1.ANALYSIS, EVALUATE THE CURRENT STATUS OF ICT APPLICATIONS IN LIENVIETPOSTBANK – DONG DO BRANCH 1.1 Introduction about Lien Viet Post Bank Lien Viet Post Bank (LPB), formerly known as Lien Viet Joint Stock Commercial bank (LienVietBank), was established under establishment and operation license No 91/GPNHNN on 28/03/2008 by Governor of the State Bank of Vietnam In 2011, with the Vietnam Post Corporation (Vietnam Post), contributing capital to the Bank equal to the value of the Vietnam Postal Savings Service Company (VPSC) and in cash Lien Viet Bank has been allowed renamed in to Lien Viet Post Joint Stock Commercial Bank by the Prime Minister and the Governor of the State Bank of Vietnam Along with the name change, Vietnam Post Corporation (Vietnam Post) became the Bank's biggest shareholder of Lien Viet Post bank The founding shareholders of the LPB are Him Lam Joint Stock Company, Saigon Trade Corporation (SATRA) and Tan Son Nhat airport Services Company (SASCO) Currently, with chartered capital of 6460 billion dong, LPB is one of the 10 largest Commercial Joint Stock Banks in Vietnam The shareholders and strategic partners of the LPB are the financial institutions - big banks operating in Vietnam and foreign countries such as the Bank for Agriculture and Rural Development of Vietnam (Agribank), Wells Fargo Bank (USA), Credit Suisse Bank (Switzerland), Oracle Financial Services Software Limited Company 1.2 The concept of e-banking services Currently there are many different interpretations of the concept of e-banking services There is the perception that e-banking is the banking services allowing customers to remotely access in order to: gather information; perform payment and finance transactions based on the depository account at a bank, and register to use the new service In this sense, e-banking services is a computer software system that allows customers to learn and use banking services through its network connection with the bank The State Bank of Vietnam also has a definition of e-banking services that is: “The modern and multi-utility banking products and services of banking is distributed to wholesale and retailers customers quickly (online, continuously 24 hours per day and days/week, not dependent on space and time) through distribution channels (Internet and access equipment such as computer terminals, ATMs, POS, phone landline, mobile phone ) is called as e-banking services” Thus, through the above-mentioned concept, we can understand that e-banking is the banking services provided through electronic media and telecommunication networks In particular, under Article of the Law on Vietnam Electronic Transactions, in 2005 electronic media is technology activities based on electrical, digital, magnetic, wireless transmission, optical or electronic corresponding technology Telecommunication networks including the Internet, telephone networks, radio networks, intranet, extranet… 1.3 Advantages of e-banking With the character that the transaction is completely done via electronics and telecommunications networks, the advent of e-banking has brought many practical benefits for banks, customers and society For banks, primarily the advent of e-banking services opens a new development channel for banking services Through the provision of e-banking services, the bank can easily expand the scope of their activities, reach customers anytime, anywhere with no limits on space and time Through the electronic media and telecommunication networks, the bank may conduct promotional activities; introduce products to customers more quickly and conveniently Besides, the bank can cut down related costs such as office expenses, staff costs and other expenses of papers, treasury management system For customers, the actual e-banking service is easy to use, effective and can help customers to save time and costs The transaction steps through e-banking service are already pre-programmed, so the customer only needs to comply with the required steps, the transaction will be done correctly Using e-banking services, with the electronic media networking telecom customers can perform their transactions anytime and anywhere In addition, with the characteristics of the online transaction entirely, the banks can link together into the card associations to facilitate customer in its interbank transactions For society, the advent of e-banking services has created a new operation mode, contributing to the economic and commercial activities development, services and tourism development, facilitating open extensive trade and economic cooperation with the region and the world 1.4 The actual use of e-banking services in LPB – Dong Do branch: 1.4.1 General situation a Operational scale and product kinds of e-banking services in LPB - Dong Do branch E banking service products in LPB – Dong Do branch includes: + Card service - Debit card - International payment cards + System automatic teller machine ATM and POS systems By 2014, the bank has 57 ATMs over the country + Some modern e-banking services - SMS Banking - Internet Banking - Mobile Banking - Bank Plus - Electricity bill collection service, collecting Viettel - E-Commerce Services - E-com: online shopping b Comparison of e-banking services of LPB – Dong Do branch with other banks - In term of Features + E-banking services of Lien Viet Post Bank – Dong Do branch offers full basic functionality to meet the needs of most customers when transacting with Bank: internal and external transfer of the system, information inquiry, pay bills application, send a request… + With modern technology basis, e-banking services of LPB – Dong Do ensure fast and automatic transfers, (compared with a number of banks that are applying semi-automated technology, the online transaction receipt is be done through tellers), safety (security technology, two factor authentication OTP) + Service interface is friendly, simple, and easy to use with many customers -In term of fee and limitations + Fee for e-banking service transactions of LPB – Dong Do branch is now at the lowest cost (compared to all other banks) + Transactions limits are limited, but still ensuring customer convenience Conclusion: The e-banking services of LPB in general and LPB - Dong Do branch in particular