project report degree professional degree in banking insurance topic improving the quality of credit card services at tpbank lang ha branch

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<b>ACADEMY OF FINANCE UNIVERSITY OF TOULON </b>

<b>PROJECT REPORT </b>

<b>Degree: Professional degree in Banking-Insurance </b>

<b>Topic: Improving the quality of credit card services at TPBank - Lang Ha branch.</b>

1. Le Anh Nguyet

2. Nguyen Phuong Anh ( Leader ) 3. Nguyen Thi Minh Nhan 4. Nguyen Thi Thanh Hau 5. Nguyen Thu Nga 6. Pham Hong Duong

<b>Bank - Lang Ha Branch </b>

<b>Hanoi, 2022-2023</b>

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<b>TABLE OF CONTENTS </b>

FOREWORD ... 1

CHAPTER 1: GENERAL INTRODUCTION ABOUT INTERNATIONAL GOODS AND MISSIONS ... 3

1.1. History of Tien Phong Commercial Joint Stock Bank ... 3

1.1.1. General information about the bank ... 3

1.1.2. Important Events ... 3

1.1.3. Core Values of the Bank ... 3

1.1.4.Basic business activities of TPBank: ... 4

1.2.Overview of Tien Phong Commercial Joint Stock Bank - Lang Ha Branch ... 5

2.1.5. Revenue from credit card business ... 16

2.2. Survey on credit card quality at Tien Phong Commercial Joint Stock Bank Lang Ha Branch ... 18

2.2.1. Survey Model ... 18

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2.2.2. Survey objectives and questions ... 18

2.1.4. Construction of the scale ... 19

2.1.5 Methods of analyzing survey results ... 19

2.2. Survey Result ... 20

2.2.1. General information ... 20

2.2.2. Measuring scale results ... 21

2.5. Evaluation of credit card service quality at Tien Phong Commercial Joint Stock Bank - Lang Ha Branch ... 35

2.5.1. Successful... 35

2.3.1. Limit ... 36

2.3.2. The cause of the limitations ... 37

CHAPTER 3: SOLUTIONS FOR HIGH QUALITY CREDIT CARD SERVICES AT TIEN PHONG JOINT STOCK COMMERCIAL JOINT STOCK COMPANY LANG HA BRANCH ... 39

3.1. Solution ... 39

3.1.1 Technical and technological solutions ... 39

3.1.2 Marketing policy for credit card business ... 39

3.1.3. Expanding network and improving service quality at credit card merchants ... 39

3.1.4. Solution to limit risks in credit card payment ... 39

3.2. Request ... 40

3.2.1 Proposing card business activities at TPBank Lang Ha Branch ... 40 –

CONCLUSION ... 42

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<b>TABLE OF FIGURES </b>

Chart 1. 5 core values of TPBank - Lang Ha Branch ... 3

Chart 2. Organization chart of TPBank - Lang Ha Branch ... 5

Chart 3. The growth of mobilized capital at TPBank - Lang Ha Branch in the period of 2019 - 2021... 6

Table 2. Business results at TPBank - Lang Ha Branch in the period of 2019 2021 .. 8 –

Table 3.Internship plan at TPBank - Lang Ha Branch ... 10

Table 4. Credit card issuance process at Tien Phong Commercial Joint Stock Bank –

Lang Ha branch ... 12

Table 5. Card products at Tien Phong Commercial Joint Stock Bank - Lang Ha Branch ... 13

Table 6. Compare Mastercards credit cards between banks ... 14

Table 7. Number of credit cards issued at TPBAnk - Lang Ha Branch in the period of 2019 2021 ... 15 –

