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153 The role of marketing activities to bankcard and actual state of Ngân hàng nông nghiệp và phát triển nông thôn (AgriBank) cards
1 CHAPTER ONE: OVERVIEW OF BANKCARD 1.1 General introduction about bankcard 1.1.1 History of bankcard Bankcard history began when individual retail merchants extended credit to their customers, allowing them to charge purchases to an account held by the merchant In 1730, Christopher Thompson, a furniture merchant, created the first advertisement for credit by offering furniture that could be paid off weekly However, 1950 marked the real beginning of the credit card most of us are familiar with today Diner’s Club, Inc introduced the first credit card that could be used at a variety of stores and businesses Advantages of this card immediately took notice of many people In 1960, Bank of American introduced its own bankcard, the BankAmericard In 1966, fourteen United States banks formed Interbank, a new association with the ability to exchange information on credit card transactions The following year, 1967, four California banks changed their named from the California Bankcard Association to the Western States Bankcard Association (WSBA) The new WSBA licensed Interbank to use the MasterCharge name and logo In the late 1960s, numerous financial institutions became MasterCharge (Interbank) members to compete with BankAmericard Eventually, financial institutions interested in issuing cards in the U.S became members of either BankAmericard or MasterCharge In 1977, BankAmericard became Visa USA/ Visa International In 1979, MasterCharge changed its name to MasterCard to reflect its expanded services At the present time, the leaders in the bankcard systems are Visa, Master Card, Amex and JCB Payment by bankcard quickly become popularity in other countries In 1960, the first plastic card was used in Japan marked the beginning of bankcard in Asia The first plastic card of Barcaly Bank issued in 1966 also highlighted a new period of development of bankcard in Europe In Vietnam, the first card was accepted in 1990 It was the starting point for card’s products and services in Vietnam Nowadays, bankcard presents all over the world in diversified forms which meet every demand of cardholders Banks and financial institutions always try to improve bankcard to reach a friendly and convenient payment method for customers 1.1.2 Concept and classification Everyday millions of people all around the globe are using bankcards for making credit card payments for their purchases However, the fact that not every cardholders know concept of a bankcard * Concept: In simple terms: A bankcard can be described as a plastic card issued by a bank or a financial institution, using which, the cardholder can gain access to the financial resources of the bank as a line of credit * Classification: There are many types of cards that can be used as alternative forms of payment Financial institutions issue some and banks issues others Many allow the balance to be paid in full each month Some take the payment directly from the cardholder’s bank account while others require that the cardholder send payment to the issuer Herein, I list some popular ways to divide bankcards Figure - Types of bankcards Cards Payment method Technical Feature Issuer Area of Using card International card Domestic card Travel and Entertainment cards Bankcards Smart card Magnetic stripe card Cash card Credit card Debit card Source: Developed for the report * Payment method: - Debit card: A plastic card used to initiate a debit transaction In general, these transactions are used primarily to purchase goods and services and to obtain cash, for which the cardholder's asset account is debited by the issuer Debit card consist two basic types: + On-line debit card: An online-debit card deducts funds from the bank account immediately, as soon as the card is used There is no delay for processing the transaction + Off-line debit card: An off-line debit card does not deduct funds from the checking account immediately Transactions are processed like a regular credit card and the funds are not deducted for 24-72 hours Most issuers of debit cards are moving to this type of card rather than on-line debit card - Credit card: A plastic card bearing an account number assigned to a cardholder with a credit limit that can be used to purchase goods and services and to obtain cash disbursements on credit, for which a cardholder is subsequently billed by an issuer for repayment of the credit extended at once or on an installment basis - Cash card: Cash cards are similar to pre-paid phone cards The card is worth a certain amount of cash and the retailer must use a special cash card reader to debit the card Each purchase is deducted from the value left on the card until the pre-paid amount is spent These cards are just like cash – if lost or stolen, there is no way to retrieve the money on the card * Technical feature: - Magnetic stripe card: The magnetically encoded stripe on the bankcard plastic that contains information pertinent to the cardholder account - Smart card: The smart card, also known as the chip card, contains a computer chip embedded in the plastic When read by a special terminal designed to interact with the embedded chip, the card can perform a number of functions or access data stored in the chip These cards can be used as cash cards or as credit cards with a preset credit limit * Issuer: - Bankcards: