Phân tích và đánh giá thực trạng ứng dụng công nghệ thông tin tại ngân hàng BIDV e

PHÂN TÍCH VÀ ĐÁNH GIÁ THỰC TRẠNG ỨNG DỤNG CÔNG NGHỆ
THÔNG TIN TẠI NGÂN HÀNG BIDV

Contents:
Tables of contents
Forewords ...................................................................................................................................................... 3
1. Introduction of the Bank........................................................................................................ 3
2. Current state of information technology application in BIDV....................... 4
2.1 Information technology application................................................................................ 4
2.2 E-commerce application......................................................................................................... 5
3. Some SWOT analysis.............................................................................................................. 7
4. Comparison with competitors............................................................................................. 8
5. Analysis of experience from other banks.................................................................... 9
6. Studying information technology solutions applied in banking industry 9
7. Strategy for Information technology application to 2012, 2020................... 10
7.1 Business strategy and vision of BIDV to 2012-2020.......................................... 10
7.2 Strategy for information technology and e-commerce application

to

2020

......................................................................................................................................................

10
8. Action plan and specific targets........................................................................................ 10
8.1 Integration of application programs for internal management...................... 10
8.2 Enhancing information technology and e-commerce application................ 11

Human resource anticipation.............................................................................................................. 12
8.3 Budgeting........................................................................................................................................ 12

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8.4 Time schedule............................................................................................................................... 13

8.6 Some targets to 2020................................................................................................................ 13
Conclusions .................................................................................................................................................. 14
References...................................................................................................................................................... 14

Foreword.
In recent decades, we have seen a very fast development of information technology and
it spreads to all social and economic fields. In business and management activities,
information technology application become an indispensable demand of any company.
Especially in banking industry, the application of information technology is an
compulsory requirement.
In order to prepare for the enhancement of information technology application in
business and management activities and to put the resolution of the Board of
Management of the Joint Stock Commercial Bank for Investment and Development of
Vietnam on information technology application, I, as a Senior Officer in charge of
Information technology application, will make the “Report of current state of
Information technology application and Plan for information technology application in
management and business activities” to improve efficiency of business and management
activities in the period of 5 years from 2012 to 2016 and vision to 2020. The Report is
prepared with the following contents.
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1. Introduction of the Bank.
- Full name: Joint Stock Commercial Bank for Investment and Development of
Vietnam (BIDV).

- Address: BIDV Tower, 35 Hang Voi, Hoan Kiem, Ha Noi.
- Telephone: 04.2220.5544 Fax: 04. 2220.0399
- Website: Email:
- Joint Stock Commercial Bank for Investment and Development of Vietnam was
founded on 26/4/1957, a first commercial bank in Vietnam. Now, BIDV is one of the
three largest commercial banks in assets, with over 500 branches and sub units, nationwide ATM/POS network and total employees of over 16.000.
- Key businesses: BIDV is doing in 4 key businesses: Banking, Insurance, Securities,
and Financial investment.
- Customers:
+ Enterprise customers: BIDV has the largest enterprise customers in Vietnam including
Business Groups, large companies, and small and medium companies. Individual
customers: over 3 million customers.
+ Financial institutions: BIDV provides service for such institutions as World Bank,
ADB, JBIC, NIB…
- Information technology application: BIDV keeps continuous application and
innovation of technology for management activities and for development of advanced
banking services. Since 2005 BIDV steadily hold leading rank in Vietnam ICT Index
listed in the TOP 10 CIO of Indochina region in 2009, of South East Asia in 2010.
2. Current state of information technology application in BIDV.
2.1 Information technology application.
Currently, information technology is strongly and intensively applied in the bank. BIDV
has built up a steady information technology platform for its business and management
activities:
- Information technology infrastructure: Data Center, AS 400 servers, Data Storage,
communication network, computer network systems and other related IT equipments are
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already built up and every year, BIDV conducts the IT state assessment, needs for the
period, and plan for appropriate additional supply.

