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TOPIC: Board of Directors of Bank for Investment and Development of
Vietnam (BIDV) requires you as an officer in charge (the highest level) of the
application of information technology in business to make a plan of
development of information system to enhance business and management
efficiency in the five-year period from 2012 to 2016 and vision to 2020.
Prepare a report based on following contents to submit it to Board of
Directors for approving funding, personnel, deployment time and suggest
specific targets.
The basic content of the report:
1. Introducing the enterprise
2. Analyzing the situation
3. Analyzing SWOT (related to IT, information system, e-commerce)
4. Comparing with three competitors in the industry
5. Learning solutions of IT application in the banking sector.

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CONTENT

1.

INTRODUCING

ABOUT

BANK

FOR

INVESTMENT

AND

DEVELOPMENT OF VIETNAM. (BIDV)
Bank for Investment and Development of Vietnam (BIDV) was
established in April 26, 1957 under Decree of the Prime Minister.
Bank for Investment and Development of Vietnam is a special state-owned
enterprise, organized in the form of a systematic State-Owned Corporation with
more than 112 branches and subsidiaries around the country with partnership
with foreign companies. The focus or traditional activity of the Bank for
Investment and Development of Vietnam is the investment for the development
and implementation of key economic development programs of the country.
When Vietnam joined WTO in 2007, there were many foreign banks
to invest in the Vietnamese market, which is an opportunity and great challenge
for the domestic banks. Therefore, to become a strong financial group, BIDV
has been constantly changing in all aspects such as: Human Resources,
Information System, Communications, advanced and modern equipment,
Information System, and e-commerce and its products and services. BIDV has
also constantly innovated, developed and improved products and services in
line with the market targeting at competing with other domestic and foreign
banks.
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As a result, BIDV has been always the leading one of index of
availability for application and development of Information Technology
(Vietnam ICT Index) in for the years 2007, 2008, 2009 and 2010 as evaluated
and raked by Vietnam Association for Information Processing. The Bank has
demonstrated a leading position on the application and development of ICT in
banking activities.

2 ANALYZING SITUATION.
With the goal of becoming a leading financial group in Vietnam and
reaching out to the international market, the Bank for Investment and
Development of Vietnam (BIDV) has always prepared the best premise of
information technology to serve business and banking management in the
model of a modern bank to provide optimal utilities to customers and partners.
BIDV has provided customers with many products and obtained very
good results of charge service such as BSMS- service of balance message to
customer account, service of payment for telephone bills, service of
Directbanking- account balance inquiry on the internet, etc. BIDV has also
implemented and replaced software in order to improve the quality of services
such as:
New 2012 BSMS replaces the old program. New BSMS software is built
by the technology center to replace the old software from 2006.
The software is designed to meet the requirements of the number of
customers up to 5 million people.
New BSMS system has been piloted since September 2012 and applied in
the whole system of BIDV in Oct 2012. As of Nov 12 th 2012, the whole system

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has 957,000 customers (up 49,000 customers from Sept 30 th 2012) and 1
million customers as expected in Dec 12th.
Total charge of services by Nov 30th 2012 was 60.7 billion dong. Net
service charge was 46.4 billion dong (up 2.4 billion from Oct 31st 2012).
Directbanking service of balance inquiry has been improved and replaced
by internet banking service. Addition to balance inquiry, customers can transfer
money in and out of the banking system and many common features will be

provided to customers anywhere with internet or 3G. This is the most superior
service in order to compete with other banks which have been deploying this
service.
3. ANALYZING SWOT (related to IT, information systems and ecommerce).

 Strengths of BIDV

On April 23rd 2011, VICTA 2010 Vietnam Information Technology –
Communications Award Ceremony (ICT) held by Ministry of Information and
Communications in collaboration with the Vietnam Chamber of Commerce and
Industry (VCCI). Bank for Investment and Development of Vietnam was
granted with the title “The best business of application of Information
Technology” in the field of Information Technology (the award including Cup
and awarding and recognition decision).
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The Bank has demonstrated a leading position on the application and
development of ICT in banking activities. This is also an opportunity for the
Bank to promote the image and brand of BIDV. It is also recognition of the
Bank's achievements in the development and application of ICT in banking
activities.

 Limitations
It is the human element. Capacity and qualification of the information
technology staff is still limited. Although unqualified ones have been dismissed
and young staffs who have been trained inside or outside the country have been
invested, quality of the Bank’s staffs is still limited compared with ones of
foreign banks which have just penetrated the Vietnamese market with
professionally trained staffs, modern and advanced machinery and equipment

systems such as Techcombank, etc and Vietnam’s big banks with significant
advance in information technology such as Vietnam Bank for Industry and
Trade.

 Opportunities and challenges of BIDV.
BIDV was awarded “The best business of application of Information
Technology in 2010” by the Ministry of Information and Communications
(May 16th 2011)
On Nov 15th 2012, in Hanoi, Joint Stock Commercial Bank for Investment
and Development of Vietnam and Oracle Corporation signed a memorandum of
strategic cooperation. Memorandum aims at promoting and developing a
strategic cooperation in optimizing the use and deployment of new products of
Oracle Corporation in the information technology system of BIDV. With this
memorandum, Oracle shares the experience in the transformation of
information technology system and training technology professionals for BIDV.
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This is both an opportunity and a challenge for BIDV with a limited
qualification and capacity of technology staff in access to software of
information technology application. Therefore, any software will be purchased
and develop by itself. Currently, Technology Board is managing and deploying
many major and significant IT project of BIDV such as Upgrade of SIBS,
Development of Management Information System (MIS), hiring CRM and
Contract Center building consultant, etc, participation in performing projects
such as Master Card system connection, Master Card building, hiring
consultants for building cost allocation system, modernizing BSC Company,
building Financial Management and Leasing System, etc.
After 05 years of operation, the Technology Board has contributed to
taking the Bank's IT operations to a new phase with the recognition of

