NATIONAL ECONOMICS UNIVERSITY

ADVANCED EDUCATIONAL PROGRAM

BACHELOR THESIS

Topic: MEASUREMENTS TO ENHANCE THE EFECTIVENESS OF

DEPOSIT MOBILIZATION AT TECHCOMBANK BRANCH – BA
TRIEU

Student: PHAM PHUONG TRA

Major: Corporate Finance
Class: Finance 59A
Student ID: 11174748
Instructor: Prof. DO HOAI LINH

National Economics University

 STATUTORY DECLARATION

I declare that this is my own research, which was conducted under the scientific
guidance of Prof. Do Hoai Linh. The figures in the thesis are honest, reflect the actual
situation of Techcombank Branch. The research presented in this thesis is not copied
from any other thesis and has not been published in any previous studies. Once again, I
would likely to affirm the truthfulness of the above commitment.

Hanoi 25/05/2021
Signature
 ACKNOWLEDGEMENT

I would like to express my gratitude and sincerely thankful to my instructor Assoc.

Prof. Do Hoai Linh, who enthusiastically guides me to find a research direction,
approach realities and solve research problems so that I could fulfill my bachelor thesis.
I would like to express my profound gratitude to the teachers of National Economics
University and Advanced Program in particular has imparted me with useful knowledge
in the past 4 years. Moreover, I would like to express my gratitude internship workplace
for helping me during my 3-month internship period.

Bachelor Candidate

Pham Phuong Tra

 Table of Contents
Table of Contents ....................................................................................................... 4
ABRREVIATIONS.................................................................................................... 1
LIST OF FIGURES.................................................................................................... 2
LIST OF TABLES ..................................................................................................... 3
INTRODUCTION...................................................................................................... 4
CHAPTER 1 - OVERVIEW OF DEPOSIT MOBILIZATION EFFICIENCY ........ 5
1.1. Overview of commercial bank ............................................................................ 5
1.1.1. Concepts of commercial bank (sửa lại textbook)............................................. 5
1.1.2. Basic operations of commercial bank .............................................................. 5
1.1.2.1. Functions of payment intermediary .............................................................. 5
1.1.2.2. Functions of money creation ......................................................................... 5
1.1.3. Roles of commercial bank ................................................................................ 6
1.2. Overview of deposit and deposit mobilization of commercial bank .................. 7
1.2.1. Concepts of deposit and deposit mobilization of commercial bank ................ 7
1.2.2. Characteristics of deposit in commercial bank ................................................ 8
1.2.3. Categories of source of deposit mobilization in commercial bank .................. 8
1.2.3.1. Categories by term deposit ............................................................................ 8
1.2.3.2. Categories by type of deposit ........................................................................ 8
1.2.4. Indicators to measure the efficiency of deposit mobilization .......................... 9
1.2.4.1. Net interest margin (NIM) ............................................................................ 9
1.2.4.2. Growth rates of deposit ............................................................................... 10
1.2.4.3. The variety range of term deposits, types of deposit of fund mobilization. 10
1.2.4.4. Forms of deposits: ....................................................................................... 11
1.2.4.5. Current and savings account ratio (CASA ratio) ........................................ 11
1.2.4.6. Funding costs: ............................................................................................. 12
1.2.5. Factors affecting deposit mobilization at commercial bank .......................... 12
1.2.5.1. Objective factors: ........................................................................................ 12
1.2.5.2. Subjective factors: ....................................................................................... 13
CHAPTER 2 - CURRENT SITUATION TO DEPOSIT FUND MOBILIZATION
IN TECHCOMBANK – BA TRIEU ....................................................................... 15
2.1. Brief introduction about Techcombank – Ba Trieu .......................................... 15
2.1.1. History and vision .......................................................................................... 15
2.1.2. Organizational structure of Techcombank – Ba Trieu ................................... 17
2.1.3. Functions and duties of each department in Techcombank Ba Trieu ............ 18
2.1.3.1. General shareholder’s meeting.................................................................... 18
2.1.3.2. Board of directors ........................................................................................ 18
2.1.3.3. Board of supervisors ................................................................................... 18
2.1.3.4. Board of management ................................................................................. 19
2.1.4. The business performance of Techcombank branch ...................................... 20
2.1.4.1. Lending activities ........................................................................................ 20
2.1.4.2. Services ....................................................................................................... 22
2.1.4.3. Techcombank’s Branch results of operating activities ............................... 23
2.2. Deposit mobilization at Techcombank – Ba Trieu ........................................... 24
2.2.1. Scale of deposit at Techcombank-Ba Trieu over 3 years .............................. 24
2.2.2. Deposit mobilization at Techombank branch Ba Trieu ................................. 26
2.2.2.1. Deposit mobilization restructure Techcombank Branch (2018-2020) ....... 26
2.2.3. Cost for source of deposit mobilization ......................................................... 35
2.2.3.1. Factors that influence on cost of deposit mobilization ............................... 35
2.2.3.2. Costs of deposit fund mobilization at Techcombank Branch ..................... 37
2.2.4. The relevance between deposit fund mobilization and the use of deposit fund
mobilization .............................................................................................................. 41
2.2.4.1. The relationship total deposits and loan sales ............................................. 41
2.2.4.2. The relationship between credit balance and deposit mobilization ............ 41
2.2.4.3. The relationship between deposit mobilization and the use of deposit
mobilization at Techcombank Ba Trieu ................................................................... 43
2.2.5. Evaluation of deposit mobilization and management of deposit mobilization
business at Techcombank ......................................................................................... 45
2.2.5.1. SWOT ANALYSIS ..................................................................................... 45
2.2.5.2. Achievements and limitations of deposit mobilization at Techcombank
branch Ba Trieu ........................................................................................................ 46
2.2.5.3. Optimistic results ........................................................................................ 49
CHAPTER 3 - SOLUTIONS TO IMPROVE DEPOSIT MOBILIZATION
EFFICIENCY AT TECHCOMBANK BA TRIEU ................................................. 50
3.1. Orientation to improve fund mobilization efficiency at Techcombank – Ba Trieu
.................................................................................................................................. 50
3.2. Solutions to improve fund mobilization efficiency at Techcombank – Ba Trieu
.................................................................................................................................. 52
3.2.1. Extension and diversity of forms of fund mobilization ................................. 52
3.2.2. Formulating the withdrawal and customer care policy for effective and
trustworthy client ...................................................................................................... 53
3.2.3. Training enthusiastic staff with highly qualified and wholeheartedly to serve
customer ................................................................................................................... 55
3.2.4. Other solutions ............................................................................................... 55
3.3. Some suggestions to improve the deposit fund mobilization efficiency at
Techcombank – Ba Trieu ......................................................................................... 56
 1