- Information technology personnel: Technology Department and Center of Information
technology were formed to be in charge of information technology application in the
bank.
- The employee’s skills for utilization of IT technology and IT application programs: all
the employees are trained:
+ To utilize IT programs specifically designed for banking activities, like: Branch
Delivery System, Bank Cards, Interbank Payment Program, Foreign Currency Trading…
+ To master office applications, email, internet… and rules and regulations for
information security practice.
- Information technology application programs and information systems: BIDV has
successfully developed and implemented some integrated information system and other
stand-alone applications, such as:
+ The core banking system - SIBS of Silverlake (Silverlake Integrated Banking System).
This system computerizes and put all the banking sale activities and transactions online
as well as automate the transaction and accounting processing.
+ Electronic payment system: connected to the State Bank ò Vietnam, other domestic
and international financial institution… to satisfy all domestic and foreign payment
needs.
+ Internal management system: the collection of applications and modules of internal
accounting, human resource management, assets management, daily business result
report for management…
+ Internal documents and records management application.
+ Internal Credit ranking system.
+ Customer efficiency assessment and classification program.
+ Online customer information verification system: verifying enterprise’s seal, signature,
information and authorities of customer on internal web.
+ BIDV internal web portal.
+ Mobile Banking system: applications for banking transactions on mobile phones.
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+ BIDV website: the site is for introduction of bank information, introduction and
advertisement of bank’s products and services. Moreover, it is integrated with BIDVonline – electronic banking system, which supports enterprise and individual customers
carry out their banking transactions on internet.
2.2 E-commerce application: currently, two typical e-commerce systems of BIDV are
Mobile banking and Internet Banking.
- Mobile banking system provide services like: money transfer, bill payment, inquiry of
bank’s product and services as well as customers’ transactions, sales of deposit products,
issuance of debit cards, customer’s guide and support… through mobile phones of
Viettel, Mobiphone, Vinaphone mobile network.
- Internet Banking system: integrated into the Web of BIDV: .
BIDV Online application provide advertisements and sales of services: bill payment,
money transfer (internal and interbank transfer), bank card issuance, fixed deposits,
information and history of accounts (current account, fixed deposit account, loans
account), customer’s feedback and support.…Some figures of BIDV website are as
below:

Figure 1 – Website BIDV.

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Figure 2 – BIDV Online

3. Some SWOT analysis.
STRENGTHS

WEAKNESSES

- Domestic and international strong and

prestigious trade name.
Qualified,
experienced
and
enthusiastic human resource.
- Modern and synchronous information
system. Advanced IT application
programs. Qualified in mastering and
application of information technology.
- Creative in providing competitive
banking product and services.
- Experienced and strongly oriented in
e-commerce development.

- Internal mechanism for decision
making and implementation on
information technology and its
application for e-commerce is not fast
and flexible.
- Not perfect internal management
information system. The ability of
information technology application and
utilization is not intensive.
- The brand name advantages is not
utilized, the ability to attract potential
customers is not good as required,
which limit the quantity of customers
to use e-commerce.
- The capability in risk management í
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not good enough to meet security
requirements in e-commerce.

OPPOTUNITIES

THREATS

- Potential market for banking business

- Fierce competition from domestic and
international competitor.
- Customers’ requirements for product
and service quality are getting higher.
- Frauds in banking activities are
increasing.
New
risks
appears,
especially in new banking activities like
e-banking.
- Standards for risk management,
information security in e-commerce
requirements are higher and higher.

is still large, the needs for banking
products and services are rising and
diversified.
- More and more customers have

knowledge and are aware of using
banking services, especially products
and

services

provided

on

high

technology platform.
- The Government issued policies that
support
the
application
and
development
of
information
technology and e-commerce.

