Luận văn thạc sĩ UEB improving the quality of card services at bank for investment and development

ĐẠI HỌC QUỐC GIA HÀ NỘI

KHOA QUẢN TRỊ VÀ KINH DOANH

---------------------

CAO LAN ANH

IMPROVING THE QUALITY OF CARD SERVICES AT BANK FOR

INVESTMENT AND DEVELOPMENT OF VIETNAM –

SOGIAODICH 1 BRANCH

NÂNG CAO CHẤT LƢỢNG DỊCH VỤ THẺ TẠI NH TMCP ĐẦU

TƢ VÀ PHÁT TRIỂN VIỆT NAM – CHI NHÁNH SỞ GIAO DỊCH 1

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

Hà Nội - 2017

ĐẠI HỌC QUỐC GIA HÀ NỘI

KHOA QUẢN TRỊ VÀ KINH DOANH

---------------------

CAO LAN ANH

IMPROVING THE QUALITY OF CARD SERVICES AT BANK FOR

INVESTMENT AND DEVELOPMENT OF VIETNAM –

SOGIAODICH 1 BRANCH

NÂNG CAO CHẤT LƢỢNG DỊCH VỤ THẺ TẠI NH TMCP ĐẦU

TƢ VÀ PHÁT TRIỂN VIỆT NAM – CHI NHÁNH SỞ GIAO DỊCH 1

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƢỜI HƢỚNG DẪN KHOA HỌC: TS. PHẠM THỊ THANH HÒA

Hà Nội - 2017

LỜI CẢM ƠN

Tôi xin bày tỏ lòng biết ơn sâu sắc đến các thầy cô giáo Khoa Quản trị và Kinh

doanh, Trường Đ ại học Quốc Gia Hà Nội, đặc biệt là các thầy cô đ ã truyền đ ạt cho tôi

nhiều kiến thức và đ ã tạo điều kiện giúp tôi thực hiện bản luận văn này.

Tôi xin bày tỏ lòng biết ơn chân thành đến TS. Phạm Thị Thanh Hòa đã dành nhiều thời

gian tâm huyết, tận tình hướng dẫn, chỉ bảo cho tôi trong suốt quá trình thực hiện đề tài.

Tôi xin chân thành cảm ơn Ban lãnh đ ạo Ngân hàng Thương Mại Cổ Phần Đầu Tư

và Phát Triển Việt Nam chi nhánh Sở Giao Dịch 1 và các anh chị em ở các phòng nghiệp

vụ của chi nhánh và phòng giao dịch đã tạo điều kiện thuận lợi, giúp đỡ tôi trong việc thu

thập số liệu và những thông tin cần thiết cho việc nghiên cứu luận văn này.

Tôi xin chân thành cảm ơn gia đình, bạn bè và đồng nghiệp đã đ ộng viên khích lệ và

giúp đỡ tôi trong quá trình học tập và nghiên cứu.

ACKNOWLEDGEMENT

I would like to express my deep gratitude to the teachers of the Hanoi school of

Business and Management, Vietnam National University, especially the teachers who

imparted to me a lot of knowledge and helped me. Carry out this essay.

I would like to express sincere gratitude to TS. Pham Thi Thanh Hoa has spent a lot

of time, dedicated guidance, only told me during the course of the topic.

I would like to express my sincere thanks to the Board of Directors of Joint Stock

Commercial Bank for Investment and Development of Vietnam – Sogiaodich 1 Branch and

for the siblings in the professional sections of branches and transaction offices who created

favorable conditions. Help me in collecting data and information needed for the study of

this thesis.

I sincerely thank family, friends and colleagues for encouraging and supporting me

in the process of study and research.

Hanoi, date 25 month 5 year

2017

Student

CAO LAN ANH

TABLE OF CONTENTS

ABBREVIATION.....................................................................................................................i

LIST OF FIGURES.................................................................................................................ii

LIST OF TABLES..................................................................................................................iii

INTRODUCTION...................................................................................................................1

CHAPTER 1: OVERVIEW OF CARD SERVICES AND QUALITY OF CARD

SERVICES OF COMMERCIAL BANKS...........................................................................5

1.1 Overview of card services at commercial banks......................................................5

1.1.1 Definition and characteristics of card services of commercial banks..............5

1.1.2 The role and benefits of card services of commercial banks............................6

1.1.3 Main activities of card services at commercial banks......................................7

1.2 Quality of card services at commercial banks........................................................10

1.2.1 Definition of card service quality....................................................................10

1.2.2 The necessity of improving card operations of commercial banks.................10

1.2.3 Evaluation models of card service quality at commercial banks....................11

1.3. Experience in enhancing the quality of card services at some banks and lessons

drawn for BIDV - Sogiaodich 1 Branch.........................................................................16

