ACTUAL SITUATIONS ABOUT ASIAN STOCK TRADE BANK`S RETAIL (ACB) ACTIONS. COMPARE RETAIL ACTION ANALYST BETWEEN ACB AND VIET NAM HSBC

ystem capable of giant size impact with respect to motherland economy in which role is accommodated; support from state bank side be is very essential. In background present-day cut-throat competition, in order to keep his foothold and develop right at inland finance market was a challenges isn't little with respect to the governing body of the each trade bank, requisition in a strategic purview and a one event sharps governing body, accommodate to continuous changed the economy. If like trade banks still only aim at traditional and operational business credit product development according to mechanism " bureaucratically ", to the service of client follow type " is begged- donation " then sooner or later will not continue foothold on the market. Seeing service products developmental potency serve for client object personally and enterprise fits and is little in market economy. ACB is stock trade bank pioneer discovering for me monotelic that go true- systems development is retailed to only develop retail bank growth become premier that Viet Nam is present-day, ACB still to map out a trend towards accord developments to give Viet Nam to trade banks. Compare retail system between ACB bank and HSBC branch bank in Viet Nam. This is one of powerful and long-time financial clique in the world to who affirm operator purview and competence of pavilion, manager of ACB in particular and of Viet Nam young generation generally, affirm develop retail array is a trend towards perforce for inland trade banks. The main content of this thesis consist of 5 chapters: - Chapter I: general about action of trade bank in integration episodes - chapter II: general about retail system (products system, banking service dedicated to personally) - chapter III: actual situations about Asian stock trade bank's retail (ACB) actions - chapter IV: actual situations about imparity of foreign branch bank- HSBC- actions in Viet Nam - chapter V: compare retail action analyst between ACB and Viet Nam HSBC chapter i general about action of trade bank in integration episodes Viet Nam trade bank system is an all-purpose banking system; compound business is configured and developed powerful, not least after our country accedes to WTO (World Trade Organization) in the year 2007. Concept and feature of trade bank A. Concept According to who stipulate at article 20 items is 2 and 7 laws about lending institutions officially the Socialist Republic of Viet Nam is published: "Trade bank is total bank action a lending institution be realized and another business movements is related ". In other words more than trade bank is a enterprises trade in currency, is a executive lending institution, raises capital idly from subjects in economy to establish credit capital source and lended economic development, expenditure, etc. for society. B. Trade bank's point a) Trade bank is money a business specificity enterprise in the field- credit. Trade bank's action with a view to monetary streams leveraging and circulations serve for transact, pay stem daily in economy, simultaneity pass fund raising actions and lending. Trade banks be capable to create money from Pavilion of commercial operation own pass interest rates tools, ratio. So, trade bank is a country monetarist sustained contributory link of chain to vanish to be with respect to country convert economy to assist at regional and international integration such Viet Nam. b) Product that bank do business and make service is finance goods. In other words, that is money and priced documentary evidence as: share, debt bill of cost, bank draft, and assign at. This is market economies’ high-product ergo is function according to a process and must be administered by man-power resources have certain profession leveling, lean on the base of legality owing to ordinance legislation. c) In the course of action, product trade bank creating and furnishing direct service for consumer when there is need. Consequently, activity of bank base on trade mark and prestige creating with respect to client. Therefore, trade bank's action is a series of ceaselessness product quality enhancement service feeding and popularize marketing of spectra own is next and of spectra marketing publicity own to client. d) Trade bank's action is bridge ware between dormant capital personnel investor, enterprises, haves and investors, enterprises, personnel has capital need borrowed. Contributory trade banks isn't little into resolve unemployment cum contributory income and standard of living of population enhancement warrants capital with respect to phyla’s economically in order to develop profession, economic structure shift in a country. C. Class trade bank according to capital structure In Viet Nam, assorted trade bank based upon expends is awake about capital structure include: state-managed trade bank (belong to organization credit is state- owned) trade bank branch office stock trade bank, joint venture trade bank, is foreign, trade bank there is 100% capital inflows. Trade banks are state-managed in the course of action according to episode possession policy ever, there might carry out equalization become stock trade bank (or ancient trade bank is also fractional might nationalization become state-managed bank). State-managed trade bank State-managed trade bank is trade bank because of governmentally who founded, State's objectives economically total equilateral because of state- owned active capital invested executive contributory. Administration of state-managed trade bank owing to appointing state bank of Vietnam governor apparatus immunity after having government's opinion. Action of state-managed trade bank onion is director general and deputy general managers owing to appointing governing body and to governor state bank is approved. Stock trade bank Stock trade bank is trade