4. Comparison with competitors.
In well-known banks in Vietnam, Joint-stock commercial bank for foreign trade of
Vietnam (Vietcombank) and Vietnam Technological and Commercial Joint- stock Bank
(Techcombank) are two financial institutions who have soon and strong application of
information technology. The level of information technology application is clearly
represented by their websites with their application programs and the added values the
sites bring to their customers. Some assessments and comparisons are as below:

Joint-stock commercial bank for foreign trade of Vietnam– Vietcombank
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Vietnam Technological and Commercial Joint- stock Bank – Techcombank

In general, the Banks have good and friendly website interface and similar functions:
providing product and service information, introduction and advertisement. Online
banking functions are also integrated to support customers’ online transactions and as
well as the banks themselves to sell products and services… The websites all have
interactive communication with users through email, questions/answers functions
integrated into the sites. After assessment of the websites, it is clear that the application
of information technology in management and business activities of the banks are all at
high level and there is not much difference between them.
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5. Analysis of experience from other banks.
Application of information technology will bring great advantages to a bank, but it also
bring potential risks: customer’s information stolen, fake bank cards, internet banking
transactions faked, user name and password of bank’s staff and supervisor stolen and
used for bad purposes …
In the past few years, there had been lots of frauds on VISA cards of Vietcombank,
Techcombank. The situation that customers’ information stolen to make fake cards to
withdraw money or buy goods through internet causing financial damages to customers
is still a fact. And there also exist the risks and facts that bank staffs steal user name and
password of other staff and supervisor to carry out fraud transactions, causing financial
damages to the bank and its customers.
To overcome the situations, BIDV and other banks have been applying serial security
measures to improve safety in banking transaction: verifying customer and transaction

by personal identification number, password and token; automatically report banking
transactions to customers through mobile phone messages for their control; developing
security system to prevent customers’ information steal…
6. Studying information technology solutions applied in banking industry.
Information technology application solutions are now strongly oriented to the
development of integrated application system, ensuring security and supporting nontraditional transactions such as internet banking, mobile banking.
Currently, legal legislation platform is fairly sufficient, banks need to choose their
solutions and prepare for implementation so that they fit well to their scale, specific
characteristics, strategy and vision. Some solutions currently chosen by banks are:
building up international standard information and transaction security; developing and
continuous upgrading internet and mobile-platform banking transaction applications;
setting up internal risk management system, setting up internal system for management
activities.
Beside the development and implementation of information technology solutions,
training activities for personnel in charge of information technology system operation
and management, for staffs in all new IT applied fields should be carried out
simultaneously. Furthermore, customers’ guide, support and communication should be
enhanced to improve their capability in utilizing the applications’ functions so that the
customers will receive more and more added values. This will increase the efficiency of
intensive market expansion.
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7. Strategy for Information technology application to 2012, 2020
7.1 Business strategy and vision of BIDV to 2012-2020.
Business strategic orientation to 2020 of BIDV is to be one of the three most effective
and largest banks in Vietnam in every aspects: presence in all provinces/city nationwide,
number of customers, business efficiency, list and quality of products and services,
capability in innovation and application of information technology and e-commerce.
7.2 Strategy for information technology and e-commerce application to 2020.

Based on the Business strategic orientation and vision of BIDV to 2020, application of
information technology and e-commerce is a key matter and basis for the bank to meet
the goal. The two main strategic contents acre as below:
- Systemizing and upgrading all internal management programs to make them integrated
and run on internal web platform (all applications like financial accounting, human
resource management, assets management, training, document and records management,
planning, automated office …). Improving risk management, information and
transaction security system when enhancing the implementation of information
technology and e-commerce.
- Enhancing the implementation of information technology and e-commerce to improve
the capability of attracting customers, quality of products and services, and business
effectiveness:
+ Intensive implementation of internet and mobile platform applications for banking
transactions (internet banking, mobile banking).
+ Promoting bank card transactions, setting up ATM, Autobank network.
+ Developing integrated customer relationship management.
8. Action plan and specific targets.
8.1 Integration of application programs for internal management:
Upgrading, integrating and changing operation platform to internal web for the
following applications:
- Internal management system: the collection of applications and modules of internal
accounting, human resource management, assets management, daily business result
report for management, internal documents and records management.
- Internal Credit ranking system: upgrading, developing a module for individual
customer ranking.

