Ha branch was established in May 2015 with the traditional
activities of credit, capital mobilization and services. In the business strategy of the
past 3 years, BIDV's goal is to become a leading bank providing banking products
and services in Vietnam. and will constantly improve the quality of products,
develop banking services. Based on the above reasons, the authors selected the
topic: "Improving the Retail banking services in Bank for Investment and
Development of Viet Nam - Thai Ha Branch" to increase income from banking
services and enhancing competitiveness and reducing risks for Thai Ha Branch and
contributing positively to the joint venture business as well as contributing to the
state budget and creating jobs for local laborers.


traditional products to corporate clients, the Bank for Investment and Development
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of Vietnam There are strong directions in the development path that retail banking
products are considered as a long-term business strategy and conditions for
sustainable development in their operations.
However, the development of retail banking products at BIDV has not changed
dramatically; the retail banking products and services have not yet reached the
customers, and the retail market share is not high in business activities. Together
with the trend of BIDV, Thai Ha branch - new branch in BIDV system, with the
former branch of Mekong Delta Bank House (MHB Ha Tay) was merged into
BIDV in May 2015 Government policy.
Since its founding, Thai Ha has focused on retail development. However,
new retail banking activities are still inadequate. Therefore, the improvement of
synchronous and creative solutions to develop the retail banking products at the
branch will contribute to fulfilling BIDV's goal.
Based on the above reasons, with the desire to find out solutions in a
consistent, effective and practical way to develop retail activities of BIDV - Thai Ha
Branch, I chose the problem: Retail banking at the Bank for Investment and
Development of Vietnam - Thai Ha Branch as the thesis topic.
1.2 Purpose of thesis
Studying and researching the basic theoretical issues of development of retail
banking activities of Vietnamese commercial banks.
Reflects and assesses the development of retail banking activities of BIDV
Thai Ha branch including analyzes the shortcomings, constraints and causes
affecting the development of retail banking activities of the branch.
Suggest some solutions to help BIDV Thai Ha branch in particular and
commercial banks in general to promote banking services at BIDV Thai Ha branch
to bring efficiency to the branch, reduce risks, contribute enhancing competitiveness

BIDV Thai Ha branch to offer solutions with high performance. Based on this fact,
BIDV Thai Ha branch can be applied in practical activities as well as adding
theoretical basis in research activities in the unit.
During the study of this topic, the author has some advantages and
difficulties encountered are:
Advantages: The author is an experienced banker working for a long time in
a large commercial bank and very enthusiastic about the development of banking
operations. At the same time, the research unit is BIDV - Thai Ha Branch is the
leading unit in implementing the strategy and the new banking products are in the
period of strong transformation into retail banking. Thus, the author has a
comprehensive understanding of the retail banking 's activities, as well as about
bank's activities in general, from which there are close research and practical
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difficulties and difficult to find. From there, there is a practical solution for BIDV Thai Ha Branch.
Difficulty: In essence, the commercial operation of commercial banks has
existed since the commercial banks started operation, however, due to history, the
traditional activities of commercial banks in general and BIDV - Thai Ha branch is
to provide banking products and services mainly to economic organizations with
credit services account for a large proportion. Until recently, in line with the trend
of the world, Vietnamese banks have been perfecting the organizational
restructuring and development of moving towards moving towards retail customers.
In addition, the data reported by banks that are still consolidated are still carried out
according to the service segment and not really according to the beneficiaries, so
collecting data reflects retail performance is quite difficult. The detailed and
uniform reporting system on retail activities is incomplete and incomplete, so the
exploitation of data and comparison is difficult.
1.5 Structure of the thesis
Thesis title: " Improving the Retail banking services in Bank for Investment

While retail banking activities are activities that cover many segments of
services that serve the same target group as the individual and the household,
previous studies focused largely on each of the service segments such as capital
mobilization, use of funds, card services, or marketing in general. From 2004 to
now, there have been no overview studies on the retail operation of the commercial
bank as well as BIDV.
Research in abroad
Korda and Boris Snoj (2010) studied the quality of retail banking services
with customer satisfaction. This research has developed Gronroos' (1984) study to
show that customer satisfaction in retail banking is only satisfactory in terms of
technical quality (what customers receive from retail banking such as safety, etc.)
and functional quality (how does retail banking work?).
Research on retail banking has also attracted research into retail banking
support tools; which mentions to the Internet and the mobiphone. Research by Pham
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Long (2010) and research by Carlotta Mariotto and Marianne Verdier (2012) on
competition in Internet Banking and Mobile Banking has emphasized that in order
to satisfy the needs of customers, banks need paying special attention to the
development of Internet banking and mobile banking. In this study, the authors also
illustrat the role of Internet banking and mobile banking by comparing some banks
in Denmark, Sweden and Finland.
Therefore, it can be defined that, this research is independent study, and the
research topic is not duplicated with the previous published works. In this thesis, the
author has studied a general overview of retail services of commercial banks that is
the history of development, concepts and characteristics, the role of retail activities,
retail banking, distribution channels, common risks in retail services of commercial
banks; viewpoints on the improvement of retail activity, criteria for assessing the
development of retail activity, factors affecting retail services of commercial banks.