Table 8.Number of merchants in the period of 2019 2021 ... 16 –

Table 9. Sales of credit card payments in the period of 2019 2021 ... 17 –

Table 10. Income from card business in the period of 2019 2021 ... 17 –

Chart 4. Research model ... 18

Table 11. Sample Structure by Gender... 20

Table 12. Usage credit card status ... 21

Table 13. Value of variables ... 21

Table 14. Standard deviation ... 22

Table 15. CRONBANCH’S ALPHA scale ruesults ... 25

Table 16. KMO and Bartlett's Test ... 26

Table 17. Model evaluation results Total Variance Explained ... 27

Table 18. Rotated Component Matrix results ... 29

Table 19. The factor weight level for the observed variable ... 30

Table 20. KMO and Bartlett's Test ... 31

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<b>FOREWORD Reasons for choosing the topic </b>

Along with the rapid development of science and technology, the banking system has introduced many new payment means based on modern information technology, in which the card is considered a breakthrough. Cards can be used to withdraw money, deposit money, transfer money, or to pay for goods and services…

The credit card business of the developed banks has given banks a new position, a new look. In addition to affirming the advanced technology, implementing card services also builds a friendly image for each customer. Card products and services with high international standardization are highly competitive products and services in the integration process. Therefore, card services have been recognized by commercial banks as a very important competitive advantage in the race to target the retail banking market.

Recognizing the role and benefits that the credit card business brings to the bank, Tien Phong Commercial Joint Stock Bank - Lang Ha Branch in recent years has taken positive steps to penetrate the market. This school is new. Tien Phong Commercial Joint Stock Bank (TPBank) - Lang Ha Branch has actively deployed credit card products and services based on the guidelines and orientations of the Head Office in order to develop the bank's business activities and bring customers more benefits. However, the card business of Tien Phong Commercial Joint Stock Bank (TPBank) - Lang Ha Branch still has many problems. How should these issues be resolved in order for the card business to truly become a competitive advantage of Tien Phong Commercial Joint Stock Bank (TPBank) - Lang Ha Branch - that is a pressing issue.

<b>contact with the Bank. That's why my group chose the topic "Improving the quality </b>

<b>of credit card services at TPBank - Lang Ha branch" to research for the graduation </b>

report.

<b>Meaning of the topic </b>

- The topic contributes to the assessment of credit card service quality of Tien Phong Commercial Joint Stock Bank (TPBank) - Lang Ha Branch and proposes some measures to improve this service

<b>Research purposes </b>

- Analyze and evaluate business activities and credit card service quality of Tien

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- Proposing some solutions and recommendations to further improve the quality

<b> Object and scope of the study </b>

❖ Scope of space research

- Tien Phong Commercial Joint Stock Bank - Lang Ha Branch, 22 Lang Ha Street, Lang Ha, Dong Da, Hanoi

- Methods of analysis, synthesis and comparison of data: based on the available statistics, conduct the following specialized analysis, compare and contrast between years, period 2019-2020, 2020-2021.

<b>Theme layout </b>

The thesis consists of 3 chapters:

- Chapter 1. General introduction to the bank and internship duties

- Chapter 2. Actual situation of credit card service quality at Tien Phong Commercial Joint Stock Bank- Lang Ha branch

- Chapter 3. Solutions to improve the quality of credit card services at Tien Phong Commercial Joint Stock Bank - Lang Ha Branch

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<b>CHAPTER 1: GENERAL INTRODUCTION ABOUT INTERNATIONAL GOODS AND MISSIONS </b>

- Name: Tien Phong Joint Stock Commercial Bank

- Business registration number: 0102744865 by the Department of Planning and Investment of Hanoi city

- Head Office: TPBank Building, 57 Ly Thuong Kiet, Hoan Kiem District, Hanoi

TienPhongBank was officially established in May 2008 by FPT Corporation, VMS Mobile Company (MobiFone) and Vietnam National Reinsurance Corporation (Vinare). TienPhongBank wishes to create the best conditions for customers and the business community with efficient and convenient financial services based on high technology. Only after 3 years of establishment, TienPhongBank has been operating profitably. In 2010, TienPhongBank completed an increase of chartered capital of 3,000 billion VND.

