Professional bachelor degree in Finance-Banking-Insurance (Customer relationships management) WORK PLACEMENT REPORT Improving personal loans service of Vietnam Prosperity Commercial Joint Stock Bank, Cam Pha Branch Names of student: DO Ngoc Thien University year: 2021 - 2022 Tutor at TMU: DAM Thi Thanh Huyen Tutor at USTV: Marie-Josée Cambreling Tutor at (Company): PHAM Thi Hue Hanoi - 2022 i TABLE OF CONTENTS TABLE OF CONTENTS i LIST OF TABLES iii FIGURE iii CHART iii ACKNOWLEDGMENTS iv INTRODUCTION .v PART 1: OVERVIEW OF VPBANK CAM PHA BRANCH 1.1 VPBank 1.1.1 Information about VPBank 1.1.2 Activity: range of production, target, competition 1.2 Information about VPBank, Cam Pha branch 1.3 Introduce about my internship 1.3.1 The reason to choose the topic 1.3.2 Internship plan PART 2: INTERNSHIP IMPLEMENT AT VP BANK- CAM PHA BRANCH .5 2.1 Internship position, objectives, responsibilities and duties .5 2.1.1 Subject structure and internship location .5 2.1.2 Objectives of the project 2.1.3 Business procedure and work responsibilities 2.1.4 Daily tasks 2.2 Credit products for individual customers of Vietnam Prosperity Bank, Cam Pha branch 2.2.1 : Overview of personal credit at commercial banks .7 2.2.2 : Product characteristics and conditions 2.2.3 Credit process for individual customers at VPBank 10 2.3 Cases of using credit services at VP Bank, Cam Pha branch 14 2.3.1 Case No1: Business loan 14 2.3.2 Case No2: Loan to buy real estate 15 2.3.3 Case No3: Unsecured loan 16 i 2.3.4 Case No4: Car loan 17 2.4 Analysis of credit services for individual customers at VPBank, Cam Pha branch 18 2.4.1 Situation of personal credit services at VPBank, Cam Pha branch 18 2.4.2 Customer research 19 2.4.3 Competitor analysis 23 2.4.4 SWOT analysis 24 2.5 KPI and KPR .24 2.5.1 Key Performance Indicator – KPI 24 2.5.2 Key Performance Results – KPR 25 2.5.3 Recommendation .25 PART 3: INTERNSHIP ASSESSMENT 26 3.1 Difficulties encountered during practice 26 3.2 Achievements during the internship 26 3.3 Career plan 27 CONCLUSION 28 REFERRENCES APPENDICES ii LIST OF TABLES Table 1: Internship plan at VP Bank – Cam Pha branch Table 2: Daily tasks at VPBank – Cam Pha branch during internship Table 3: Survey result 20 Table 4: Survey results on satisfaction with credit services at VPBank .22 Table 5: Compare personal credit lending services at VPBank Cam Pha branch with banks in the region .23 FIGURE Figure 1: Credit growth chart over the years at VPBank from 2018-2021 18 Figure 2: Non-performing loan ratio chart over the years at VPBank (2018-2021) 19 CHART Chart 1: Internship office of VPBank, Cam Pha Branch iii ACKNOWLEDGMENTS To complete this project, I would like to express my deep gratitude to Ms DAM Thi Thanh Huyen for guiding and helping me throughout the process of writing this thesis Sincere thanks to the teachers of the Thuong Mai University and Toulon Var University for their dedication to imparting valuable knowledge that can be applied to the completion of the thesis This is also a solid foundation for me on my future career path I would also like to thank the Board of Directors and staff of VPBank - Cam Pha Branch for enthusiastically helping and creating conditions for me during my internship Due to limited knowledge and research ability as well as practical experience, I cannot avoid shortcomings I look forward to receiving your valuable contributions to improve my essay Thank you sincerely! iv INTRODUCTION In commercial banks' business activities, credit through loans is the main and long-term source of income of the Bank, loan products help the Bank to grow in profit as well as scale, but also can make the Bank bankrupt because it always has potential risks Therefore, credit activities play an important role, determining the existence and development of each Bank, in which personal credit activities are not out of this influence Faced with the general difficult situation of the domestic economy and the limited consumption demand of this customer group, the problem of improving the quality of personal credit as well as maximizing the potential from this customer group v PART 1: OVERVIEW OF VPBANK CAM PHA BRANCH 1.1 VPBank 1.1.1 Information about VPBank  English name: Vietnam Prosperity Joint Stock Commercial Bank  Abbreviated name: VPBank  Address: VPBank Tower, No 89 Lang Ha, Lang Ha Ward, Dong Da District, Hanoi City  Phone: 02473056600  Number of employees: The bank's network has covered the whole country with more than 227 transaction points and 27,000 employees working at Vpbank  Vpbank always follows the line based on its core values - Customers are the focus - Effective - Ambitious - Human Development - Trust - Make differences  Website: https://vpbank.com.vn/ca-nhan 1.1.2 Activity: range of production, target, competition  Range of production  Personal loan products at VPBank mainly develop traditional products, applicable to almost all customers such as: - Real estate loans: serving the needs of buying houses / land / project houses (mortgage with assets formed in the future), construction and repair of houses - Loans to supplement capital for individual business households - Loans to buy cars mortgaged with assets formed in the future - Unsecured loans (without collateral): consumer loans, overdraft - Consumer loans - Lending through credit card delivery  Credit card is a type of credit where customers are entitled to spend first, pay later through card payment method, with a limit set by the bank Currently, VPBank is applying many types of cards for different customer segments, such as: - VPBank Shopee Platinum credit card - VPBank Super Shopee Platinum credit card - Diamond World Card - Diamond World Lady Card - VPBank Visa Platinum Travel Miles credit card - VPBank Platinum Cashback credit card - VPBank Platinum MasterCard credit card - VPBank StepUp Mastercard credit card - VPBank Titanium Cashback credit card - VPBank MC2 MasterCard credit card - VPBank Number MasterCard credit card  Loan insurance at VPBank: Benefits when customers buy together with VPBank Loan Insurance: this is an insurance package for high-risk loans Loan insurance is responsible for paying part or all of the loan in case the customer encounters risks such as death, injury, natural disaster, etc  Saving  Target: VPBank believes that the bank will fulfill its mission of bringing the highest benefits to customers, paying special attention to the interests of employees and shareholders, building a strong corporate culture and making effective contributions to customers to the development of the community  Competition: As one of the earliest joint stock commercial banks established in Vietnam, VP Bank has made steady progress throughout the bank's history VP Bank has set strategic goals with the ambition of becoming the most consumer-friendly bank thanks to technology application and entering the group of most valuable banks in Vietnam 1.2 Information about VPBank, Cam Pha branch  Address: No 308, Tran Phu Street, Cam Thanh Ward, Cam Pha City, Quang Ninh Province  Foundation date: 01/12/2006  Director: Ms Ha Thi Xuyen  Phone: 0902190262  Number of employees: 30 employees  Activity: range of production, target, competition: Like the main branch, VPBank Cam Pha branch carries a full range of products, goals and competition Offering a full range of services to enhance VPBank's core values 1.3 Introduce about my internship 1.3.1 The reason to choose the topic In the business activities of commercial banks, credit is the main and long-term source of income for the Bank, helping the Bank to grow in terms of profit as well as scale, but also make the Bank bankrupt because it always contains potential risks Therefore, credit activities play an important and decisive role in the existence and development of each Bank, in which personal credit activities are also not out of this influence In the face of the current difficult situation of the domestic economy and the limited consumption needs of this group of customers, the issue of improving the quality of personal credit as well as maximizing the potential from This group of customers is still essential The issue of credit quality in general and personal credit in particular is always a topic of interest to banks above all, how to improve credit quality to operate more efficiently and reduce risks for banks goods is not a simple matter Vietnam Prosperity Joint Stock Commercial Bank is also not out of that influence With great development potential and highly appreciated position in the banking system in Vietnam Therefore, finding solutions to improve personal credit quality is one of the most important tasks of banks today, facilitating business processes as well as actively contributing to general development of the country Stemming from the above fact plus the need to learn more about the personal customer credit segment, I chose the topic: " Improving personal loans service of Vietnam Prosperity Commercial Joint Stock Bank, Cam Pha Branch " to make the content of my thesis 1.3.2 Internship plan Table 1: Internship plan at VP Bank – Cam Pha branch Date 1/3/2022 – 6/3/2022 Task/Mission Getting to know the environment and colleagues at work 7/3/2022 – 13/3/2022 Learn and read documents Outcome See how the staff at the bank work and what to in each position - Learn the history of the bank, its related to the credit process and credit products of the bank rules and requirements - Understand the loan policies of individual customers, the lending process, card opening and customers' rights when using credit services at the bank 14/3/2021- 1/5/2021 - Search and contact - Learn more consulting and customers with specific loan evaluation skills with each needs and advice customer - Together with the instructor - Have a better understanding of to meet the borrower to credit products, thereby easily appraise and offer suitable advising on suitable credit loans for customers services for customers - Make a loan