Banks, financial institutions around the world distribute cards A cardholder borrows money against a credit line and repays those funds with interest if the balance is carried over from month to month These cards are used all around the world, such as: Visa USA, MasterCard… - Travel and entertainment cards: travel and entertainment corporations distribute their own cards so they are not considered bankcards since they are not issued by a financial institution These cards are widely used by business for their travel and entertainment expenses, such as American Express (AMEX), Dinners Club… * Area of using card: - Domestic card: Card is used in domestic only with legal tender of that nation - International card: Card is used around the world, used strong currencies in transactions 1.2 Cards’ activities in commercial banks 1.2.1 Entities join card activities Figure - Participants in bankcard transactions The issuing members International card organization The acquiring members Cardholders Merchant Source: Developed for the report The figure shows entities joining a bankcard transaction * International card organizations: (ICO) For example MasterCard or Visa International/Visa USA, they are worldwide payment service organization composed of member institutions They set and enforce rules and regulations governing operational procedures, interchange procedures, and graphic design approval of their cards… These organizations not have a direct relationship with cardholders and merchants Any bank has international card must be a member of an ICO * The issuing members: The cardholder’s financial institution (usually called the issuing member, or issuer) is a licensed member of an ICO The issuer directly issues the card to the approved cardholder The issuer may also benefit from services of a third party processor and/or association in processing information and payments * The acquiring members: The acquiring members, or acquirer, solicits, screens and accepts merchants into its bankcard program The acquirer is also a member of an ICO, and holds a written agreement with the merchant to: - accept the merchant sales drafts - provide the merchant with credit card authorization terminals, instructions, and contracted support services - handle and process the credit card transactions The acquirer usually charges the merchant a merchant discount for handling the transactions The acquirer is licensed by an ICO agrees to follow the operating rules and regulations of the two associations In fact, many banks and financial institutions are both issuers and acquirers As issuers, they maintain the cardholder relationship As acquirers, they maintain the merchant relationship * Cardholders: The customer to whom a card has been issued or the individual authorized to use the card The cardholder uses the bankcard either to purchase goods and services from a merchant, or to obtain a cash advance from a member for which the cardholder receives a monthly bill from the issuer * Merchant: The merchant can be virtually any company which meets the qualification standards of an ICO and an acquirer The ICO usually require that the merchant be financially responsible and good repute The merchant has a written agreement with the acquirer to accept the bankcards as a payment and to abide by the terms of the agreement 1.2.2 Transaction process * Issuing: Figure 3.- Procedure of issuing bankcard Customer Application Guide of using Approval Handing card and PIN over Registration of issuing Receiving new card and PIN from centre Source Developed for the report + Customer - Customers fulfill and sign on the application and credit card agreement - Required documents: photograph 3x4 or 4x6, Copies of Identity card, copies of passport, visa or residence permit… - Types of guarantee for card payment + Issuing banks - Checking customer’s application, then decide to approve or not - Approval: send customer’s request of opening card to card centre - Receiving new card and personal identity number (PIN) from card centre - Handing card and PIN over customer - Guiding customer to use card + Card centre - In responsibility of receiving information of customer from issuing banks - Produce new card - Deliver card to issuing banks * Acquiring: Figure 4.- Procedure of acquiring cards (5) Issuing members Cardholder (6) International card organization (1) (4) (2) Acquiring members Merchant (3) Source Developed for the report The acquiring procedure beginning with the cardholder: (1) - The cardholder purchases goods or services from the merchant (2), (3) - The merchant, in effect, sells the transaction to the acquire and is reimbursed the amount of the sales ticket by the acquirer (4) - The acquirer then summits the ticket to the issuer for payment, via the ICO interchange and settlement system (5) - The issuer bills the cardholder (6) - Finally, the cardholder repays the issuer for the goods or services originally purchased from the merchant ICO are at the centre of the transaction process, maintaining the flow of funds and information between issuing and acquiring members The exchange of financial information is called clearing The exchange of the actual funds for the transaction and the fees associated with them is called settlement The term used to refer to the clearing and settlement system as a whole is interchange 10 CHAPTER TWO THE ROLE OF MARKETING ACTIVITIES TO BANKCARD AND ACTUAL STATE OF AGRIBANK CARDS 2.1 Introduction of Vietnam Bank for Agriculture and Rural