<b>Chart 1. 5 core values of TPBank - Lang Ha Branch</b>

Source: TPBank Brochure

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<b>1.1.4. Basic business activities of TPBank: </b>

<b>a) Capital mobilization: </b>

- Receiving deposits from organizations, individuals and other credit institutions in the form of demand deposits, term deposits and other types of deposits- Issuing certificates of deposit, bonds and other valuable papers to raise capital from domestic and foreign organizations and individuals upon approval of the Governor of the State Bank of Vietnam;

- Other forms of capital mobilization according to regulations of the State bank of Vietnam;

<b>b) Credit activities: </b>

discounting commercial papers and other valuable papers, guarantees, financial leasing and other forms of credit extension in accordance with the State Bank's regulations. Vietnam;

<b>c) Payment and treasury services: </b>

- Provide payment facilities;

- Provide international payment services in accordance with the law; - Performing cash collection and payment services for customers;

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<b>1.2. Overview of Tien Phong Commercial Joint Stock Bank - Lang Ha Branch </b>

<b>Chart 2. Organization chart of TPBank - Lang Ha Branch</b>

<b>Bank - Lang Ha Branch from 2019 to 2021 </b>

In 2021, with the real estate market having some fluctuations, it has greatly affected the business activities of TPBank in general and TPBank - Lang Ha Branch in particular. However, with the great efforts and determination of the Board of Directors, the Executive Board and all employees, the Business Unit has been gradually overcoming difficulties, building trust in customers, and improving its reputation in the market. With a right and continuous direction in recent years, Tien Phong Commercial Joint Stock Bank - Lang Ha ranch has made positive changes in many activities such as capital mobilization, capital use... is the specific operation situation at TPBank - Lang Ha Branch.

Capital mobilization is a basic activity of Tien Phong Commercial Joint Stock Bank in general and TPBank - Lang Ha Branch in particular. TPBank - Lang Ha Branch has always actively promoted capital mobilization from all economic sectors such

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organizing attractive promotions for customers, giving gifts to VIP customers on birthdays, holidays, etc. Tet,…

As of December 31, 2021: the total capital of TPBank - Lang Ha Branch reached VND 2,119,767 million.

<b>Chart 3. The growth of mobilized capital at TPBank - Lang Ha Branch in the period of 2019 - 2021</b>

The chart 3 shows that the situation of capital mobilization from deposits of TPBank - Lang Ha Branch in the past 3 years has increased significantly from VND 1,351,634 million in 2019 to VND 2,025,773 million in 2020. VND 674.39 million equivalent to 49.88% with diversified and rich forms of capital mobilization products to meet the needs of customers. Therefore, the increasing amount of capital mobilized has helped TPBank - Lang Ha Branch reduce capital mobilization in the interbank market. This shows that the prestige of the Business Unit is increasing day by day. The lower growth rate in 2021 than in 2020 may be due to the difficult situation of the whole country's economy in 2021. .

Currently, the deposit management is also regularly and seriously implemented by TPBank - Lang Ha Branch through the inspection of professional departments.

<b>b. Activities using capital </b>

Capital use is a very important activity for each commercial bank, it is the main profitable activity of banks, therefore, knowing how to use capital appropriately will help commercial banks. improve the efficiency of their business operations. Recognizing the importance of capital use, in recent years TPBank - Lang Ha Branch has paid great attention to this activity.

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Lending activities at TPBank - Lang Ha Branch

Lending in the operation of commercial banks is a profitable process for the business of the bank. With the function of borrowing to lend, banks in general and TPBank - Lang Ha Branch in particular must find ways to attract customers such as: investing, developing factors to improve the quality of their work. credit, ensuring business efficiency and capital safety. In recent years, due to the complicated developments of the domestic economy, the lending activities of the Bank's branches also experienced many fluctuations:

<b>c. Business results for the period of 2019 - 2021 </b>

2021 is a year of many economic fluctuations in the world as well as in the country. However, being considered as a lifeline in monetary circulation, commercial banks in general and TPBank - Lang Ha Branch in particular have to shoulder a very

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difficult task. TPBank - Lang Ha Branch must both try to meet the needs of customers in the new situation and overcome the old backlogs.

