UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ HO CAM CHI WORK OVERLOAD IN CARD BUSINESS TEAM AT BIDV – PHU MY BRANCH MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2018 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ HO CAM CHI WORK OVERLOAD IN CARD BUSINESS TEAM AT BIDV-PHU MY BRANCH MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR.PHAN THI MINH THU Ho Chi Minh City – Year 2018 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Executive summary The global trend and constant changes in service which makes companies change endlessly including banks, especially in Tan Thanh district where banks compete intensely. The purpose of thesis is that finding the reason of late debit card issuing problem in BIDV – Phu My branch. The findings of thesis revealed that work overload at card business team is the key cause of late debit card issuing problem at BIDV – Phu My branch in recent years. Basing real human resource status of the branch and interviews with managers and staff, transferring staff from other departments to card business team is the best reasonable solution.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Acknowledgements I would like to acknowledge all people who supported me during my studies without whom I could not finish my thesis. I would especially thank to my supervisor – Professor Phan Thi Minh Thu for her advice and guidance, without her help my thesis could not be completed in right way. I also would my thankfulness to my colleagues at BIDV – Phu My branch for the continuous support. I also send my gratitude to my family and friends for their encouragement and support.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of content Contents LIST OF TABLES .3 LIST OF FIGURES: .1 Background of Joint stock commercial Bank for Investment and Development of Vietnam (BIDV).2 Background of BIDV-Phu My branch and card team .1 Compared with branches of BIDV system in Southern essential economic zone (not including branches in Ho Chi Minh city) .10 Table 5: The late debit card issuing of branches in Southern essential economic zone (not including branches in Ho Chi Minh city) .2 Compared with competitors in same area .2 BIDV card center .3 Card business team of the branch .1 Capability of staff .2 Errors from the relating department (customer support team). Central problem validation .1 Capability of staff in card business team.2 Errors from relating departments .3 Over workload in card business team .1 Recruiting more staff.3 Modify the workload .4 Transfer staff from another department.39 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.1 The first qualitative research .2 The first qualitative research findings .2 The second qualitative research .2 The second qualitative research findings .50 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 1: Business operating status of BIDV – Phu My branch Table 2: The number of card of BIDV – Phu My branch from 2013 to 2016 Table 3: The late debit card issuing rate from 2013 to 2016 Table 4: The number of complaint about cards of BIDV-Phu My branch from 2014 to 2016 Table 5: The late debit card issuing of branches in Southern essential economic zone (not including branches in Ho Chi Minh city) Table 6: The number of debit card of other banks in Tan Thanh district Table 7: The late rate of debit card issuing of competitors compared with the standard of each bank in Tan Thanh district Table 8: The late card form transferring rate from support team Table 9: The over time working average a week per staff at departments in BIDV-Phu My branch Table 10: The cost for recruiting one staff Table 11: Expected cost of 3 card staff attending training in Ho Chi Minh city Table 12: Expected cost of organize training at the branch for 3 card staff Table 13: Expected cost of training for 24 staff of customer support team at the branch Table 14: Expected cost of sending 24 staff to BIDV training center. Table 15: The table of number of staff Phu My branch, Southern essential economic zone, BIDV system. Table 16: Expected cost of training for 24 staff at the branch Table 17: Expected cost of sending 24 staff to BIDV training center.
Table 18: Comparing cost between 4 alternative solutions Table 19: Action plan 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES: Figure 1: BIDV – Phu My branch structure Figure 2: Process of issuing debit card Figure 3: The late debit card issuing rate of branches belong to Southern essential economic zone (not including branches in Ho Chi Minh city) Figure 4: The late rate of debit card issuing in 4 banks in Tan Thanh district from 2014 to 2016 Figure 5: Initial cause – effect map Figure 6: CAUSE – EFFECT MAP Figure 7: The number of staff at every department of Phu My branch, Southern essential economic zone, BIDV system in 2017 Figure 8: The number of staff in operation area in BIDV Phu My branch, Southern essential economic zone and BIDV system Figure 9: MAP SOLUTION 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.1 Background of Joint stock commercial Bank for Investment and Development of Vietnam (BIDV) BIDV founded on 1957 under the name of Bank for Construction of Vietnam. Since 2012, the bank is equitized and renamed Joint Stock Commercial Bank for Investment and Development of Vietnam. Now, BIDV is one of the four biggest banks in Vietnam. BIDV working in banking, insurance, securities and financial investment field.
Until 04/2017, BIDV has 191 branches and nearly 1000 transaction offices in Vietnam. BIDV also offices in some countries including Laos, Cambodia, Russia, Myanmar and The Czech Republic 1.2 Background of BIDV-Phu My branch and card team Compared with branches of BIDV system, BIDV – Phu My branch is rather young. At initial, Phu My branch is a transaction office of BIDV – Ba Ria Vung Tau branch which started to operate in 1998 with 10 staff. Now, it has more than 100 staff with 1 head office and 5 transaction offices.