Development (Agribank) - Thanh Xuan branch 2.1.1 Foundation and development of Agribank Thanh Xuan In 2007, Vietnam Bank for Agriculture Development - Thanh Xuan branch was founded under Decision No 1292/QĐ/HĐQT/TCCB dated November 29th, 2007 by the Board of Directors of Agribank with the primary staff of 36 people Located in 90 Lang Street, Thanh Xuan District, a vast residential area with many convenient economic conditions, Agribank Thanh Xuan has many advantages to business effectively Thanh Xuan branch operates its business mainly on Thanh Xuan District and other Districts in Hanoi Being in the strategy of organization network development of Agribank, Agribank Thanh Xuan has played an important part in improvimg business performance of Agribank, as well as contributed to shift economic structure, promoted the further economic-social development of Thanh Xuan District in a comprehensive and sustainable way Since establishment, Agribank Thanh Xuan has continuously extended trading networks, diversified items of business, currency, and credit, promoted capital sources The branch is also focusing on improving the qualification of staff both in professional knowledge and skills as well as foreign languages, concerning about stabilizing and raising the networking and living conditions of employees Facilities are modernized, especially information technology, to serve the business better From establishment, the branch always makes profits, the revenue is higher year after year, contributing to State budgets increasingly, creating credibility with customers 19 for cash withdrawal/advance and other services at ATM/EDC and other cash disbursement points in over the world + International Credit Card: means credit card bearing Visa/MasterCard trademarks issued by Agribank, allowing cardholders to use the card within granted credit limit for payments of merchandises or services or cash advance and other services at ATM/EDC and other cash disbursement points in over the world 2.3.2 Actual state of Agribank card in the branch 2.3.2.1 Some results of development Agribank card The Board of Director has made plans, decisions and increasingly invested into card operation In addition, all staff has made an effort to develop card business so through the time card operation has gained breakthrough and outstanding achievement, such as: success in connecting to international payments of Visa, MasterCard, connection to Smartlink card system, issuing international Visa, MasterCard, and related devices and application….Speed of card growth has always been higher than average speed of card growth in the card market of Vietnam Especially, in 2009, the speed of Agribank card growth was times higher than the rate of Vietnam card market At the present time, Agribank issued over 4.2 million cards, ranked 2nd in card market Besides developing quantity of cards, Agribank always concern to enhance quality of products and services, ensure customers’ security Except for HSBC, Agribank was the only commercial bank in Vietnam which invested and carried out measures to prevent copying cardholders’ information at 100% ATM In the recent years, Agribank took special notice of investing modern devices, upgrading network system, and standardization procedure of operation to develop card business Agribank has proceeded many plan and investment: two issuing system which is the most modern in Vietnam and can produce 1,500 cards per hour; invest ATM, EDC/POS system at more than 2,300 branches, dealing rooms nationwide…Agribank is also regarded by Banknet and international card organization as the bank which handle customers’ complaint quickly and on time 20 These achievement has play an important role in affirming Agribank card’s position in Vietnam market To the branch, the time of operation is quite short, however, card business still has certain successful * Issuing operation: Table 2.- Result of issuing cards Unit: card/VND million Types of card Quantity Profit Balance Collected Service fee Local Debit Card 2,763 6,452 International Card 46 505 2.1 Debit Card 29 Credit Card 17 195 Total 2,819 145 2.7 310 2.2 1,425 6,957 402 147.7 Source 2009 Income statement of branch - Local Debit Card: Total cards issued were 2,819 cards, went up 52,8% (1,892 cards) compared with December 31st, 2008 Average rate of issuing card was 230 card per month, profit of transactions was nearly VND billion, balance of call deposit account was VND 1,425 million Collected service fee of the last quarter of the year was zero because of free issuing card in this period However, accumulate of 12 months was VND 147.7 million, still increased 44,4% (VND 102,3 million) compared with December 31st , 2008 - International Visa, MasterCard In September, 2008, Agribank issued international Visa Card widely, issued two new card products: Agribank Visa Debit – Success and Agribank Visa Credit – Golden Key As a result, cardholders can use cards for payments of merchandises or services at over 20,000 cash disbursement points and other services at 4,800 ATM 21 labeled Visa in domestic, for cash withdrawal/advance and other services at 25 million cash disbursement points and one million ATM/EDC in more than 150 countries in over the world In February, 2009, the bank began issuing some products of international MasterCard These were events which marked outstanding milestone of the bank in diversifying products and services of cards in order to enhance Agribank prestige, trademark in Vietnam