Below is the table of business results of Tien Phong Commercial Joint Stock

<b>Bank - Lang Ha Branch for the period of 2019 - 2021: </b>

<b>Table 2. Business results at TPBank - Lang Ha Branch </b>

<b>Deviant 2021/2020 </b>

Source: TPBank's Accounting and Treasury Department - Lang Ha Branch Table 2 shows that the net profit from operating activities before risk provision expenses of TPBank - Lang Ha Branch in 2021 is the lowest. If in 2019, Lang Ha Branch collected VND 15,738 million, then by 2020, it will receive VND 19,935 million, an increase of VND 4,197 million, equivalent to an increase of 26.67%. But by 2021, net operating profit before deductible expenses will only reach VND 10,360 million, down VND 9,575 million equivalent to a decrease rate of 48.03%.

Profit is achieved mainly from credit activities and accounts for a large proportion of total profit, specifically: In 2019, loan interest accounted for 98.69% of total income, in 2020 loan interest collection accounted for 98.32 % of total income, in 2021 income from credit activities will increase, accounting for 99.23% of total income, the rest will come from service activities. This shows that in addition to

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investing in credit activities, the bank also expands to develop other service activities, making the bank's business activities more and more diversified and rich.

Total expenses in 2021 are higher than in 2020, but in return, the cost of credit risk provision that the Branch has to spend for 2021 is much less than 2020. If 2020 TPBank - Expenses Lang Ha branch has to spend VND 17,424 million for this expense, by 2021 the branch only has to spend VND 8,060 million, which has reduced by VND 9,364 million, equivalent to a reduction rate of 53.74%. This is very meaningful to the Branch, it proves that the credit activities of the Branch are carried out very effectively, which has reduced a lot of problem debts for which the Bank has to use provision for risks. credit risk to compensate.

The Bank's net profit from business activities in 2020 is higher than in 2021, but the cost of provisions for credit risks is very large, so the total profit before tax in 2020 is obtained by the bank. It is also not large, only reaching 2,511 million VND, which is 211 million VND larger than 2021. On the contrary, although in 2021 the net profit from business activities that Lang Ha Branch earns is lower, the risk provision expenses that the Bank has to spend are very small, so in 2021 TPBank - Lang Ha

in place reasonable and appropriate policies to operate more effectively.

<b>1.3.1. Purpose of practice </b>

Tien Phong Commercial Joint Stock Bank (TPBank) is one of the leading financial intermediaries in Vietnam. After learning about Tien Phong Commercial Joint Stock Bank (TPBank) - Lang Ha Branch, we decided to choose this as the place where we would practice to hone our skills and experience for the future. future later. Besides, my group can orient their career after graduating from Academy of Finance. The goals that the group is trying to accomplish are as follows:

1. Understanding the organizational structure and working environment of a leading bank in Vietnam

2. Learning the style and working style of employees in a particular business 3. Create many relationships and learn a lot from those relationships. 4. Apply knowledge and skills learned at school to assigned tasks 5. Complete well and on time all assigned tasks.

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<b>Component </b>

Component

<b>2.3.2.3. Pearson's correlation test </b>

Pearson correlation test is a prerequisite step for multivariable regression analysis. The purpose of the Pearson correlation is to test the linear relationship between the dependent variable and the independent variables. Multicollinearity problem when the independent variables are also strongly correlated with each other. Based on the Sig value, the correlation between the independent seas is less than 0.05 and the Pearson correlation value is greater than 0.3, creating a suspicious sign of multicollinearity.

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