bank who founded under joint stock company formality, active capital owing to capital contribution shareholders among them, shareholders might enterprises, sector of the economies, lending institutions and the same capital contribution personnel according to Viet Nam socialist republic law's ordinance. Only maximum capital contribution financial clique and bank of foreign country only permissibly is 30% stock at Viet Nam trade banks. c) Foreign branch bank in Viet Nam It be overseas banks’ subordinating agent Organization to who is permitted to open in Viet Nam. This branch office to mother bank at oversea capital investment and accountable guarantee with respect to all allegiances that Viet Nam legislation is stipulates. Foreign branch banks is in progress feature in Viet Nam presently is HSBC Standard Chartered Bank, ANZ d) Bank has 100% capital inflow It is Viet Nam foreign and operational possession by law bank founded by 100% capitals. This bank form has legal personnel capacity, have bureau right of combination, enlarge branch office and have rights and obligations fullness such as Viet Nam inland trade bank by laws. To that tense flecked 06/ 2008, Vietnamese government urgent busy to carry out completed license bank establishment of has 100% capital inflows in Vietnam give to two banks: HSBC and Standard Chartered Bank. e) Joint venture bank in Viet Nam It be bank who founded by kitty of two different countries on the basis to indenture joint venture. Joint venture bank is the artificial person of the country Vietnamese that there is headquarters, there is legal person’s capacity, there is conditions fullness according to ordinance, the Viet Nam law. f) Banking system commercially in Viet Nam - 5 state-managed trade banks - 37 stock trade banks - 6 joint venture banks - 28 foreign branch banks - 44 overseas banks’ representative office By the data from State Bank of Vietnam (SBV), digits therein before will keep incremental in next year’s because SBV are going on to licensing found stock trade banks, banks has 100% capital inflows. Like that, statute capital of banks will have to augment D. Trade bank assortment according to criterion, flax-comb does business Rating according to this criterion is only relativistic. It completely depend on the development strategy of the each banks in ever episode and proclivity, developmental potency those episode. A banks in the past can who is by retail who look up such as a wholesale trade bank, but when face a rather big potential about level of client personally, those bank can promote action as a of business strategy own a) Wholesale Trade Bank It is bank chiefly to transact and supply service product give client to object is corporation, non- transaction with client personally. b) Retail Bank It be bank transact and supply service products chiefly for object is personnel c) Bank is both sold mountain village, and retailed It is bank kind transacts and supply service for both clients personally and client is corporation. This is most generalized trade bank type. 2. Challenge and censorial globalization integration chance give Vietnam Trade Bank to system A. Chance Reach client pledge bank finance WTO in the field (flatten 16-18) will bring backed give finance vendor option to them, conformable bye bank. Beside of here, they also enjoy international standards banking services had with interest rates and competing fee level. Reach trade banks will obtain chances catch capital, also experiential study's fancy, technology enhancement and bank administration leveling. Competition newly will bear for a driving force trade banks action productive enhancement competitive capacity leveraging. Like that, reform trade bank fabric and mechanism of pavilion is a corollary to match new proclivity corollary in order to accord. Reach intellectual official talent, they will had is also pick working area match’s wage level deservedly. Moreover, in working environments professionally, they can develop at best competence work. B. Challenge Viet Nam trade banks will incur competing pressures from sides overseas banks has management leveling financial ability, technology,, experience on their market place that remarkably be bring products to service variety and more utility Finance market replace like namely money-market, property market, gold bullion marketed, etc. also will provoke pressure give investment of trade banks to channel attracted. Viet Nam trade banks can ever glory with product service their tradition about credit, be to arrange soon, competing pressure trade bank will had extra from assurors another lending institution such as moneyed corporations, investment funds, and economically postal service corporations. Pressure vernix caesura mastery of increasing client serve for trade banks. Criteria select their bank more and higher. Client becomes very sensitive with all-in cost and interest rates. Tale persuade and treat with more and more more difficult surname for majority be they is knowledgeable about finance more than before abound with risk such pick, staunchness of very easy eroded client, to lose namely very-high client. In addition, number of trade banks, lending institutions, overseas banks and availability investment funds bear for staffed incremental concernment is capable benefits is attractive. Create condition give talent about who work to them work better to solicit. This also is pressures give personnel to trade banks in problem. Chapter II II. General about retail system (products system, banking service dedicated to personally) 1. Actual situations about retail action of Vietnam trade banks In years near here, under competing pressure about who provide banking service and information technology's development fast, Viet Nam trade banks start modernization care promoted technology science's advancements enter retail market exploitation. Many banks invested is high-powered that give integration to technology to