ABRREVIATIONS
 2

LIST OF FIGURES
Figure 2.1 Organization chart of Techcombank ...................................................... 17
Figure 2.2 Loan outstanding balance at Techcombank branch................................ 21
Figure 2.3 ................................................................................................................. 27
Figure 2.4 Deposit mobilization structure of customers by type of money ............. 30
Figure 2.5 Proportion of fund mobilization at Techcombank Branch ..................... 34
Figure 2.6 ................................................................. Error! Bookmark not defined.
Figure 2.7 ................................................................. Error! Bookmark not defined.
Figure 2.8 The forecast of Vietnam GDP growth over the yearsError! Bookmark
not defined.
 3

LIST OF TABLES
Table 2.1 Income Statement of Techcombank Branch (2018-2020) ........................... 24
Table 2.2 Deposits of organization and individuals over 3 years (Unit: Million) ... 25
Table 2.3 Balance Sheet in 2018,2019 and 2020 of Techcombank – Ba Trieu....... 27
Table 2.4 Deposit mobilization structure by type of money .................................... 29
Table 2.5 ................................................................................................................... 31
Table 2.6 Deposit mobilization by term-deposit at Techcombank Branch (Unit:
million VND) ................................................................................................................ 33
Table 2.7 ................................................................................................................... 36
Table 2.8 Indicators to measure the efficiency of deposit mobilization at
Techcombank Branch ................................................................................................... 39
Table 2.9 ................................................................................................................... 41
Table 2.10 ................................................................................................................. 41
Table 2.11 The rate of bad debts and restructure of bad debts at Techcombank Ba
Trieu in 2018,2019 and 2020 ........................................................................................ 42
Table 2.12 ................................................................................................................. 43
Table 2.13 The relationship between short-term deposit mobilization and the short-
term debt at Techcombank Ba Trieu between 2018 and 2020 ..................................... 43
Table 2.14 The relationship between long-term deposit mobilization and long-term
debt at Techcombank Ba Trieu between 2018 and 2020 ............................................. 44
 4

