STATE BANK OF VIETNAM FACULTY OF FOREIGN LANGUAGE GRADUATION THESIS DIGITAL BANKING SERVICES AT TIEN PHONG COMMERCIAL JOINT STOCK BANK Student : Le Huynh Duc Class : K19ATCB Academic year : 2016-2020 Student ID : 19A7510054 Supervisor : Assoc. Pham Thi Hoang Anh Hanoi, June 2020 CERTIFICATE OF ORIGINALITY As a student of the Faculty of Foreign Languages of the Banking Academy, I have received and followed the Bank Academy's plagiarism policy. This is my statement that this graduation thesis is the result of my research and has never been used for any previous qualifications from Banking Academy or any other university. I confirm that the sources of this thesis are properly cited.
There will not be any errors or infringement of copyright, trademark, or other intellectual property law in my research. Here is my handwritten signature to once again affirm the originality. Hanoi, May 2020 Le Huynh Duc i Acknowledgments I would like to express my sincere appreciation to my lecturer, Assoc. Pham Thi Hoang Anh, Director of the Banking Science Research Institute (Banking Academy), who has the nature of a very enthusiastic instructor, her dynamism, vision, sincerity, and motivation have deeply inspired me.
She has taught me the methodology to carry out the research and to present the research works as clearly as possible, she taught me convincingly and encouraged me to become an expert. and doing the right thing even when the process of doing the thesis becomes difficult. Without her enthusiastic help, this graduation thesis could not have been completed. I would also like to acknowledge the support and love of my family, friends, and experts at TPBank.
They keep me going for the work, the difficult time in the researching procedure would not have been possible without their input. ii LIST OF ABBREVIATIONS ASEAN Association of Southeast Asian Nations ATM Automated teller machine DT Digital Transformation ISO International Organization for Standardization OTP One Time Password POS Point Of Sale SBV State Bank of Vietnam SMEs Small and Medium Enterprise TPBank Tien Phong Commercial Joint Stock Bank VietinBank Vietnam Joint Stock Commercial Bank for Industry and Trade iii LIST OF FIGURES Figure 2.1 Roadmap for DT 9 Figure 2.2 Digital radar with enablers and applications 10 Figure 3.1 The percentage of people using digital banking services in Vietnam 19 Figure 3.2 IBM’s definition of the 4 digital banking models.3 The level of research digital transformation of banks in Vietnam 21 Figure 3.4 Use of cash in the consumer market 24 Figure 3.5 Results of TPBank Internet Banking from 2014-2019 38 Figure 3.6 Results of TPBank Mobile Banking from 2014- 2019 39 iv LIST OF TABLES Table 3.3: Authentication methods of Mobile Banking service 31 Table 3.4 TPBank's earnings revenue of digital services from 2017-2019 37 Table 3.5 Results of TPBank Internet Banking from 2014-2019 38 Table 3.6 Results of TPBank Mobile Banking from 2014- 2019 39 Table 3.7 Results of TPBank SMS Banking in 2008 and 2019 40 Table 3.8 Results of TPBank Livebank from 2018-2020 40 Table 3.9 Results of TPBank Savy in 2018 and 2019 41 Table 3.10 Results of TPBank QuickPay in 2018 and 2019 42 Table 3.11 Results of TPBank MyGo in 2017-2019 42 v TABLE OF CONTENT CERTIFICATE OF ORIGINALITY i ACKNOWLEDGEMENTS ii LIST OF ABBREVIATIONS iii LIST OF FIGURES iv LIST OF TABLES v ABSTRACT 1 CHAPTER 1: INTRODUCTION 2 1.1 Rationale of study 2 1.2 Objective of study 2 1.3 Significance of study 3 1.4 Scope and Limitation of study 3 1.5 Definition of terms 4 1.8 Structural organization of study 5 CHAPTER 2: THE THEORETICAL FRAMEWORK OF DIGITAL BAKING SERVICE IN BANKING SECTOR 6 2.1 The concept of technology application 6 2.1 The definition of digital transformation 7 2.2 Roadmap for Digital Transformation in Finance 7 2.2 The impacts of technology in Banking system 11 2.3 The reality of digital banking services on the global scale 12 2.1 Types of digital banking services 12 2.2 Roles of digital banking services on the global scale 14 2.3 Problems of digital banking services on the global scale 15 CHAPTER 3: REAL STATUS FOR THE DIGITAL BAKING SERVICES AT TPBANK 18 3.1 The reality of digital baking services in the Vietnamese banking system 18 3.1 Introduction of digital banking services in the Vietnamese banking system 18 vi 3.2 Achievement of digital banking services in the Vietnamese banking system 22 3.3 Problems of digital banking services in the Vietnamese banking system 23 3.2 Introduction of TPBank 25 3.1 Brief history and development of TPBank 25 3.2 Business results period 2017-2019 27 3.3 Real status for digital banking services at TPBank 29 3.1 Introduction about TPBank’s digital banking services 29 3.2 The results of operation 37 3.3 Overall assessment of digital banking services at TpBank 43 CHAPTER 4 SOLUTION FOR DIGITAL BAKING SERVICES AT TPBANK47 4.1 Strategy and development orientation of TPBank in the period 2020-202547 4.2 Solution for digital banking services at TPBank 50 4.1 Solutions for the E-Banking services 52 4.2 Solutions for the TPBank Savy 53 4.4 Solutions for the TpBank MyGo 56 4.3 Recommendation to develop digital banking services at TPBank 57 4.1 Recommendation for TPBank’s managers 57 4.2 Recommendation for the Government 60 CONCLUSION 61 Bibliography 62 Appendices 64 vii ABSTRACT The development of digital services in banks is an indispensable trend of Vietnamese commercial banks in the face of integration and competition, helping to increase the efficiency of banking business, expanding distribution channels, increasing incomes. for the bank as well as minimize the risk for the bank. Through theoretical and practical research, the thesis has proposed feasible theories and measures to promote the development of digital services at TPBank such as human resource solutions, system security, and development.