2.2.2. The Concept of Retail Banking Services
The retail market is a completely new view of financial markets. There are
now many ways to understand retail banking - "retail banking" in a variety of
approaches. Literally in the supply of normal goods and services, retail is sold
directly to the end consumer. It is the opposite of wholesale that is sold to
intermediaries, to the supplier of the goods. However, due to the peculiarities of the
banking industry, the term retail can be understood slightly differently.
Currently, there are two different perspectives on retail customers. According
to the World Trade Organization, "retail banking is a typical service of a bank,
where individual customers can trade at branches of a bank. To make transactions
such as savings deposit, checking account, mortgage loan, credit card service, debit
card and some other services. Thus, in this view, retail customer consists only of
individuals and households.
In addition, there is also the view that retail customer is not just individuals
and households but also small and medium enterprises. In his modern Banking
career, David Cox said: "retail banking is a major banking service providing
banking products directly to businesses, households and individuals and small
credits. " According to experts from the Asian Institute of Technology, "retail
banking is the bank that provides products and services to individuals, small and

8


medium enterprises through the branch network, or customers can directly access
the banking products through information and communication electronics. "
Thus, we can understand retail banking in a more common ways retail
banking is a service covering all aspects of commercial banks such as credit,
deposit, card services... Servers are individual customers, households, small and
medium enterprises, through the branch network or the media, telecommunication
electronics...

the bank (Earn & Young, 2016).
2.2.3.3 Production catalog (Portfolio list)
Derived from the needs of customers, banks have developed and changed
incessantly to offer a variety of products and services ranging from traditional
services to new and modern services to satisfy their own requirements. A wide
range of products and services belonging to groups of services receiving deposits,
loans, payments, electronic banking, trust investment, guarantee, preserve
valuables, purchase and sell foreign currency are constantly developed. In
developed countries, the number of bank products and services for individual
customers reaches thousands in order to serve the diverse needs of customers.
2.2.3.4 Distribution channels
The bank's retail operation is heavily dependent on their multi-channel
distribution network. Nowadays, customers can access bank's products and services
through many channels such as branch, transaction office, ATM, Internet, Phone,
Kios, POS... The multi-channel distribution in retail activities increasingly brings
convenience to the KH, while also saving costs for banks and all social security.
2.2.3.5 Information technology
Information technology (IT) plays an important role in the development of
retail products, especially advanced products and services, which is an important
premise for centralized storage and processing. The bulk of the retail banking
service is crowded and dispersed, sensitive to the way the bank distributes it.
Therefore, if there is no development of IT, banks cannot access and provide
products and services to all customers, especially customers in areas where the
bank has no capability to open a brand, or customers wishing to trade outside of
office hours.

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2.2.3.6. Risk


(customers have long-term needs to enjoy high interest rates, expect to receive
periodic interest to meet the demand for living) Flexible withdrawal of funds
(meeting the flexible capital requirements of the plan without affecting interest or
impact), bonus (prizes will be rewarded).
Residential savings deposits include demand deposits, term deposits,
issuance of valuable certificates of deposits, promissory notes, bank bonds...
b. Deposit payment
The activity of receiving deposits to pay for cheap capital and more serves
the needs of payment and payment of the population. When opening a payment
deposit account at a bank, the customer can pay in and withdraw at any time, using
the money in the account to pay regularly or periodically payment needs, so the
longer called demand deposits.
With this activity, the bank not only attracts cheap capital through which the
banks sell other products and services such as overdraft account, card issuance, ebanking services... Therefore, for banks, this attraction is very important.
Often in developed countries, commercial banks do not pay interest on
deposits for payment purposes, whereas banks often charge fees for services such as
account maintenance fees, fees for using services and payment instruments.
Payment account allows the account holder to use for many purposes:
Receiving salary, other income, receiving remittance from abroad, paying for
goods, services, banking statements, interest payments... Account holders can
withdraw cash, issue checks, cards, transfer payments, issue automatic orders, or
conduct e-banking transactions from accounts present. The average balance on the
deposits is not high, but the number of customers is very large so banks can
mobilize a large amount of capital through this activity.
Characteristics:
The number of clients is very large, but the ability to mobilize capital is
concentrated in many cities, urban areas, some customers have economic potential.

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commercial banks in general and personal plans in particular. Today's payment
services are provided to consumers through direct and indirect distribution channels
13


based on modern technical infrastructure and processing technology. With this
progress, customer increasingly receives payment services are safe, accurate and
high utility, not only in the country but also on a global scale.
The more developed economics is, the more demand for payment for goods and
services, the domestic payment activities of commercial banks meet the demand for the
plan in general and population in particular. Plans can use this service to pay for goods,
services, securities trading, and donation to relatives or use automatic money transfer
services, automatic investment to profit. Customers can transfer money in foreign
currency or currencies (according to foreign exchange regulations of each country from
different sources such as payment deposit, loan, cash... and in the forms such as checks,
authorized collection, authorizing payment or money order.
Today, in the trend of international integration, countries have loosened their
current transactions, individuals are transferred abroad to pay for authorized
purposes easily. For example, in Vietnam, individuals who are Vietnamese citizens
can transfer money abroad for study, medical treatment, travel, inheritance,
expenses and fees. Legally immigration money transferring.
Characteristic
According to Vietnamese Banking Association (2016), the cost of paying
customers is very low, usually from 0% to 0.03% of the amount paid. Although the value
of each payment is usually low, but the total value of payment through bank is very large
and continuous. And the risk in providing payment services to banks is relatively low.
2.2.4.4 Card services
Bank cards are payment instruments issued by banks and issued to payment
service users for use under contracts signed between banks and customers.
Accordingly, customers can use the card to pay for goods and services at the card