establish the infrastructure necessary that give service to development, meet the requirement more and more of the client, dynamic master face with challenged. The course more and more manifold and flexible fund raising formality such as interest stair interest rates frugality, frugality attending awarding, economically extracted and roots is flexible, indemnity frugality unitedly. Example such as Asian stock trade bank applied life insurance program sent economically unitedly. According to information from state bank, capital source mobilize of bank from population and make up 35-40% capital mobilize. Increasing bank (in the year 2007 reach about 6, 5 milliard USD), contributory that create foreign currency source substantially for banks and increase grossed since who waste acquaintances passing level of immigrant remittances Viet Nam trade banks had betterment steps about administration financial ability, technology, administered, organization structure and sales division rate, service product system. Many service types. Many retail banking service types was deployed as like executive unproductive credit bank account service, cheque, card, asset management, and fiduciary, pledged. Beside of reached results, retail banking service of synchronism trade bank still Vietnamese that many gaps, banks haven't been built banking service development variant retail in a ways and efficiency. Client’s retail banking service product not yet copious that, not already meet the requirements. Modern banking services is deployed tardo, service pay card still restrict about underdeveloped and use range acquired deep and broad that in the many the general public: Internet serviced newly stop chiefly In information interrogation level not already permission effect a payment, cash unused payment instruments as individual cheque nearly neither used, utility pay card is still limitative. Banking services serve to give high-income client has not yet been deploy universally to tier as asset preservative, counsel is financial, invest consult channel supply response not already traditional service customer service request is personal, service sales division modern that newly point supplies at a number of banks, transaction methods remotely base upon information technology foundation and electron haven't been spreader units rate accepts card still less, centralized main chief In boroughs and banking service capability urbanization, still busy machine ATM In experimental stages system connection concernment, consequently made limitative come clots. Many banks haven't visibility marketing strategy in retail bank action; still weak marketing activity and absence professionally, client proportion personally come close and banking service use still less. Coarsely productive client policy, not yet favorable transaction procedure not yet high nippy quality, primary needs response Viet Nam trade bank not already about banking service of different object groups, coarsely productive client policy, not yet favorable transaction procedure not yet high nippy quality, primary needs response Viet Nam trade bank not already about banking service of different object groups, a number of still professional canon and processes emphasize the aspect of secure guarantee for bank, haven't been favorably given client. Not yet pursuant organization machinery direct client, haven't professional cadre squadron about retail outside brokerage technology application and leveling technology of many gaps bank stills, low technology foundation, be incapable to develop or enlarge new applications. Still weak aggregate design leveling, many mischance latency application system, bank stills not has a information technology development strategy research responsible division. Application level information technology not very high, not yet mickle new products, response information secrecy problem not already is demanded, latency still hapless risk with both client and bank. On microcell range, although law environment was dramatically ameliorated, faces legal document about bank action chiefly build on the basis processing processes, many gap statute becomes and finis non- inclusions is professional. In advance competing and overseas banks pressure are mean to penetrate into Viet Nam market placing under 100% capital inflow bank formality, action such as card service fund raising, personal credit, and remittances Viet Nam trade bank needed further dynamic master at develop retail banking services where transfer the money. 2. Banking service development is retailed: trend towards perforce for trade banks A. Potential and benefit from retail banking services Population in Vietnam about 85 millions with 60% populations under age 30. Besides that, loftiness rate of economic growth is conducive to more and better Viet Nam life and income bracket of person market economy in much enterprise type fits integration episode also creating and sapling. Visibility Vietnam is a market place full of potential give retail, to actions if inland trade banks have exploitability and source force. Prime Minister's directive recently demands ministries; bank account past emolument executive phyla rendered give state budget word to stipendiary objects is heartened with respect to trade banks. Prime Minister's directive is pointed out from day for 1 January 2008, emolument object from state budgets, worker officer, national defense worker officer summer, warrior professionally, and labor by contract belong to Department of Defense and Ministry of Public Security, etc. As of day who is nationally render bank account past emolument embodied: official cadre, functionary, enjoy 1 January 2009, will perform render bank account past emolument give latitude to all of upper objects. Way renders each functionary emolument spreaded especially there will make a cards ATM end of the month to bank account roll-in, bonus, even both health insurance money also to credit transfer and