achievement in information technology application of staffs in the industry,
recognition of management and development model of BIDV.
4. COMPARING WITH COMPETITORS.
There are more and more various foreign banks investing in Vietnam and
domestic banks, which makes the competition environment fiercer. However,
with 55 years of experience in investment and development, BIDV is growing
constantly over new banks with capacity but limited experience. These are
favorable conditions for BIDV.
The most striking results of BIDV after overcoming 14 enterprises in the
final round and more than 100 companies participating in the award in the field
of IT applications (14 businesses in the final round including Vietnam Bank for
Industry and Trade, Vietnam Technological And Commercial Joint Stock Bank).
BIDV Insurance Corporation is also one of banks in the final round.

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5. LEARNING THE INFORMATION TECHNOLOGY SOLUTIONS
APPLICATIONS IN BANKING.
There are many reasons for limited development of the field of ecommerce in banking. Cash is still used in most payment transactions in the
residential areas; transaction with banks is still strange to them; they are afraid
of service and risks. Those prevent the access of people to new form of
payment.
Therefore, a target set out is the optimal deployment of technology
infrastructure, diversification of banking services with the aim of supporting
the banks to improve competitiveness, taking advantages personnel effectively,
simplification of administrative procedures, changes in business methods and
enhancement of the quality of services, extension of modern electronic
communication channel between customers and banks such as ATM. POS,
INTERNET BANKING, MOBI BANKING, etc.

6. Planning to build information system to enhance business and
management efficiency in the five-year period from 2012 to 2016 and
vision to 2020.
Prepare a report based on following contents to submit it to Board of
Directors for approving funding, personnel, deployment time and suggest
specific targets.
INTERNET BANKING MOBILE BANKING (IBMB) PROJECT
Staff: 15 people
Funding: Funded by World Bank
Duration: 2 years
Deployment: from Central Bank to the banks of the provinces and
districts.
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Starting from 2012
ABOUT THE PROJECT:

Internet Banking & Mobile Banking (IBMB) is deployed by the Bank for
Investment and Development of Vietnam within the framework of the Project
of Bank and Payment System Modernization at Phase 2 sponsored by the
World Bank. Partner providing the solution of Internet Banking and Mobile
Banking to BIDV is Polaris Company in India, one of the leading companies in
the world of banking software and insurance (as assessed by the reputable IT
researching and consulting organizations in the world, such as Gartner and
Forrester)
Internet Banking and Mobile Banking (IBMB) provides a system of
distribution channels to help customers directly register and use the banking
service via Internet or mobile phone without having to go to the bank. At BIDV,
the system is divided into three main components:

- Internet Banking System for individual customers (BIDV Online for
individual customers or Retail Portal)
- Internet Banking system for enterprise customers (BIDV Online for
enterprise customers or Corporate Portal)
- Mobile Banking (BIDV Mobile) includes applications of BIDV Mobile
and SMS Banking. This component is mainly used for the individual
customers.
Outstanding features of the IBMB system
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If BIDV Directbanking service as well as Internet Banking service of
other banks allow customers to query only account information, BIDV Online
service allows customers not only to query information but also perform
domestic money transfer, international money transfer, bill payment, credit card
payment and sending service requests to the Bank.
Especially, for the domestic money transfer to the accounts of payees
outside BIDV system, the money transfer order will be automatically
distributed and transferred to the beneficiary banks. Accordingly, the teller at
the branch will not take any action, and the money orders will be distributed
logically as installed in Bank Online system to beneficiary banks after
accounting at SIBS and by one of three applied channels (by priority order):
bilateral channel, interbank channel and clearing channel. Therefore, the money
order will be done at a higher speed automatically. This is a preeminent of
BIDV Online in comparison with other banks in the market (often only one
payment and money transfer channel on Internet Banking with transfer receipt
service on Internet for manual processing of transactions).
IBMB system of BIDV also applies the standard security technologies for
financial transactions on the Internet, including the connection security with
https connection protocol, information encoding on transmission line of Secure

Sockets Layer (SSL), 2 factor authentication for users: Hardware Token or
SMS OTP security device (one-time password message via mobile phone).
The functions will continue to be deployed in the near future: Inquiry of
information relating to credit card such as balance, unstated transaction,
statement inquiry, the most recent transactions, etc (At SMS Banking and
applications); Automatic message (alert); Registration of Mobile services via
ATM, Internet Banking.

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With the deployment of Internet Banking Mobile Banking, BIDV expects
to become one of banks providing online banking services with the full and
most complete features in the Vietnamese market.
6. CONCLUSION:
In the field of Banking field, activities are associated with the receipt and
processing of information, so the application of information technology plays
an important role in sustainable and highly effective development of the
banking sector. Products are equipped with leading security solutions in the
market as well as assurance and careful test processes of information security in
order to build trust with customers and make them feel secured while getting
the bank's products and services to make the BIDV baking system more and
more completed and continuously developed on all aspects and one of leading
financial groups in Vietnam as well as in the world market.

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7. REFERENCE
- The Technology Board of Bank for Investment and Development of

Vietnam.
- Book of Information System Management -Teacher - Doctor: Nguyen
Van Thoan

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