are full of basic utilities but there is not significant differences compared with other banks, not to create individual characteristics of LPB 2.EVALUATE E-BANKING SERVICES DEVELOPMENT STATUS IN THE PAST 2.1 The achievements Many customers highly appreciate the service of Internet Banking and Mobile Banking of LPB and they decided to perform most transactions through this channel instead of come to the counter as well as the proposal to allow LPB to transact through internet banking with high limits E-banking Services brings effective cost benefit, long-term for the branch, such as annual fees, transaction fees (fees for payments, bill payments ) E-banking Services help CN save costs related to the expansion of kiosks, transaction offices, reducing the pressure to serve customers at the counter, so that the customer service reps will improve efficiency customer service and in-depth focus on the work of sales, service development The services helps increase the number of customers, increasing demand of existing customers 2.2 These limitation and cause a Limitation - The list of products and services is not rich, especially the products and services of high technological content, savings products - The quality of e-banking services have not yet satisfied clients in the higher levels as sending cash into your account, opening account, transferring international transfer, international payments, additional payments of bills through the Internet Banking service, the registration service transactions directly to the trading desk of the bank branch, or not implemented as call center services to compete with other banks as ACB, Dong A - Because of delays in implementing, the program is still in operation and completion, many potential risks, lack of management providing electronic products The combination of the system's stakeholders, connection speed, or technical error terminal does not guarantee the quality of service leads to low quality, customers complain about services - The e-banking products and services depend heavily on certain types of customers The number of customers registered to use the service is small compared to the number of customers to open accounts at LPB – Dong Do branch, incommensurate with potential of the bank - The implementation of these product promotional and marketing activities is passive due to lack of uniform consistency from design to deployment services The marketing activities are not actually associated with the development of services - Handling customer’s complaints about products and services due to the fault or inflexible technology system, answering customer's staff has yet to fully responsible and contribution spirit - E-banking transactions depend heavily on traditional storage evidence, not yet showing electronic transaction documents b Reason of limitations - E-banking products are still in the early stages of deployment, upgrade, development strategy orientation have not yet carried out synchronously - Not specialized human resources, lack of practice environment, just focus on traditional banking services - Product promotion and customer policy is ineffective - Although Branch has implemented most of the products and services, it is low efficiency, revenue service still depend mainly traditional services such as billing, underwriting, for trading ; retail services such as WU, VnTopup, and Bank plus has not developed in comparison with potential customers at the branch - Some new products and services have not been implemented for the client strongly, incommensurate with the position of the branch locations on a geographical potential development as the following services: internet banking, mobile banking, collection services electricity, Viettel collection, e-commerce services e-com: online shopping - The coordination between departments in the branch to deploy product and service development that is not harmonious, unified - Customer base has not diverse, primarily focusing on business customers, individual customers are limited, and therefore, it is difficult to develop e-banking services - Due to the habit of using cash for all transactions, it has not yet to be changed - Educational level, income level is distributed unevenly between rural and urban areas, therefore, now e-banking services only really develops in the big city - Due to the limits of the law and to ensure peace of mind for customers, before using ebanking services, customers have to register bank transactions to establish the legal documents, implement a commitment between the bank and customers 3.SOLUTIONS FOR E-BANKING DEVELOPMENT AT LPB – DONG DO BRANCH 3.1.Orientation and goals of e-banking service development of LPB – Dong Do branch Vision by 2016: LPB becomes the leading commercial banks in Vietnam in the retail banking sector, equal with advanced commercial banks in Southeast Asia; Provides products, retail banking services in sync, diversity, quality best, fit the target customer segments 3.2.Solutions of e-banking service development of LPB – Dong Do branch 3.2.1 Solution for services scale development a Solutions for distribution channels expanding - Increase the number of installed ATMs, POS, especially in commercial centers, public places etc … - Focus on card development, especially international credit cards, more development of utilities ATM card, ATM - POS deployment - Link to the University, opened for student account and ID card - To accelerate the deployment of e-banking services: Internet banking, mobile banking, mobile banking, bank plus, to contribute to more complete system of product banking services distribution channel to customers in general level of the market - Enhancing the new transaction places: associating with insurance companies, cars purchasing agencies, supermarkets, amusement parks, entertainment, tourist attractions so that the employees of this company are distributors of products and services for ebanking of LPB – Dong Do branch - Identify and focus on the target customers b Solutions of human resources development - Firstly, staff training policy The application of modern technology required to gradually improve the staff’s education This is the key factor deciding success or failure of each bank Therefore, LPB – Dong Do branch must have plan to improve the staff’s education through annual staff training courses to enhance communication skills and customer care, improve sales skills, selling bank products and services to create a professional human resources - Secondly, remuneration policies and attract talent: LPB – Dong Do needs to have a suitable remuneration policy with a appropriate salaries scheme for each working position on the basis of a comprehensive capacity evaluation to motivate and encourage employees to and create a long-term commitment with the bank Constantly expand ebanking product sales emulation program, besides, emulation and reward assessment in the end of quarter, year, showing the timeliness of treatment policy Reward and punishment regime is clear; employee evaluation is fair and objective c Marketing solutions: + Boosting sales activities + Boosting marketing and communications activities of e-banking services Currently, most banks provide similar e-banking products and services, consumers have difficulty in distinguishing; assess the quality of products and services So LPB – Dong Do needs to create a style, a reputation for its e-banking services to go easy on the customer's perception fastest through the following methods: - Conduct market and customers segments to be able to identify appropriate markets and target customers, on the basis of policies that build products and services at reasonable prices - Strengthening internal marketing, LPB – Dong Do branch must be user and understand the e-banking product and services of the bank At the same time, building professional marketing and customer relations staff, to understand customer needs and serve our customers in the best way - Promote online marketing: Customers who have the habit of using the internet are potential customers that can easily use the e-banking service 3.2.2 Solutions for services diversification a Completing the existing products - For card products group: Complete existing products in form and content, can change the name or change the form and design of the card in order to be convenient and beautiful, creating more attraction to customers and thereby create and maintain the amount of customer using card - For e-banking product group: more complete utility of the deployed product but not really effective to provide confidence to the customer, promotion policies apply some private clients have paid big sales: calculate the fee waived or reduced money transfer services, free shed salary in order to attract customers to large cash sales, increased revenue service b Developing new products - For the card product group: diversify cards product portfolio, especially domestic debit card, strengthen links with bases that accept cards as supermarket chains and restaurants to increase card payment sales and ATM development and salary payment deployment - For e-banking product group: Need to invest, research to provide more and more the utility of current e-banking products and developing more new products to meet increasing demand of customers c Ensure price competitiveness - Perform e-banking services survey prices in a number of other banks to adjust prices accordingly - Promoting flexibility of pricing policies, instead of just calculating each transaction as at present, to extend the deadline a quarterly or yearly fee, apply incentives fee for VIP customers - When applying for promotions, lottery, should apply to all e-banking services to encourage customers to use 3.2.3 Solutions to improve service quality a Solutions to increase utility for e-banking services + Strengthening equipment innovation, accelerate project completion, upgrade core banking system to ensure fast transaction speed and timely + Ensure stable transmission system by investing in infrastructure and network engineering development, + Rapidly deploy investment projects related chip card systems, call center project for customer support, user-level management for the branches b Solutions to improve the ability to meet customer needs Building customer service standards Building appropriate customers policies Building support and complaints channels of customers in order to satisfy and provide confidence to customers when trading c The solutions to increases the reliability of e-banking services  Enhance security by supporting network security software programs  Adding to the contract e-banking service and disputes resolution if any  Provide commitment lies in its ability, should not make too high commitments to attract customers 3.2.4 Solutions to reduce risk in e-banking services supply a b c d Risk management in the internal of the LPB – Dong Do branch Risk management in e-banking transaction with customers Risk management with third party Risk management in case of incident CONCLUSION In recent years, LPB – Dong Do has continuously tried to enhance brand image and status, striving to become the best banking services supplier However, due to competition in banking activities is more and more sharply and similar in technology (Core Banking) is being deployed in commercial banks, bank products on the market is quite heterogeneous, basically, market no longer exists the product with remarkable 10 features except the right strategy of each bank in or to meet the increasing demand of customers To improve the efficiency of the e-banking system, LPB - Dong Do branch is trying to build research and develop competitive products and service, updates and more convenient for customers The branch sets the goal to complete plans in the shortest time to turn LPB become one of the leading bank for e-banking in Vietnam 11 ... mobile banking, collection services electricity, Viettel collection, e- commerce services e- com: online shopping - The coordination between departments in the branch to deploy product and service... Currently there are many different interpretations of the concept of e- banking services There is the perception that e- banking is the banking services allowing customers to remotely access in order to:... limits E- banking Services brings effective cost benefit, long-term for the branch, such as annual fees, transaction fees (fees for payments, bill payments ) E- banking Services help CN save costs related