client can withdraw at bank's any machine point of application ATM. Pay by ATM card it is also possible to get implemented at thousands of card accept point client even can send card past frugality, instead must slap implement procedure at banks. This also main that be underpinning for retail of easy bank come clots services come to client Small and medium size business retail carry-over tendentious busy trade bank, intensification come clots with client best personally. When carry-over is retailed, banks will have market place outgrown, risk spread high and able proceeds of a sale potential in business. With this proclivity, Viet Nam trade bank (gamp is of State or stock commences) are strive to developing limpid waters reach transversal retail banking service system is regional about sort quality and competitive capacity, Viet Nam prestige and trade mark of banking system enhancement step by step on finance market is international. B. Challenges newly give retail to action Now Vietnam banking system has 37 stock trade banks, 1 development banks 5 state - owned trade banks, 1 policy banks. State- owned trade banks en suite nearly 90% share markets (both remittance and lending), among them holding about make up 70%. Space overseas banks 10% share markets sub dermal (existing than 4 joint venture banks, 28 foreign branch banks, is 43 representative offices) only seizes share. Inland trade banks middle competition also become acrimonious especially at cities disqualify 1 and disqualify 2, where finance ergastic client concentration is big and accentuation bank density. Beside of banks newly who founded, public relation of after-birth examination trade banks, then new branch office spring up like the mushrooms on ways share market per more and more atrophic bank shrink, especially with respect to weakness a number of stock trade banks still. Clients will incline come close with many banks and abound with pick, consequently call for their requisition to who also become more exigent bank's service product not only must have competitive price level, but also must provide manifold and quality service products. How to diminish cost and enhancement is qualificative serve to enhance competitive power is a problems isn't simple with respect to many inland trade banks creating many so first jobs them play very essential in economy role ours. Opening financial domestic market that makes rising risks because of influences from outside, chance to make use of unequal rate, interest rate between domestic market and international market that reduces. Viet Nam bank system also must face to face with economic shocks, international finance and crisis hazard. In that case, capital market has not yet developed that will makes bank system must incur losses higher. Though road to deliver the goods to WTO still protects Viet Nam banks come to in 2010, ingress of foreign banks that are strong about capital, technology and having professional style of work that making competition is violent more. If before these banks only select into market that customers are enterprises, so now only the main is service for retail bank. For example ANZ bank, Standard Chartered Bank, Deutsche Bank… CHAPTER III ACTUAL SITUATION ABOUT RETAIL OPERATION OF ASIA COMMERCIAL BANK (ACB) General introduction about Asia commercial bank (ACB) History of forming and development of ACB Asia commercial bank is licensed foundation with total of initial capital that is 20 billions of VND and official operation on 04/06/1993. From first operation days, ACB defined vision that becomes top retail commercial bank in Viet Nam. In background of economic – society Viet Nam in that time “retail bank with target is personal, middle and small enterprises” that is a so fresh orientation with Viet Nam banks, especially is with a new found bank as ACB. Can state, ACB is a bank which is vanguard in barycenter development retail operations. Strategy Base on building operative strategy pass years that is: To make difference base on knowledge about needs of customers and tends customers. To build management risk system synchronously, effectively and professionally To maintain financial situation at high safe level and optimization using shareholder’s equity. Having strategy preparing human resource and training professional staff force To build “ACB culture” to become a spirit factor attached to whole system ACB is realizing step by step obstinate growth strategy and diversification. Obstinate growth strategy: expressed through 3 forms: Growth through the expansion of activities: ACB is actively developing network of distribution channels in the target market, urban Vietnam, while research and development of products and services to provide markets are and the new market situation requires the customer's increasingly sophisticated and complex. In addition, when conditions allow, ACB will open representative offices in the United StatesBottom of Form .. Growth through expanding operation: ACB built relation with other financial institution example card issue organizations (Visa, MasterCard), Assurance companies (Prudential, AIA, Nha Rong), Westen Union transfer money company, partner banks (Banknet), received the card agencies, overseas national currency exchange payment agency…etc…to realize growth target. ACB collaborate together with financial institution and enterprises to research development preeminent products for target customers, expanding multiform distribution channel system. Extra, ACB has strategy partner that is Standard Chartered Bank which is famous about retail goods exert all one’s strength profession skills exchange also advanced technology to enhance competitive ability oneself for integration process. Growth through merge and integration: ACB step by step builds received capacity with this non-mechanic kind of growth and operate this strategy when condition is permitted Diversification Diversification is another growth strategy