Xây dựng kế hoạch ứng dụng thương mại điện tử thông qua hệ thống e banking trong ngân hàng thương mại cổ phần VPBank e

BUILDING PLANS E-COMMERCE APPLICATIONVIA E-BANKING
SYSTEM IN VPBANK

Content

I.
Introduce about VPBank
1. Formation history and development

VPBank, was established on August, 12th, 1993 So far, after more than 20 years of
construction and development, VPBank has become one of the top 12 banks in
Vietnam (G12) network spanning 33 provinces, more than 200 transactions, 550
payment Western Union agents across the country. Starting with chartered capital of
VND 20 billion and 18 staffs, with the constant development efforts, to 2013, VP
Bank's charter capital of nearly 5,770 billion 5.000 staff. The name Vietnam Prosperity
Bank official VPBank used in 2010. Name of bank expressed the desire to contribute,
jointly built a Vietnam prosperity to life of every body is becoming increasingly better.
2. Strategic business objectives

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Leader of bank has given a strategic vision, becoming one of five banks Trade shares
top and và one of three retail commercial banks in Vietnam in 2019.
With that vision VPBank has been focused on building and consolidating a solid
foundation to ensure a rapid growth, but stable and sustainable for the next year by
focusing on the following areas:
-

Develop a structured business development and dynamic flexibility to focus on

-

individual customer segments, SMEs and large enterprises.
Develop and implement alternative channel strategy, including channel integrated
contact (Alpha), channel banks at work (Beta) and channel coordination with
distributors (Gamma). These channels tightly integrated with each other and with

II.

the system of VP Bank branch in the stage of sales and customer care
IT Development investment is one of the pillars, platforms, tools for business
development.
Building, human development platform, the core of sustainable development
Role of e-banking and e-commerce applications in VPBank
1. The concept of e-commerce and other type of e-commerce
a) The concept of e-commerce
Trade in the broadest sense is defined in the Model Law on e-commerce of the
United Nations Commission on International Trade Law (UNCITRAL) as: “Trade
terms should be interpreted in a broad sense to cover matters arising from all
relationships of a commercial nature carry with or without a contract. The
commercial relations include the following transactions: transactions of any offer
or exchange of goods or services, distribution agreements, representations or
commercial agent, fiduciary commissions; long-term lease, construction works,
consultancy, engineering, investment, finance, banking, insurance, exploitation
agreement or concession; venture other forms of industrial cooperation or
business, or passengers by sea, air, rail or road”.
One can succinctly defines e-commerce as a way to understand common form of
buying and selling goods and services via a global computer network Internet. In
fact, the commercial activity over the Internet gave rise to the term e-commerce, ecommerce abbreviation. E-commerce consists of the buying and selling activities of
goods and services through electronic means, delivery of digital content on the

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Internet, electronic transfers, electronic share trading, electronic bills of lading,
commercial auctions , collaborative design, network resources, public procurement.
b) Type of e-commerce

Based on the subject of e-commerce, can e-commerce division of the common
types are as follows:
 Transactions between business to business – B2B (business to business);
 Transactions between business to consumer – B2C (business to consumer);
 Transactions between business to government – B2G (business to

government);
 Direct transactions between consumer to consumer – C2C (consumer to
consumer);
 Transactions between government to consumer – G2C (government to
-

consumer).
B2B is type of transaction through electronic means between enterprises and
businesses. According to the United Nations Organization for Cooperation and
Economic Development (UNCTAD), e-commerce B2B e-commerce accounting for
a large proportion (approximately 90%). B2B transactions primarily done on the
application of e-commerce systems as value-added network (VAN); supply chain of
goods and services (SCM), e-commerce exchanges ... The business can offer,
looking for customers, ordering, contracting, payments through this system. At a
high level, these transactions can take place automatically. B2B e-commerce bring
real benefits for businesses, particularly to help reduce the cost of information
collection and market research, advertising, marketing, negotiating, increase