BIDV Phu My located on Tan Thanh district which is the place having many industrial zones of South East of Vietnam and seaport system. Thus, potential development of BIDV Phu My branch is high. BIDV – Phu My branch currently provide more 100 products and services. With the development history, BIDV – Phu My branch identifies that it focus on retail banking and small and average companies.
The branch always serves customers with full banking services same as in other branches of BIDV such as automatic teller machines (ATM) service, Master card, Visa card, Western Union, BSMS…. Table 1: Business operating status of BIDV – Phu My branch 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Unit: 1,000,000,000 VND 2012 2013 2014 2015 2016 Mobilized capital sum 1,413 1,423 1,672 2,177 2,774 Loan outstanding balance 1,322 1,519 1,763 1,989 2,014 Overdue loan rate 3.0% Earning from mobilized 13.5 capital Earning from loaning 21.2 Earning from service 8.7 Earning before tax 28.4 (Source: Internal Management Department – BIDV Phu My branch) Business operating status of the branch increased gradually during 5 years from 2012 to 2016. Overdue loan rate has increasing compared with 2014. Figure 1: BIDV – Phu My branch structure 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Board of Director Customer Risk Operatio Internal Transaction Relationship Management n Management offices Risk Customer Internal Phu Ha Customer Credit support Vault management transaction management transaction relationship department department department department department office department Tan Phuoc Card business transaction team Customer office support team Lam Son transaction office Tan Thanh transaction office Chau Duc transaction office BIDV – Phu My branch structure is built following standard structure of branches of BIDV system with leaders are Board of Director.
There are five collaborative functions helping branch operating including customer relationship, risk management, operation, internal management and transaction offices. Transaction offices locates in Tan Thanh district and Chau Duc district which guarantees presence of BIDV in 2 business areas 2. Symptoms Card team is belong to customer transaction department which has 4 staff and establish from 2012. Table 2: The number of card of BIDV – Phu My branch from 2013 to 2016 2013 2014 2015 2016 The accumulated number of debit card 31,121 38,166 45,011 51,234 Net increase 7,045 6,845 6,223 Source: BIDV card center 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com The number of card has increased sharply from 2013 until now but the rate growth decreases over years.
Figure 2: Process of issuing debit card Apply card forms at Basic data of Forms are transferred to customer support team customers is enter to card business team system of BIDV After 4 working days BIDV card center Card business team’s from the day which issuing cards and staff enter information customers apply forms, sending these to about cards into card they will receive their branches issuing system cards (Regulation of BIDV) Process of issuing debit card starts at customer support team which is the team receiving debit card forms of customers. This team also entering basic data of customers into BIDV information system. Then, service forms are transferred to card business team. At this team, these staff check information of customers again and enter card issuing information into BIDV card system.
From this, BIDV card center issuing card and send them to branches. Customers will receive their card after 4 working days from the day which customers apply forms at the branch. Table 3: The late debit card issuing rate from 2013 to 2016 2014 2015 2016 The late debit card 35% 41% 49% issuing rate 8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Source: Internal Management Department – BIDV Phu My branch According to report of internal management department – BIDV Phu My branch, the rate of card issuing late compared with standard time is very high and increase sharply. After only two years, this rate increased by 14% Ms.
Nguyen Thi Thuy An (vice head of individual customer transaction department and the supervisor of card team) identified that I and Board of Directors recognized the late debit card issuing problem and the rate has been increasing much in recent years. The reasons for that comes from many factors including customers, BIDV card center and departments in the branch Table 4: The number of complaint about cards of BIDV-Phu My branch from 2014 to 2016 2014 2015 2016 The number of complaint about cards of BIDV- Phu My branch 215 270 395 Documents to issuing card 10% 9% 10% Time to issue cards 9% 14% 17% Service Fee 20% 25% 27% Quality of consultant and support 14% 12% 8% Serving attitude of banking staff 10% 9% 7% Quality of card 7% 6% 5% Time for solving complaints 30% 27% 26% Source: Card center of BIDV 9 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com To regulation of BIDV, cards will be issued during 5 days from the day which customers apply card forms for BIDV. The number of complaints in 2016 increases nearly 2 times compared with 2014 and this number rises by 50 percent compared with 2015.From sources of card center of BIDV, the number of complaints about time to issue cards has increasing from 2014 to 2016. After only two years, this number increased nearly two times.
Documents to issuing card almost not change. Customers complaint more about the fee. Quality of consultant and support, serving attitude of banking staff, quality of card and time for solving complaints which are better after 3 years.