market Furthermore, association with Agriculture Bank Insurance Joint – Stock Corporation (ABIC), the bank provides insurance services for cardholders of international card This service adds more value for customers The rate of issuing international cards also increased 53,3%, 46 international cards (compared with 30 cards in December 31st, 2008) In addition, the branch also took notice of developing existing services, products and related applications in order to best serve customers All networks of Agribank carry out printing PIN in Card Centre This was the result of applying technology in banking card operation In the past, printing PIN for card were carried out solely in each branch so PIN code were not secured At the present time, all PIN code of cards are printed at Card Center with specialized material and high secure This shows profession of providing card products and services * Acquiring cards Beside issuing card, acquiring card operation plays an important part in success of card business of the bank Agribank has advantage of network nation-wide, so acquiring operation has been developed, gained good result and brought significant profit to the bank Table 3.- Devices of Acquiring card of Agribank 22 Devices ATM 1,202 27,912,561 Total EDC include: 1,868 57,783 1,664 57,102 - EDC at Cash disbursement points Profit - EDC at Counters Quantity 204 681 Source Report on result of 2009 card products and services At the present time, Agribank has 1702 ATM (2nd quarter of 2009 Agribank added more 500 ATM) and that is 20% market share and the highest quantity of ATM in Vietnam market The bank also expends thousands of EDC/POS at counters and cash disbursement points The bank has 1981 EDC/POS In order to use ATM, EDC/POS effectively, Agribank extends payment acceptance to 18 commercial banks in Vietnam, and Agribank is now only bank which accept payment by China Union Pay card on Banknet at 100% ATM Diagram 1.- Quantity of ATM, EDC Source Report on result of 2009 card products and services The graph shows the quantity of ATM, EDC changing over period of four years In 2007, the quantity of EDC is lesser than ATM, however, it then increased dramatically and followings of years, EDC has passed ATM in quantity 23 At the branch, and each dealing room all have its own ATM 2.3.2.2 Existing problems and difficulties Besides successes achieved, card products and services also had drawbacks Firstly, research target market was inefficiently Researching market and finding out who is the potential customer play a strategic role in develop card products and services Whether the branch should develop a new product or service, add value for customers, set a fee or price policy,… all depend on the findings of study target market Various methods of market research are used to find out information about markets, target markets and their needs, competitors, market trends, customer satisfaction with products and services, etc Businesses can learn a great deal about customers, their needs, how to meet those needs and how the business is doing to meet those needs Businesses need not to be experts at methods of research either However, research, collection and study information about card services has not synchronized, collection activities has not carried out frequently Market research has just studied mainly at card centre by collecting information in website, State Bank of Vietnam, banking card association, press…As a result, at branches, researching market for card products and services coped with many difficulties Secondly, drawbacks of functions, utilities and quality of services Although total quantity of issued cards was quite high and continuously increased, quality of card products and services has limitation At the present time, domestic card is mainly used to withdraw cash at ATM, transactions for payments at EDC/POS are very few About the quality of services, errors in network, suspension service still occurred This affects negative to prestige, trademark of Agribank as well as branch Thirdly, price and customer policy was still not flexible.The branch follows the rules of Agibank The bank has not had specific strategy and programme to calculate exactly fee for each types of card products and services Therefore, defining fee of services did not evaluate exactly core, effectiveness and quality of services and 24 products Defining fee of services now still bases on the fee of other commercial banks in the market Fourthly, marketing activities was not inadequate Advertisement, promotion activities for products and services in general, and for card ones in particular has not done methodically in a long-term plan There were not many marketing activities and effectiveness of them was still not high Advertising leaf leaves, panel, image… were not diversified, distinct and has not attracted customers well In addition, current network of card products and services of the bank distributed basically at counters of branch Whereas some commercial bank began distributing their products and services by modern way such as: on Internet, issuing agencies, restaurants, shops, etc Last but not least, comprehension, knowledge, degree, and many skills of marketing staff Average age of marketing staff is quite young, this is a strong point of work force On another hand, it also has disadvantages Marketing staff is young, the branch was established for short time so sometimes operation lacks professional skills So as to develop card operations