-

business opportunities,…
B2C is type of transaction through between businesses and consumers through
electronic means. Business use of electronic media to sell goods or services to
consumers. Consumers through electronic media to choose from, bargaining,
ordering, payment and delivery. B2C transactions but little proportion
(approximately 10 % ) in the EC but the wide range of influences . To participate in
this form of business, conventional business website will be set up, forming a
database of goods and services, conducting marketing process, advertising, direct
distribution to consumers. B2C e-commerce benefits for both businesses and
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consumers. Businesses save costs by not selling or leasing needs showroom sales
referrals reduce management costs and more. Consumers will enjoy the
convenience of not having to take shop, have the ability to select and compare
-

many items at once.
B2G is type of transaction through business with state agencies, including state
agencies act as clients. The process of exchanging information between enterprises
and government agencies are conducted through electronic means. State agencies
can also set up the website in that post information about purchasing needs of state
agencies, conducted the bidding of goods, services and supplier selection on the
website. This is a face saving costs find suppliers, and enhance transparency in

-

public procurement activities.
C2C is type of transaction through individuals together. The development of
electronic media makes many individuals can participate in commercial activities as
suppliers, who provide services. An individual can set up the website for items of
business for which they act out or use a website available to bid on some items I

-

have. C2C contribute to the diversity of market.
G2C is type of transaction through between state agencies to individuals. These
transactions are mainly administrative nature, but can bring elements of ecommerce. For example, when people pay taxes online, pay the registration fee

-

online profile, v.v…
2. Role of e-banking in competition of Commercial banks today
Electronic Banking exploit the strengths of IT and telecommunications applications
to create new modes of communication between the Bank and the customer,
complement traditional methods of communication networks based on branch and a
transaction. The more society develops, the more information technology penetrates
into the lives needs to use e-banking services are higher. E-Banking is one of the
key factors leading to the diversification of utility services and banking products
comply with modern style, contribute to improving the competitiveness of

-

commercial banks in today's era
The products and services the bank does not depend on space and time, through
electronic channels and internet access device such as a computer terminal, ATM,

-

POS, desk phone, cell phone action… (dịch vụ e–banking).
E-banking service meeting the financial needs of customers almost immediately.
Since the payment of the monthly bills for electricity, telephone ... until the
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procurement of goods through electronic payment gateway, purchase airline tickets,
hotel reservations ... Just a smart phone or a computer computer with a network
connection, via a few clicks of the consumers needs are met quickly. The right to
-

direct transactions at branches is minimized.
Consumers can also send savings and loan online without having to make room
deals to be served. Or when there is the need to use cash, cash ..., the user can be

-

done easily and quickly without the presence of the ATM card.
Can say it is a revolution for the use of banking services tại Vietnam. In addition,
the number people used internet in Vietnam continues to increase, not to mention,
the manipulation via e-banking transactions quite simple, which saves cost, time

-

and bank customer.
In the fiercely competitive environment like the current technological factors are
the leading bank set up to make a difference and the highest increase in utility for
its customers. In fact, for real technological superiority and is bringing many

modern conveniences to consumers, the banks are not always able to meet. The
difficulty here is that need a very larger financial resources sustained, friendly staff
and experienced battle to bring applications into practical technology, bringing real

-

benefits to consumers.
Building modern technology basis platform to develop advanced banking services
such as e-banking is a sustainable development strategy of the bank. For
international banks in the region and around the world have strong capital strength
and reputation of the ordinary high profits from the operation of the banking
services accounted for approximately 40% -50 % of total income. Vietnam banks in
strategic restructuring activities, inevitably more investment in the service sector to
keep up this trend.
3. Current status about e-commerce applications in VPBank
a) Status of e-banking application at VPBank
Current application E_banking in bank has been promoted in the past year,
however the application, the investment has not been invested clear roadmap to
bring efficiency in operations, in particular the limitations of the Bank of
E_banking as follows:
 About technology infrastructure

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-

Technology infrastructure still not equipped synchronous, unused advanced

-

technology to meet large numbers served (majority problem)
Discrete programs, no high coherence between modules, the module
The program is largely self-development banks (in house development) so
very limited in functionality and there are many problems arising in the