application - Know about the credit process and submit it to the system and how to complete the loan - Complete the loan and application disburse 2/5/2021- 15/5/2021 SWOT analysis of VP Bank Find out strengths and – Cam Pha Branch weaknesses and offer solutions 16/5/2021- 28/5/2021 Completion my report - Knowledge of VP Bank's credit services - Building knowledge, mastering the process to serve the work in the future 2.4 Analysis of credit services for individual customers at VPBank, Cam Pha branch 2.4.1 Situation of personal credit services at VPBank, Cam Pha branch In recent years, our country's economy has also had remarkable successes in business and service activities The developed economy promotes increasingly large investment activities and one of the main sources of capital comes from banks Since then, individuals have increasingly used credit services of banks to serve business and consumer needs This is a good condition for banks, including VPBank, to promote the development of personal credit products Understanding the increasing needs of society, VPBank has plans and measures to develop this loan product Figure 1: Credit growth chart over the years at VPBank from 2018-2021 Credit growth over the years (%) Credit growth through the quarters of 2021 (%) In 2020, the demand for credit decreased deeply due to the impact of covid-19 (reduced to 12.17% compared to the previous years Despite the decrease in demand, the bank still kept the credit value stable In 2021, credit demand will recover strongly in the fourth quarter of 2021 (up 13.53% compared to the beginning of the year), the total outstanding credit balance to the economy will reach 10.38 million billion VND, this is a step marking a transformation after covid-19, reaffirming VPBank's position in the market Q1/2021 to Q4/2021 VP Bank grew from 2.95% to 13.95% This growth step helps the Bank affirm its role as a lifeline in the economy 18 Figure 2: Non-performing loan ratio chart over the years at VPBank (2018-2021) In 2021, VPBank takes the lead in the top 10 banks with a lot of bad debt with more than VND 15,800 billion, an increase of 60% compared to the previous year (from 3.81% to 7.36%) Due to the economic recovery, the high demand for loans after the epidemic has increased the rate of overdue debt It can be clearly seen that in 2020, the overdue rate is only 3.81%, mainly due to low overdue loans due to the decrease in loan demand due to the epidemic The high overdue rate goes hand in hand with creating difficulties and reducing reliability in the loan process at VPBank 2.4.2 Customer research Method: I conducted a survey through an online platform (Google form) using a questionnaire • Survey subjects: Customers who have used or are intending to use VPBank's personal credit services • Target: 150 customers - Determine customer satisfaction with VPBank's personal credit services, Cam Pha branch - Evaluate loan requests of individuals interested in the service - Develop suitable credit lending products of VPBank to meet these needs • Number of customers participating in the survey: 120 customers 19 • Time: May 1, 2022 and May 15, 2022 • Description of the questionnaire: Appendix Table 3: Survey result Characteristic Age Gender Job Monthly income Communication media Loan purpose Loan term Frequency From 18 – 25 From 25 - 40 From 40 - 55 Male Female Other sex Student Office worker Business Freelancers Retire – 10 Million VND 10 – 20 Million VND 20 – 25 Million VND Over 25 Million VND Via social networking site Recommended by Ratio 12.2% 57,3% 30.5% 64% 34% 2% 4,5% 22,6% 44,7% 23,2% 5% 7,9% 41,5% 35,6% 15% 20,6% 44,5% friends/relatives/colleagues Bank credit officer Business loan Borrow to buy real estate Car loan - years - years - years - years 34.9% 50% 22% 28% 10% 15% 30% 45% I sent a sample survey to 150 people and got it back, including 30 people who didn't take part in the survey The number of survey samples received is 120 samples, of which the number of people who are and have borrowed accounts for 70% More specifically, the number of men taking out a car loan accounted for the highest proportion, with 64% of the total number of customers Customers aged 25-40 years old accounted for the highest with 57.3%, while customers aged 40-55 years old ranked second with 30.5% and the lowest was customers aged 18-25 years old with 12.2% 20 The main customers participating in borrowing are Business, accounting for 44.7% This is the segment of customers that focus most of their loans on business, making the percentage of customers who want to borrow business loans up to 50% With an average income of 10 - 20 Million VND, accounting for 41.5% and 2025 Million VND, 35.6% of customers using loan products want to enjoy high interest rates and a repayment period of months - years has the highest rate of 45%, then the level from 5-6 years accounts for 30% 21 Table 4: Survey results on satisfaction with credit services at VPBank Criteria Reasonable loan