INTRODUCTION
Techcombank Branch – Ba Trieu officially opened in 2012. Over 9 years,
Techcombank Branch – Ba Trieu has always been on the path of association and
development. In order to achieve that success, fund mobilization is assessed to be very
imperative towards Techcombank Branch. This strategic source of fund mobilization
helps Techcombank Branch – Ba Trieu to be proactive in operating activities, depend
minimally to other loans and develop sustainably in the future.
However, Techcombank Branch – Ba Trieu is facing with challenges in these days,
the commercial banks are getting into many troubles of fund mobilization. The
phenomenon of racing underground the ceiling deposit interest rates with term deposit
of less than 6 months occurred in many commercial banks, which result in high cost of
capital, volatile scale of deposit. Besides, the real estate is on the recovery, the stock
market has grown again, not mentioned to the scandals in banking industry that caused
many people to lose their deposit, ... Therefore, they are afraid of depositing money in
the bank. Therefore, those difficulties make Techcombank Branch is facing all kind of
risks from systematic to non-systematic risks. Techcombank Branch challenges are to
raise as much capital as possible at a reasonable cost and ensure its business strategy.
Thus, increasing deposit mobilization is a very urgent requirement of Techcombank
Branch, which contributes to solve the urgency from reality at Techcombank Branch,
the thesis “measurement to enhance the efficiency of deposit mobilization at
Techcombank Branch – Ba Trieu” was of author’ selection scope of research.
 5

CHAPTER 1 - OVERVIEW OF DEPOSIT

MOBILIZATION EFFICIENCY

1.1. Overview of commercial bank

1.1.1. Concepts of commercial bank (sửa lại textbook)
“ A commercial bank is a financial institution that engages in banking activities such
as money supply, financial services between consumers and banks, and vice versa.
Commercial banks, according to the Law on Credit Institutions, are credit institutions
that authorized to engage in all banking and related business activities for profit align
with the Law on Credit Institutions Use and other requirements of the law (Government
Decree No.59/2009/ND-CP on the organization structure and operations of commercial
bank).”
1.1.2. Basic operations of commercial bank
“Banking activities include fund mobilization, lending, discounting, guaranteeing as
well as providing financial services and other related activities”
1.1.2.1. Functions of payment intermediary
“Savers can pool their funds through a financial intermediary, allowing them to make
significant investments that favor the company in which they are investing. Financial
intermediaries, on the other hand, pool risk by distributing funds across a wide spectrum
of assets and loans. Households and countries profit from loans because they allow them
to invest more money than they currently have.
Financial intermediaries can also help you save money on a variety of fronts. For
example, they can take advantage of economies of scale to expertly assess potential
borrowers' credit profiles and maintain records and profiles at a low cost. Finally, they
lower the costs of the many financial transactions that an individual investor would
otherwise be required to make if the financial intermediary did not exist.”
1.1.2.2. Functions of money creation
“ Commercial banks increase the amount of bank deposits when they lend money. In
a mechanism known as the multiplier effect, the banking system will increase a
 6

country's money supply beyond the amount generated or targeted by the central bank,
generating much of the broad money.
Capital adequacy ratios and mandatory reserve ratios limit the total amount of money
that banks can lend. Banks are expected to hold a minimum, fixed percentage of their
deposits in a central bank account under the required-reserves ratio. In a fractional-
reserve banking system, where banks retain just a fraction of their deposits in reserves,
the principle holds that an initial bank loan generates more liquidity than it originally
lent out.
The required-reserve ratio RRR, which is calculated by the central bank, is the
maximum loan-to-deposit ratio, where R denotes reserves and D denotes deposits.
In practice, if the central bank sets a minimum reserve ratio (RRR) of 0.10, each
commercial bank is required to hold at least 10% of its total deposits as reserves, i.e. in
its central bank account.”
1.1.3. Roles of commercial bank
“ Commercial banks' main function is to provide financial services to the general
public and businesses, maintaining economic and social stability as well as long-term
economic development.
Credit creation is the most important feature of commercial banks in this regard.
They do not offer the borrower cash when they approve a loan for them. Instead, they
open a bank account for the creditor, from which he or she can withdraw funds. In other
words, they automatically generate deposits when they approve a loan.”
Primary functions
Commercial banks accept a variety of deposits from the general public, especially
from their customers, such as savings account deposits, recurring account deposits, and
fixed deposits. These deposits are refunded when the customer requests it or after a set
amount of time has passed.
Commercial banks offer a variety of loans and advances, such as overdrafts, cash
credit, bill discounting, money at call, and so on. They also provide demand and term
loans to a wide range of clients in exchange for sufficient collateral. They also serve as
trustees for their customers' wills and other properties.
On the basis of credit and payment intermediary, the role of credit development is
created. Deposits are absorbed by commercial banks, which are then used to make
 7