-

course of operating activists
The complex operation management, property not ready high
Security is still not yet satisfied customer.
The system does not support diverse platforms especially onset of intelligent

-

mobile devices on the platform iOS, Android, windows …
There is no clear roadmap development, technology development unsold

closely with business development strategies of bank
 About functions, products and services
- Not yet diversify both products and services for individual customers and
businesses (cash management, payment of wages, debt collection,
-

commercial payment …)
Not yet flexibility in use, how to use complex, difficult to manipulate

-

customers

Not yet promotion is maximum value that gives E_banking business as ecommerce …
The current system met the issue, the error leads to customer dissatisfaction

about service quality
b) SWOT analysis about E_bankingapplication at VPBank
Strengths:
Weakness:
With the support and commitment Lack of
from senior management on the
development
-

of

applications

of

-

picture

of

Technology strategy development
Using self-developed products,
so many errors arise, not high

information technology banking
Platform IT personnel understand the

business problem is very high, human

overall

-

quality services
Knowledge of

IT

humam

resource is limited

resources had over time developed
the open source application should be

very experienced in IT management
Opportunities:
Threat:
There has been a clear business The
strategy from the board, which is the
basis for investment in development
6

-

fierce

competition

from

rivals in the same industry
Customers
increasingly

use


-

of information technology systems
The technology platform to develop -

technology requires high
The value that is proved in a

existing

short time is not easy
The risk of information leakage

Internet_banking

very

-

diverse and abundant
Increased cross-selling opportunities

-

between business partners online
To develop and retain customers in

-

customers is high

the bank
III.

Building planning e-banking and e-commerce in VPBank
1. The requirements of e-banking system
a) Requirements for system architecture

- Supports multi-channel transaction platform based on SOA, towards developing ecommerce
- Allow VPBank develop, customize new features
- Meet current security standards
- Developing a synchronous manner to meet business needs
- Supports multiple platforms on terminal (iOS, Android, windows media…)
- Architecture connection required, easy integration
The model proposed architecture overview:

b) Requirements for products and services

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General requirements about products and services is diversification, support ecommerce development and business strategy of the Bank. The following
products are required and not required

2. Solution Selection

The requirements of business strategy basis of the Bank and architectural
requirements of the technology, the project team for analysis of the technology
platform for the development of e-banking is the major partner Oracle, IBM,
Microsoft, Here are 3 partners providing leading technology platform for
organizations to develop information technology solutions in general including
e-banking solutions.
Technology platform that enables enterprises and build customized solutions
according to the business strategy of their own. With applications e-banking
Oracle, IBM, Microsoft firm is not writing specific solutions they build out the
framework for the partnership as well as businesses can develop, customize
according to business problems of your business.
As noted above, the bank has set a business strategy above, from which to build
e-banking solutions to meet the business problem we focus our analysis,
compare the following factors
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-

System Architecture
Openness to the development of new products and services in future
Ability to operate after administration put into the operation system
Compatibility, system integration, connecting to partners …

Cost of initial investments as operating costs for next year
….

The research
criteria

Oracle

IBM

We can say right, this is
a

leading

technology

company providing the
technology platform for
the

development

of

information technology
applications, but here we
Architecture

see Oracle has been

system

providing

strong

IBMis

Microsoft
also

technology, with names huge
technology

platform technology

for the development of companies,
e-banking solutions to Microsoft

modern
oriented

oriented

architecture reaction

SOA services

development is one

Oracle, IBM ... So
product

to

development
platform

service

for

e-

banking which team

architecture

is also completing
full meet

to

the

The

development

businesses to develop

platform

allows

of

new customized products and

products

and services to serve their

services

in business problems

future
Ability

to -

operate

and

of the competitors of

(SOA)
Openness

also

technology developing a similar

e-banking.