which ACB considers operation. ACB has ACB corporation limited stock (ACBS), Asia finance bank leasing (ACBA), ACB is founding fund management company (ACBL). With competitive position and established quite firm on market. In the next time, ACB can examine operating diversification concentration strategy step by step to become supplier about thorough financial service by operations follow: Supply and strengthen enter into a partnership with insurance company to carry out combined supplement financial solutions for customers. Research to found Card Company (development from card center at present), purchase vehicles finance company. Research viability of operation service investment bank. Service product and quality of service: Major service product Capital mobilization ( receive deposit from customer) by VND, foreign currency and gold Use capital (credit facilities, investment, join capital in a business) by VND, foreign currency and gold: fiduciary loan and security property loan. Agent services (realize payment internal and external country, fund service, transfer overseas national currency exchange internal and external country, express transfer, life insurance though gold Gold business Issue card debit and credit: ACB Visa Electron/Master Card Electronic; ACB visa Debit/Master Card Dynamic, ATM card. ACB built quality management system follow standard of ISO 9001:2000 and to be recognized that reach to standard in areas (i) capital mobilization, (ii) lending short-term, medium-term and long-term, (iii) international payment and (iv) supply resources at association. Service quality ACB with over 200 service products are estimated by customers that is one of banks to supply the most copiously service products, base on modern technology information. ACB both is growth fast and to realize risk management effectively. In business environment has much hard and trial, ACB always hold fast position of a top Viet Nam retail bank. Detail is customer who can save time, simplify formality by hand in application online with consumption lending, and other products lending. ACB will examine records with time when is the latest 2 days. Customers want to send money, only need call, to give number of identity card and indispensable information, staff of ACB will ready prepare to you can reduce waiting time. With important money, staff will bring record to house to house to guide and explain for customer. With feature is “customer is barycentre” in most services. ACB conquered and kept own customers successfully. Rate of growth is high of ACB in capital mobilization and lending as well as quality of customer throughout 14 years that is the most clearly demonstration about acknowledgement and trust of customer for ACB. This is also just basis for development of ACB. Price and discount programs: Fee or interest rate changes according to economic situation but ACB always ensure competitive price about rate of fee compare with many commercial banks which have the same service quality. Interest of lending is flexible in limit to attract customer. Each season, each instance, ACB bank always has attractive discount programs. For example in summer 2008 recently, ACB attracted customers with “yellow summer ACB” program, with a total value of awards of up to 8kg gold ACB. In addition, the promotion also as "packaging" such as when sending a savings rate of most money, the cost of transferring money abroad is reduced to 5%, or loans with preferential interest rates, or donate protection Life first year. All the promotions as well as policies on interest rates also makes the difference of ACB. This is also one of the factors to keep customers of this bank. E. Distribution channel network According to annual report in 2007, ACB bank system includes 157 branches and public relation at development economic regions in the whole country to serve for over 25 millions of customers. At Ho Chi Minh city: 1 Exchange, 30 branches and 60 public relations. Northland region: 2 exchanges (Hai Phong, Ha Noi), 7 branches and 22 public relations. Midland region: 6 branches and 9 public relations. Westland region: 5 branches and 3 public relations. Eastland region: 3 branches and 9 public relations 5584 agencies where accept payment card of TTT ACB 360 paying agencies of ACB express transfer centre – Western Union F. Technology: In 1999: ACB rolled out program about modernize technology banking (Core banking), build network system wide area, intended for online and computerization deal operation; and in last 2001, ACB is official to run core technology banking system (The Complete Banking Solution) to permit all branches and public relations to connect together and to exchange immediately, share centralized data base. In 2005: ACB and Standard Chartered Bank (SCB) signed negotiation about wholly technical support; and SCB became strategy shareholder of ACB. ACB rolled out second period of modernize banking program, including composes (i) upgrade host computer, (ii) replace disposing exchange card bank software by a new software which has capability fitted with foundation of core technology at present,(iii) to lathe down ATM machine system G. Personnel and training Take into account 31 December 2007, total business personnel is 4,600 people. Cadre has graduated standard and upper graduated is 93%, often being trained professional at education center of ACB. According to Mr. Do Minh Toan, vice- president of ACB, any staff is adopted in working must spend 6 weeks to professional training at education center of ACB and having 2 weeks to practice work with mentors. Thus, new staff will clever with technological, process and direct learn experience also having condition to make relation with mate from the first. Some friends studied at high school are working at ACB bank to show training program of ACB give them confidence since the first time taking one’s duties. Every years, they are trained more professional skill a._.