of the branch, affirm a worth position and importance in the overall operation of a modern commercial bank in the 21st century, all above problems and difficulties must be addressed and overcome by Agribank Thanh Xuan as well as Agribank 25 CHAPTER THREE SOLUTIONS TO DEVELOP AGRBANK CARDS AT AGRIBANK THANH XUAN 3.1 Advantages and disadvantages in developing bankcards 3.1.1 Advantages Vietnam has big population and average per capita income increasingly go up This is a potential market for banks in providing modern products and services Non – cash payment scheme, period 2006 – 2010 and orientation to 2020 were approved by the Prime Minister The Government, State Bank of Vietnam published some legal documents related, this is the legal foundation for banks to operate their card products and services These services directly contribute to proceed non – cash payment scheme in society According to statistics of State Bank of Vietnam, up to 1st quarter of 2010, non – cash payment made up 85% of total banking payments (in 2007 – 83%) Modern science and technology is a key factor in developing new types cards, products and services related Bankcards gradually become a popular payment method in societies with more than 22 million cards of 47 organizations which provide payment services (in June,2009, 17 million cards, 41 organizations), debit card make up 96,76%, credit card 1,59% and others 1,65% of total cards Statistics of State Bank of Vietnam also showed facilities served card operation are continued being improved, upgraded with 9,000 ATM, and more than 35,000 EDC/POS (In June, 2009, 8,800 ATM, 28,300 EDC/POS) All organizations which provide payment services, has made an effort in giving customers new products and services with more utilities, safe and effectiveness 26 3.1.2 Disadvantages Nowadays, card business is a keen competition, especially at big cities where economy develops, urbanization speed is fast and many commercial banks concentrate and operate its business In addition, foreign banks which are strong rivals of financial budget, management, and technology, participate in domestic market Commercial bank compete not only market share, market, products, services, kinds of fee, utilities, and added value of bankcard but also human resource To exist and develop in such a competitive environment, domestic commercial banks are required to try to enhance its competitive capacity by modern products and services with high quality, value for money Habit of using cash in paying for goods and service is still very popular in societies At the present time, State Bank of Vietnam has not allowed commercial bank to charge fee at ATM transactions This is a big difficulty for commercial banks in meeting the cost which they have to invest and maintain devices in order to promote quality of services Free of charge at ATM transactions also can not encourage commercial banks, branch to take care of development exiting products and services as well as new services 3.2 Marketing mix solutions to develop Agribank card 3.2.1 Study and set the target market As said above, market research is very important to all products and services in general, and to card products and services in particular Market research has three ways to bring a new product or service to customers Mass marketing: businesses mass produces, mass distributes, and mass promotes one product to all buyers Product-variety marketing: the seller produces two or more products that have different features, styles, quality, sizes, and so on 27 Target marketing: producers identify market segments, selects one or more of them, and develops products and marketing mixes tailors to each Today’s business are moving away from mass marketing and products-variety marketing and toward target marketing Target marketing can better help businesses find their marketing opportunities Producers can develop the right product for each target market and adjust their prices, distribution channels, and advertising to reach the target market efficiently Vietnam is a developed country with more than 70% population living in country sides and near 80% agriculture work force These population has low income, unstable and low educational degree, so this is not the target customers of card products and services In cities, population parts are more diversified Furthermore, there are now more and international companies, joint-stock companies, companies with foreign capital in Vietnam The work force work in fields which have high income and stable such as: petroleum, banking, telecommunication, aviation and private businesses increasingly make up bigger population They has high income and stable and also has needs and enough conditions in transactions with super market, hotels, tourism, planes frequently These are potential customers which the bank should concentrate to reach Other customers who also have real need of using card products and services and they are quite crowded, are foreigners Although this group often use cards issued by foreign countries, the bank has suitable policies to advertise, promote and have good reputation, this is also an important customers In addition, a great numbers of students at universities, colleges and vocational schools in cities who has already been customers of the bank This group may not bring much profit at present, however, the bank should have policies to keep relationship In near future, after graduating and having stable jobs these customers will bring