information technology, standardization of organizational structure, and management. The solutions to develop the digital banking service that the thesis proposed, there are immediate application solutions, the solution is a long-term strategy that the bank can implement in a long time. Keywords: Digital Transformation, Digital Services in Banking 1 CHAPTER 1: INTRODUCTION 1.1 Rationale of the study In this context, the banking industry is one of the core industries affecting the national economy, the stability and development of banks have been associated with the stability and sustainable growth of the whole market. Throughout the development process, the banking industry has quickly adapted to changes in the world and in Vietnam.
Especially in the age of digitizing services in the Bank to replace traditional business models, it has been a strong development trend since the 90s of the 20th century. In Vietnam, the Bank Tien Phong Joint Stock Company (hereinafter referred to as "TPBank") was established on May 5, 2008, with the vision to become one of the leading commercial banks in Vietnam with advanced products and services, Contribute to the prosperity of Vietnam. With about 5 million customers nationwide, and is on the rise, TPBank is a bank with great potential to develop digital banking services. Along with economic growth, the demand for banking services will also increase.
At the same time, the competition between banks is also getting fiercer. To increase income for banks, increase service revenue, all commercial banks have entered the competition to provide digital banking services. TPBank needs to focus on developing digital banking services to attract people from all walks of life, small and medium enterprises; thereby creating a good foundation for the development of general banking services. The remaining issue is how TPBank needs to have strategies and policies to make a breakthrough, rise to win customers' confidence to develop digital banking services and affirm its position and brand in a competitive context of today's fierce picture.
From there, I chose the topic "Digital banking services at Tien Phong Joint Stock Commercial Bank" as the topic for my graduation thesis.2 Objective of the study The objective of the thesis aims to focus on is the following : First, learn the basic theoretical about digital banking services Second, analyze the current situation of digital banking services at TPBank Third, proposing solutions and recommendations to develop digital banking services at TPBank.3 Significance of the study This research will be deemed to be of significance to : - Business managers The findings of this study can provide bank managers with important information on digital service-related needs, current trends, and predictions for future digital services in order to improve the efficiency of business management, as well as introduce better digital service development policies. - Users of digital banking services From the findings, users will benefit if their frequently used services are focused more on upgrading and improving the service and thereby providing them with a higher quality experience. - Further researchers This finding can add insights to other researchers who want to explore digital service topics. This may also serve as a reference for future similar topic research.4 Scope and Limitation of the study Research scope: The thesis focuses on the current situation and the performance of digital banking services at TPBank.
A general and detailed description of existing digital banking services, as well as solutions to improve and potential digital banking services that should be applied, will also be mentioned Limitation Despite the good results of this study, a limitation of time, lack of previous research, and financial factors should be noted. Firstly, due to the time constraints in place of the Coronavirus Disease, this paper could not conduct other useful methods such as actual surveys and interviews that could produce more reliable results. Secondly, the available research materials are not enough. If there are many research papers available, different aspects of the research could be mentioned.
Finally, the lack of financial resources has given our researchers some difficulties in providing transparent ways to obtain information from the public.5 Definition of terms Digital banking service is further defined as the delivery of banking products and services to customers through electronic channels. Digital Banking Service is also known as Electronic Banking, Cyber Banking, Home Banking, or Virtual Banking and includes various banking activities that can be conducted from anywhere. ( Rajna, 2018) Operationally, it is the main topic of the research 1.6 Research Methodology Qualitative research with a deductive approach will be used in this thesis. All data, graphs, and charts are from different sources including books, journals, websites, articles, and reports.
The empirical part uses information from observation and discussion, while the theoretical parts provide readers with fundamental knowledge of technology, banking system, payment services, and digital transactions. My research methodology requires gathering relevant data from reliable sources to analyze the material and arrive at a complete understanding of technological applications in digital banking services. Through my thesis, I expect to shed light on the related questions by following several steps: 1. To analyze data: After searching for reliable sources, I will collect user data such as the number of digital banking services users, the number of digital banking transactions,.
to analyze the reality on a national and international scale. To ask questions: Specific questions will be made to dig into problems. To do background researches: Researches on domestic banks, foreign banks, and especially on TPBank are carried out. To construct hypothesis: Hypothesis will be constructed as the result of researches 5.
To identify problems: Researches reveal potential problems when applying technology in payment services. To implement solutions: Actionable solutions and recommendations to address all discovered difficulties 4 1.7 Data analysis Secondary data sources were collected to get the data needed for conducting this study. Different journals, articles, previous research were the main sources. In addition to, diversified information after careful examination from newspapers, websites of Central Banks, other commercial Bank publications, and annual reports, financial reports have also been taken advantage of.
This study also uses various types of chart: Bar chart, Pie chart, and other graphs for data analysis interpretation 1.