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- Upgrading customer efficiency assessment and classification program. Developing

integrated customer relationship management.
- Developing integrated customers records management, connecting it to involved
modules of core banking SIBS (modules of Customer information files, Loan, Trade
Finance, Deposits…)
- Developing the Income-Expense Allocation program to manage, assess the results of
each product, service as well as branches and sub-units.
- Online customer information verification system – upgrading and connecting to
involved modules of core banking SIBS.
- BIDV internal web portal: upgrading and adding some functions like searching
information, documents by part of contents, making professional document directory,
forums and questions/answers functions for users.
8.2 Enhancing information technology and e-commerce application.
- Mobile Banking system: associating with all mobile telecommunication service
providers to promote banking applications/services on mobile phone platform. Beside
current services like account inquiry, transaction inquiry, money transfer, bill payment,
inquiry of interest rate, exchange rate …, developing more services such as providing
financial consulting, deposits investment…
- Internet Banking system (integrated into the Web of BIDV): Beside current services
like account inquiry, transaction inquiry, money transfer, bill payment, inquiry of interest
rate, exchange rate …, developing more services such as international money transfer,
trade finance, loan debiting, providing financial consulting, deposits investment…
- Promoting the ATM network to new branches/sub-units locations. Setting up Autobank
network in some key areas: Ha noi, Ho Chi Minh city, Đa nang, Hai phong.
8.3 Human resource anticipation: current human resource of Department of Technology
and Center for Information technology.
- Additional personnel estimated: 30 software engineers. The schedule for recruitment
equally divided into years: 15 engineers/year for the first two years, the years afterward
unchanged.

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- Outsourcing personnel: some jobs that need integration with current systems like SIBS
or customer information verification, will have to cooperate with solution providers.
Number of personnel and time depend on progress of upper-stated jobs.
8.4 Budgeting
Unit: Dong
No
1

Items
Upgrading programs for internal management

2

Upgrading Internal Credit ranking system

3

Upgrading customer efficiency assessment and
classification

program.

Developing

Budgets
5.000.000.000
750.000.000
1.500.000.000

integrated

customer relationship management.
4

Developing

the

integrated

customer

records

1.200.000.000

5

Developing the Income-Expense Allocation program

3.000.000.000

6

Upgrading Online customer information verification

1.250.000.000

management.

system
7

Upgrading BIDV internal web portal

1.000.000.000

8

Upgrading Mobile Banking system

1.800.000.000

9

Upgrading Internet Banking system

2.500.000.000

10

Buying hardwares, equipments (only including

20.000.000.000

additional hardwares like firewalls, backup storage
equipments, servers, client computers …)
11

Reserved budget (10%)

3.800.000.000

12

Promoting the ATM , Autobank network (Expenses
from yearly infrastructure investment funds, so
excluded from budgets)
Total

41.800.000.000

8.5 Time schedule
No
1

Items
Preparation of detail project

2

Upgrading and developing new applications.

16 months

3

Buying hardwares, equipments (depending on

16 months

progress

of

application

Times
3 months

upgrading
12

and


development.
4

Trial implementation, adjustment, completion

3 months

5

Final implementation.

2 months

Total

24 months

Total time for the project is 24 months. During the process, any completed
application/program

will

be

tested

and

implemented. After

implementation,

applications/programs will be periodically updated, upgraded to meet business and
management requirements.
8.6 Some targets to 2020.
- Number of customers triple: 10 million enterprise and individual customers.
- At least 50% number of customers use BIDV e-commerce services like Internet
banking, mobile banking.
- 100% applications/programs are integrated and run on Web platform (internal web and
internet).

Conclusion.

References
1. Management Information System Textbook
2. BIDV Internal documents.
3. Website
4. Website
5. Website

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