a lot of profit to the bank 28 To Thanh Xuan branch, card products and services now has certain features such as: type of products or services, fee, and has its own customers To develop existing products and services or produce a new product is not a simple task that can be done in short time It required effort of all leaders and staff in long term plan First of all, the branch has set target objectives and then step by step try to complete them in best way Objectives: To change thought, perception about development card products and services of leaders, staff in the branch in the new circumstance To take its advantages, continues confirming and continuously extend market share, affirm trademark and position of Agribank in card business To study, set strategic plan to develop card products and services in period of 2010-2015 To study, develop new kinds of distinguish products, add value, functions, utilities to new products which can compete in the market About market share, market: in 2010, the branch strive to issue more 3,500 cards About acceptance card’s network: the branch and all dealing rooms try to use effectively existing ATM, force to develop, extend acceptance card’s network 3.2.2 Marketing mix solutions to develop Agribank cards Agribank Thanh Xuan has strengths, opportunities, as well as weaknesses and challenges It is important to study how to combine these factors to develop strengths and opportunities and how weaknesses and challenges are been minus Through internship time at Agribank Thanh Xuan, study these factors of the branch as well as information from internet, second data from branch, here are some suggested solutions 29 3.2.2.1 Product policies At the present time, the bank provides 11 products of cards, include: international debit, credit cards of Visa, MasterCard, domestic debit card – Success, Agribank card combined with Vietnam Bank for Social Policy (VBSP) – Lap Nghiep, card combined with academies, universities, colleges, vocational schools to provide to students We can say that products of Agribank card are quite diversified Today, there are three ways of issuing domestic card: - Vietnam Card Association (VCA) leads bank members issuing domestic card which is used at all bank members All transactions by cards are used Vietnam Dong and concentrated payments through Association These transactions not charge fee in sending or receiving data between domestic banks and international card organizations - Some bank members of VCA have agreement to issue one domestic card product and then it can be used among these bank members and in domestic only This card is similar to the first one, however, it is accepted by only a group of members, not all banks Card transactions is not through VCA but directly settlement and clearing among members - Domestic card of one bank member issues, uses in domestic only This card is used at agencies, branches of issuing banks The branch can think of develop existing card products and services The branch can issue a debit card for customers who have banking account at Agribank The cash limit of cardholder depends on balance of his banking account at the bank Each time, customers pay for goods or services or withdraw cash, information of transactions will be sent back to centre to be approved and deducted the money in banking account of cardholder at the bank This card will both help customer manage their purchasing and limit settlement risk for the bank in the case customer is not able to settle their payment This card will be a good match to customers who has not need of use card frequently, but use in going travel, on business, etc With this card, the bank 30 still pay customers interest in their banking account and charge fee on transactions done This will bring profit to the bank instead of free of charge with current domestic card Besides issuing more debit cards, existing combined card with Vietnam Bank for Social Policy, universities, the branch can think of cards combined with other organizations or associations For example, Petrolimex Group Joint-stock Commercial Bank (PG Bank) with Flexicard – customers can buy petrol with Flexicard, or Bank for Investment and Development of Vietnam (BIDV) combine BIDV card services with Jetstar Pacific, Vietnam International Bank (VIB) combine VIB card services with Mobivi company, Viettravel Company, etc The bank should develop combined card with commercial centre, taxi, aviation company, hotel, etc Combined card brings profit for all participants To customers, they can get discount at partners of their banks Companies and banks will have added customers from partners The bank can contribute in promoting partners’ business, on contrary, companies also advertise card services of the banks For each group of customers, the branch need to identify which features of a card that attract each group of customers most Then, the branch has specific policy to recommend which card products best fit these group Combined card tend to be a good product to reach different groups of customers In fact, for recent time, Marketing Department has already had plans to develop combined card with more universities and supermarkets in city and District These plans need effort of all staff of Marketing Department as well as the branch, and specific strategies 3.2.2.2 Price policies As said above, one of drawback of branch is that the branch has to follow the regulations and rules of Agribank, so it is clearly that the branch does