1.3.1. Experience of foreign banks...........................................................................16

1.3.2 Experience of domestic commercial banks.....................................................18

1.3.3. Experience lessons drawn for BIDV – Sogiaodich 1 Branch........................19

CHAPTER 2: REALITY OF CARD SERVICE QUALITY AT BIDV –......................21

SOGIAODICH 1 BRANCH.................................................................................................21

2.1 Introduction of BIDV – Sogiaodich 1 Branch........................................................21

2.1.1 Foundation and development history..............................................................21

2.1.2 Operating model of BIDV – Sogiaodich 1 Branch.........................................22

2.1.3 Business results...............................................................................................22

2.2 Reality of the card service quality at BIDV – Sogiaodich 1 Branch in recent

years....................................................................................................................................24

2.2.1 Results of card business..................................................................................24

2.2.2 Reality of card service quality at the branch in recent years..........................31

2.2.3 Reality of card service quality at BIDV – Sogiaodich 1 Branch.....................36

2.3 Evaluation of the quality of card services at BIDV – Sogiaodich 1 Branch.......50

2.3.1 Achievements .................................................................................................. 50

2.3.2 Limitations and causes....................................................................................51

CHAPTER 3: SOLUTIONS TO IMPROVE THE QUALITY OF CARD SERVICES

AT BIDV – SOGIAODICH 1 BRANCH............................................................................54

3.1 Developing orientations of card operations at the bank.......................................54

3.2 Solutions to improve the quality of card services at BIDV Bank – Sogiaodich 1

Branch................................................................................................................................55

3.2.1 Investing solutions to improve facilities and demand meeting ability............55

3.2.2 Solutions to improve service deployment outcome.........................................57

3.2.3 Solutions to complete the service providing process......................................59

3.2.4 Solutions to complete the management operation..........................................60

3.2.5 Solutions to strengthen the brand image of the branch..................................62

3.2.6 Solutions to enhance responsibility with society and community...................63

3.3 Reccomendations........................................................................................................63

3.3.1 Reccomendations to the State Bank................................................................63

3.3.2 Recommendations to BIDV Head Office.........................................................64

3.4.3 Recommendations to the association of card issuing and payment banks.....66

CONCLUSIONS, LIMITATIONS, AND CONTRIBUTIONS OF THE STUDY........67

REFERENCES.......................................................................................................................69

APPENDIX

Abbreviation

ACB

ATM

BIDV

CVV

EDC

PIN

POS

i

LIST OF FIGURES

Figure 1.1: Research model of Parasuraman et al. (1988)...................................................11

Figure 1.2: Research model of Thai Van Vinh và Devinder Grewal (2007)........................12

Figure 1.3: Research model of Huynh Thuy Phuong (2010)...............................................13

Figure 1.4: Research model of Nguyen Thi Kieu Linh (2009)............................................14

Figure 1.5: Research model of Lê Thị Thu Hương (2014)..................................................15

Figure 1.6: Proposed research model...................................................................................16

ii

LIST OF TABLES

Table 2.1: Business results of the branch in the stage of 2013 -2015..................................22

Table 2.2: Results of card service business..........................................................................24

Table 2.3: Number of ATM cards at the branch...................................................................26

Table 2.4: Revenue from card services................................................................................28

Table 2.5: Number of international payment cards at the branch........................................29

Table 2.6: Revenue from international payment card services............................................30

Table 2.7: Some training activities of card staff at the branch.............................................32

Table 2.8: Some advetising and marketing activities for card products..............................33

Table 2.9: Distribution system and management technology of card service business.......34

Table 2.10: Common risks in card service business at the branch.......................................35

Table 2.11 Results of the scale reliability testing.................................................................37

Table 2.12 Results of independent factor analysis...............................................................39

Table 2.13 Rotated component matrix of independent variables.........................................40

Table 2.14 Results of dependent factor analysis..................................................................41

Table 2.15 Rotated component matrix of dependent variables............................................42

Table 2.16 Multiple regression analysis...............................................................................42

Table 2.17 Regression coefficients......................................................................................43

Table 2.18 Evaluation of resources......................................................................................44