Technology

is

modern

partner organizations to
solutions

computing

of the world's leading company, all other

technology platform for
develop

big Microsoft is also a

after

To

day,

technology

Openness to meet the Openness to meet
customization

products and services products
fully meet

Oracle IBM's
is

of the customization of
services fully meet

technology Microsoft

a platform is considered technology
9

and

is


modern
popular
thus

technology

serves

human

resources to operate,
develop it easy to find
put the system

this factor is quite

into operation

favorable

for

businesses

choosing

technology, popular technology

high stability however globally, taking very
the popularity of the high
Vietnam

market

popularity,

for however

when

products used for the deploying
development

of

large

e- numbers of systems

banking is not so much serving less stable
popular

human

this technology.
resources finding no
- Oracle's technology
more difficult than other
platform is stable high
technologies
Oracle using serviceoriented

Compatibility,
system

SOA and Services Bus,

High popularity, has

which is the technology Interoperability,

the ability to connect

that

all

of

information

integration,
connecting

architecture

to

partners …

between

the connected

the easily

to

exchange system through flexible partners

systems

converted

to

into

exchanged

and technological

transactions
of

ewhen

other used in building the

with each other over a partners

programs

common

banking

so

in

be partner ... with the commerce

messages equivalent
bus

other

to

like

e-

clarify routing and Ken
Initial

connector
- Cost
of

investment
costs as well as

-

license is expensive
Labor
costs
is
cheaper

operating costs

software -

due

commonality

for next year
-

The

software We can say with

copyright

cost

is Microsoft

expensive because technologies

to

and

it is one of the universal technology

of

human resources
Hardware
costs
comparable to other
partners

modern technology so the cost items are
Development costs
cheaper than other
are quite expensive,
comparable firms
due to its popularity
in Vietnam not so

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-

Expenses

for

low

popular

annual operating

mainly

human resources to
-

hire from abroad
Cost of hardware
similar

to

the

technology used by
-

the other partner
Annual operating
costs is high, due to
non-proliferation of
human resources

On the basis of comparative research on technology's major partners serving

technology e-banking platform deployment above criteria to meet strategic business
and ecommerce proposals selected group of Oracle technologies to deploy. Calculated
on the basis of cost and deployment as the table below:
 Cost
Date
of
labor

#

Items

A

Initial Investment
Hardware costs (Servers, storage)

$640,058
$92,000

Base cost
Portal License
Service Bus License
Authentication License
Database License
Deployment &development date of 820
labor
Annual maintenance costs
Server & Infras maintenance & support
Software

license
(maintenance&
support)

$548,058

I

II

III
B
1
2

Contingency (15%)
Total Cost

Total price

$67,573
$23,000
$44,573
$96,009
$736,067

 Implementation plan
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Note

The security appliance,
router routing system,
transmission line, using
the available platform

The first maintenance
costs is free, from the
2nd year will take
charge
Not excluding VAT


IV.

Planning e-commerce activities on e-banking platform after deployment
1. Goals
- To promote e-commerce activities via online payment channels.
Strengthening links, connections to trading partners such as supermarkets,
-

restaurants, nationwide
Taking online payment channels as e-banking, ATM, POS … The main

-

subject of the trade settlement between the parties
With the bank's services, expand direct sales channels, mobile channels

instead of the traditional.

2. The deployment activities
a) Expand direct sales channels via electronic banking services
- Promote the individual customers development use to the ATM card
products, InternetBanking ... here is the premise for the development of ecommerce with individual customers and businesses. This product is the
-

usual banking services are provided in electronic banking platform
Open the promotions, to encourage customers to use these products online as

online consumer loans, online savings …
b) Development on the channel connect with partners
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-

Budget collection channel, as collecting taxes, charges, fees and other
revenues on Budget for customers filed into the State Treasury, Department

-

of Taxation.
Links and integrates consumers through social networking sites is a trend (in
Vietnam, however there is no clear legal framework for the use of social
networking but this is a trend Bank of the future should be available for the

-

foreseeable future)
The paid channels electricity, water, telephone charges paid …

Channel connections to the securities company
Develop channel connect to partners payment as supermarkets, restaurants as
BaoKim, Nganluong, OnePay, Payoo … To promote online transactions

References:
1. Text book: Management Imformation System
2. Strategic Management and Information Technology – John Wiley& Sons, Inc.

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