not have much choices Furthermore, Agribank now does not have specific price, fee policy However, in the branch, it can take survey of itself with existing customers and other entities, institutions Based on findings, the branch may build suitable price, fee, customer policies Then, these policies can be handed over Head quarter for approval 31 Agribank Thanh Xuan also can take advantages of free issuing card to attract more customers Every year, Agribank always has periods of time when the bank issues Agribank card for customers free of charge, for example, for new students In these period, the banks always issues Agribank cards in a great quantity However, free of charge, the bank can take advantages of the minimum balance in these new card This way help to increase total quantity of cards Furthermore, this also help promote image, trademark of the bank to more customers In addition, the branch has to have clear fee, price, policies of products and services, customer policies and has professional staff to present to customers these policies 3.2.2.3 Promotion policies In order to reach more group of target customers, the branch has to develop advertisement, recommend to customers about convenience, safety, and many other advantages of card products and services Besides suitable segmentation of customers, the bank has to carefully apply promotion strategy to each groups in suitable ways Traditional advertisement in press, television, radio, newspaper or banners of restaurants, hotels, supermarket, buses is an essential step However, costs of these activities is not cheap The branch can combine advertisement with cash disbursement points In this way, both the branch and cash disbursement points can save costs and the branch still promote its services and image Besides, the branch can organize presentations which introduce and recommend card products and services at target corporate, institutions At these presentations, the branch will introduce about its card products and services, customer care, discount, etc To this, it is required staff with presentation skill, good qualification, experiences, etc At the present time, the Director of the branch has already had plan to train general knowledge of banking operation for all staff of branch The Director requires that all staff have to have good knowledge of their operation and general knowledge about banking This is a good starting point 3.2.2.4 Place policies 32 Agibank has a large network nationwide, and good reputation, prestige, it is very good base to develop cash disbursement points In fact, the bank install ATM, EDC/POS free of charge, so agencies have not protect these devices In the past couple of weeks, a child died because of leaky of a Agribank ATM This strongly affected to Agribank’s reputation badly, so protection and maintenance this device is very important Besides of maintenance existing devices, the branch should have plan to use them effectively and plan to extend more cash disbursement points Expanding cash disbursement points is very expensive To develop acceptance card network, the branch has to find way to keep good relationship with these agencies, give them favour in transactions with the bank 33 CONCLUSION Bankcard is a modern, convenient payment method and become more and more popular in Vietnam as well as over the world Bankcard directly push “Non-cash payment scheme” of Government into operation It help reduce cash pressure and is a necessary tool to reach a non-cash society Card trend increasingly develop and play more role in bank business As a result, bankcard products and services are very important businesses of banks, contribute to revenue, and help to diversify banking products and services Joined bankcard market later than many other commercial banks, however, Agribank takes advantages of a nationwide network and good prestige and reputation So for over six years of development Agribank card, Agribank now ranks nd in card market Time of operation is quite short, Agribank Thanh Xuan has coped with many difficulties and challenges Vietnam card if a great potential market So suitable business strategies combined with effort of the branch, and support from Agribank we believe that Agribank Thanh Xuan can get positive results, bring card products and services to more customers Card services will become one of the top services and also confirm trademark and position in Vietnam card’s market in the near future By analyzing, evaluating of actual state of card operation at Agribank Thanh Xuan, the report suggests some opinion, solutions in contributing to improve and develop card operation at the branch However, personal opinion and comments are from subjective point of view, ability and knowledge is also limit, suggestions may be insufficient I hope to receive ideas, comments from professors, teachers, readers, friends to improve my report ... continuously made an effort to diversify the variety of services to meet and satisfy better customers’ needs and demands 2.2.3 The role of marketing to Agribank cards Tasks of Marketing Department was... work and plans of department to the Director, make plans and assign tasks to the staff to complete objects of Department and the branch - Marketing staff: staff are in charge of Card section and. .. success of the branch 2.2.2 Current marketing activities The most important function of the department is to research and then bring banking services of the branch to more and more customers Services