Table 2.19 Evaluation of outcome.......................................................................................45

Table 2.20 Evaluation of process.........................................................................................46

Table 2.21 Evaluation of management.................................................................................47

Table 2.22 Evaluation of image...........................................................................................48

Table 2.23 Evaluation of social responsibility.....................................................................49

Table 2.24 Evaluation of the quality of card services..........................................................50

iii

INTRODUCTION

1. Rationale of the study

Nowadays, the increasing development of science and technology contributes

considerably to the improvement of people’s life quality. People are more and more

accessible to safer and more sophisticated service products. Banking service products are

one of the breakthroughs on the basis of modern science and technology. One of those

service products is bank cards. Customers using cards can conveniently carry out many

transactions such as payment, transfer, cash withdrawal, internet payment, etc. without

having to go to the bank. As a result, card products are becoming friendlier, closer, and

being widely accepted by consumers. As for the banks, card products also bring them a lot

of intangible benefits such as raising the banks’ position, promoting their brand image, and

attracting customers to the banks. These are also business activities bringing revenue to the

banks. These are the annual fees that cardholders must pay under the card use contract;

cash withdrawal fee (4% for issuing bank and at least 50,000 VND for one transaction);

fees for payment transaction of goods and services by credit card at card accepting units

(2.5% of the value of each transaction, commercial discount (for agent banks that help

conduct payment transaction for issuing banks); some other fees such as credit card penalty

fee, checking fee (fee that cardholders pay for their checking requirements), fee for card re￾issuance (due to theft or loss) and card exchange (as requested by cardholders), fee for

posting stolen or lost cards to the list of forbidden circulation.

With the advantages that card services bring, each bank has built its own strategies to

dominate the market and develop its card service brand. The competition in developing

card services of commercial banks nowadays has made customers’ demands more and

more satisfied and made the card service market become more active than ever. Therefore,

the improvement of card service quality is very important and necessary for commercial

banks.

In the past few years, BIDV – Sogiaodich 1 Branch has implemented a lot of measures

to improve the quality of card services. However, the card services of BIDV still have

several shortcomings. For example, many customers apply for a card issuance but do not

get the cards, causing the cost wastage for the bank. The problem of overdue credit card

debt is arising. Besides, the habit of using cash has existed in Vietnamese people’s minds

for a long time. Therefore, the aim of Sogiaodich 1 Branch is to improve the quality of

card services in order to expand the card product market and better control risks in card

business. For this reason, the author selected the topic "Improving the quality of card

1

services at Bank for Investment and Development of Vietnam – Sogiaodich 1 Branch " as

my MA thesis.

2. Overview of the study

The quality of card services is one of the factors affecting card service business, which

brings a lot of revenue to current commercial banks. Thus, there are lots of studies related

to the operation as well as the quality of card services. Some related studies are presented

as follows.

Le Thi Thu Ha (2015) conducted a study on the management of card business at Joint

Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Hai Duong branch.

The study focused on the contents related to card business management including

management planning, implementation of management plans, and inspection and

supervision of the management plan implementation. Moreover, the study also focused on

clarifying risks in card business and causes of the risks in card business at Vietcombank –

Hai Duong branch. Nevertheless, the study did not present the issues related to the quality

of card services, which is a prerequisite for achieving the goal of expanding and

developing card services in a potential market like Hai Duong.

The study of Dinh Nguyen Hoai Phuong (2011) aimed at exploring the solutions for

card service development at Asia Commercial Bank (ACB). The research focused on

analyzing the reality of card service development and measuring the satisfaction of

employees and customers on the card product development at Asia Commercial Bank.

Despite the fact that the expansion and development of card services are always

accompanied by potential risks, the author did not focus on presenting the risks of the bank

in card business to have a right developing orientation and a risk forecasting ability.

Therefore, the solutions that the author proposed were still general and quite unreasonable

in the card business environment with a lot of potential risks.

Bui Thi Thanh Huong (2013) carried out a study on card product development at Vietnam

Bank for Agriculture and Rural Development (Agribank). In her study, the author concentrated

on analyzing the reality of card service developing solutions that were applied by Agribank

such as marketing solutions, technology solutions, affiliating solutions, card risk management

solutions, human solutions, and cost solutions. However, the analysis of the solution groups

was only based on the collection and analysis of secondary data from the card business of

Agribank in the author’s point of view. The collection of customer opinions through surveys

wasn’t conducted, which decreased the objectivity of the thesis.

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