Very Very Satisfied Normal Unsatisfied 40 35 25 12 60 45 10 40 40 25 10 80 25 14 72 26 15 52 38 22 48 36 27 satisfied unsatisfied interest rate The behavior of the staff is polite and proper The process and procedures of the bank are scientific and reasonable The bank is always committed to protecting customer information when lending The bank strictly implements the terms committed in the loan contract Bank branches are invested in modern and convenient facilities for customers Reasonable fee policy, suitable for all customers The level of customer satisfaction when using loan services at VBPank is rated quite high Very satisfied evaluation results make up the majority of the results However, there are still some criteria that still receive a relatively normal assessment 22 Therefore, VPBank Cam Pha branch needs to take measures to further improve customer satisfaction with this loan service Create a premise to bring the bank's loan product to compete with other banks 2.4.3 Competitor analysis Table 5: Compare personal credit lending services at VPBank Cam Pha branch with banks in the region Banks VPBank Vietcombank Vietinbank VPBank ACB Sacombank VIB BIDV Unsecured loans Borrow to buy real Car loan 12% 15% 9,60% 14% 17,90% 11% 16% 13,50% estate 8,5% 7,70% 8,50% 8,90% 9,50% 7,50% 8,30% 7,80% 9,5% 8,40% 7,70% 9,49% 7,50% 7,50% 7,40% 7,70% From the above table, we can see that the interest rates of loans at VPBank Cam Pha branch are very reasonable and offer many high incentives This will help the branch reach more customers, thereby having the opportunity to expand market share for loan products Not only are there preferential interest rates, the time to make documents and disbursement is also quite fast compared to other banks, customer care is always a top priority VPBank Cam Pha Express always wants to bring the best experience to customers, putting VPBank on the list of banks worth using loan services 23 2.4.4 SWOT analysis STRENGTHS - Large credit room WEAKNESSES - The process of handling incorrect and - Being a bank with many titles, ineligible documents is still slow belonging to the group of leading banks - Because it is a small quick payment, the at the moment authority to handle loans is still limited - Suitable loan terms, quick disbursement - Interest rates are still heavily dependent - Professional staff, with many years of on the head office, which inhibits the experience branch's competitiveness - Comfortable working environment, favorable for advancement - Preferential interest rate OPPORTUNITIES - The State encourages the demand for THREATS - The competition between banks with the loans after the epidemic to restore the same products is increasing economy - Limiting credit room brings many - The demand for personal loans is difficulties and challenges for banks increasing due to the development needs of the economy - Support policies are put in place to help individuals easily access loans - Diverse loan products, accessible to all types of customers 2.5 KPI and KPR 2.5.1 Key Performance Indicator – KPI For each employee in the personal credit department, KPI is one of the indispensable monthly assessments When I did my internship, each individual in the credit department had to complete the following monthly goals: - Loan disbursement target: billion VND/employee - Credit card quota: cards/employee - Target on payment accounts: 22 accounts/employee 24 - Insurance target: 60 million VND/employee Although I am an intern, I also try my best to fulfill the given targets Besides, constantly learning and absorbing knowledge for work and future work 2.5.2 Key Performance Results – KPR During my internship, VPBank Cam Pha branch in general and colleagues in particular supported and taught me many things that I did not experience when I was in school loan products of the bank, as well as being able to draft legal documents of the loan at VPBank In addition, the dynamic environment helps me to connect with people more, through meeting with customers and extracurricular sessions with people, it has improved my communication skills so much 2.5.3 Recommendation Through the process of internship and customer survey, I feel that there are many strengths to be able to compete with banks in the region However, it is impossible not to mention the limitation that VPBank has, it will be an obstacle in the long-term integration process of the country's economy VPBank needs to improve its image, promote its image, and link up with strong segments to promote growth The loan optimization process is also one of the ways to reduce the loan period to attract more customers Besides, the service attitude also contributes to improving the company's value 25 PART 3: INTERNSHIP ASSESSMENT 3.1 Difficulties encountered during practice - When I first entered the internship, I myself had never worked in a professional environment like VPBank, so I was still not familiar with the professionalism of the staff here - I also lack the office skills of a banker such as using a printer, using the bank's desk phone, etc - The next difficulty that I encountered was convincing customers to use the bank's services - The daily workload of a credit officer is quite large There are many types of documents, so it requires me to be meticulous and highly focused Solutions to overcome these difficulties: - I try to observe and learn from office staff about working style and office skills - Building relationships with my predecessors made it easier for me to learn - Read carefully, memorize the bank's loan products It gives me confidence when communicating with customers - When there are too many documents to handle, I can ask some staff to help me In return when they are busy, I am also willing to help them solve their problems 3.2 Achievements during the internship - Acquired knowledge: I have acquired knowledge about credit lending services at VPBank I also experienced working in a bank - Experience gained: I understand the process, implementation and necessary documents of the loan product I have trained myself to be confident when communicating with customers It will be a valuable experience that will help me in my future career - Improved skills: My communication skills have improved significantly I also learned a lot of skills in using office tools such as printers, desk phones, etc Finally, my office computer skills have also improved when most of my daily tasks have to be done appear on the computer 26 3.3 Career plan After I graduate, I hope there I can apply the knowledge, skills and experience I've learned in college as well as practice at my internship Being exposed as well as having experience as an intern at a bank makes me love the job of a credit officer even more My future plan is to go further in the financial sector, specifically the banking sector At that time, I will have access to more in-depth knowledge of the financial industry 27 CONCLUSION Along with the development of the economy, the people's demand for loans is increasing, so bank lending services are becoming more and more popular Over the years, VPBank has always had plans and measures to develop credit services for individual customers The report introduced an overview of VPBank Cam Pha branch through which to analyze, research and survey customers' opinions on credit service quality Assess strengths, weaknesses as well as opportunities and threats for VPBank From the above assessment and analysis, I have made recommendations to develop this lending service, creating a competitive advantage for VPBank compared to its competitors 28 REFERRENCES https://www.vpbank.com.vn/ca-nhan https://thebank.vn/ https://topbank.vn/ https://gocnhintaichinh.com/danh-sach-no-xau-ngan-hang-vpbank/ Information provided by the bank in written form APPENDICES Survey of customers about personal loan service at VPBank Cam Pha branch Hello! I am currently in need of a survey to serve my internship, so I hope you take some time to complete this survey so that VPBank can further improve the quality of credit lending services at branch I hereby declare that this survey will be used for research purposes only All your information and opinions will be kept confidential I look forward to receiving your cooperation Thanks a lot 1.What is your age? □ From 18 – 25 years old □ From 25 - 40 years old □ From 40 - 55 years old Please tell me your gender?) □ Male □ Female □ Other sex Your current job? □ Students □ Civil servants, office workers □ Business □ Freelancers □ Retire Your monthly income? □ million - 10 million VND □ 10 million - 20 million VND □ 20 million - 25 million VND □ Over 25 million VND What percentage of loan to value you expect for your car loan? □ Less than 50% □ 50 - 70%) □ 80 - 100% What is the loan term you want? □ - years □ - years □ - years □ - years Please rate the quality of VPBank's credit products according to the following criteria: Very satisfied Reasonable loan interest rate The behavior of the staff is polite and proper The process and procedures of the bank are scientific and reasonable The bank is always committed to protecting customer information when lending The bank strictly implements the terms committed in the loan contract Satisfied Normal Unsatisfied Very unsatisfied Bank branches are invested in modern and convenient facilities for customers Reasonable fee policy, suitable for all customers ... about the personal customer credit segment, I chose the topic: " Improving personal loans service of Vietnam Prosperity Commercial Joint Stock Bank, Cam Pha Branch " to make the content of my thesis... 17 2.4 Analysis of credit services for individual customers at VPBank, Cam Pha branch 18 2.4.1 Situation of personal credit services at VPBank, Cam Pha branch 18 2.4.2 Customer... theoretical issues related to personal credit and credit quality in commercial banks, analyzing personal credit quality of Vietnam Prosperity Commercial Joint Stock Bank, Cam Pha branch On that basis,