loans. The loans are converted into derivative deposits based on check circulation and
transfer settlement. The derivative funds, which are several times the initial deposits,
are raised to some degree, which significantly increases the driving power.
1.2. Overview of deposit and deposit mobilization of commercial bank
1.2.1. Concepts of deposit and deposit mobilization of commercial bank
A deposit is a term used in finance to describe money deposited in a bank. A deposit
is a financial transaction in which money is transferred to another party for safekeeping.
A deposit, on the other hand, may refer to a sum of money held as security or collateral
for the delivery of a product.”
Deposit mobilization is of imperative aspects of banking activity. Across the globe,
the mobilization of savings through intense deposit collection has been recognized as
the most groundbreaking responsibility of banking industry. Deposit mobilization is the
process, by which a financial institution collects cash or funds from the public via
current, savings, fixed recurring account and other specialized schemes (Digaria,2008).
According to Mohan(2012), banks plan their deposit mobilization strategy based on the
growth of country’s investment through branch expansion, the use of technology, and
ongoing employees’ training which helps to enhance deposit growth, increase bank’s
deposit options, widen the range of deposit products, optimize the coverage of media, ,
home-based learning about benefits to distribute and offer the door-to-door services and
so on. Elser et al(1999) defines deposit mobilization as the practice of encouraging
consumers to deposit cash with the bank or persuading new clients to come to the banks
and open accounts.The fundamental motivation of savings mobilization from an
institutional standpoint is the reduced cost of capital relative to alternative sources of
finances.
Based on the concepts which was defined by Kutanet al (2010), the commercial
banks are considered to be the financial intermediary which was receiving commercial
and individual deposits (savings) and transforming them to investments in the form of
loans. Local banks have been on a gigantic deposit mobilization push, since the adoption
of multiple currencies in 2009, offering a range of products and services customized to
their specific market, which has been seen them aggregate large amount from
depositors. Deposit mobilization is the foundation for the banks’ current and future
growth.
 8

1.2.2. Characteristics of deposit in commercial bank

The deposit in commercial bank made up of the largest proportion of total fund
mobilization
The operating activities of commercial bank primarily depends on source of deposit
mobilization. Now that the source of deposit mobilization made up the large proportion
so that the main activities of commercial banks rely heavily on the source of fund
mobilization
Deposit in commercial bank is instable source of fund mobilization, the customers
can withdraw money at any time. The commercial bank only penalizes the customers
by paying lower interest than the committed rates of interest with customers. Therefore,
commercial bank must remain a reasonable required reserve ratio to ensure the
capability of liquidity and be ready for the deposit withdrawal of customers.
1.2.3. Categories of source of deposit mobilization in commercial bank
1.2.3.1. Categories by term deposit
Term Deposit “Term Deposits, also known as Fixed Deposits, are an investment
instrument in which a lump-sum sum amount is deposited over a fixed period of time,
ranging from one month to five years, at a negotiated rate of interest. Banks, non-
banking financial companies (NBFCs), credit unions, post offices, and building
societies are all places where you can get a term deposit.”
Non-term deposit (Demand Deposit) Non-term deposit, or “ the demand deposit
account” (DDA) is a bank account in which funds can be withdrawn at any time without
prior warning. DDA accounts can, but are not obligated to, pay interest on deposited
money. DDAs are commonly found in the form of checking and savings account”
1.2.3.2. Categories by type of deposit
Domestic Currency is a deposit in VND deposited in a bank and then the customers
would receive the interest rates in the domestic currency at some specific times. The
domestic currency made up the largest proportion in the total fund mobilization in
Vietnam’s commercial bank.
Foreign currency is a deposit in foreign currency in a bank and then the customers
would receive the interest rates in the foreign currency. The foreign currency is
primarily the strong ones such as GBP, USD, EUR,…
 9

1.2.4. Indicators to measure the efficiency of deposit mobilization

1.2.4.1. Net interest margin (NIM)
The net interest margin (NIM) is a metric that compares a financial firm's net interest
income from credit products like loans and mortgages to the interest it pays on savings
accounts and certificates of deposit (CDs). The NIM is a profitability metric expressed
as a percentage that estimates the probability of a bank or investment company
surviving over time. This measure provides insight into the profitability of a financial
services firm's interest income versus interest expenditures, which aids prospective
investors in deciding whether or not to invest in it.
Simply put, a positive net interest margin indicates that an enterprise is profitable,
while a negative figure indicates inefficiency in investment. In the latter case, a
company can take corrective action by allocating funds to outstanding debt or
reallocating assets to more profitable investments.
Calculating Net Interest Margin (NIM)
Net interest margin may be calculated by the following formula:
Net interest margin = (IR – IE)/ (Average Earning Interest)
Where: IR=Investment returns, IE=Interest expenses
Factors affecting net interest margin (NIM)
The net interest margin of a financial institution can be influenced by a number of
factors, the most important of which is supply and demand. When savings accounts are
in higher demand than loans, the bank's net interest margin falls because it must pay out
more interest than it earns.
Central bank monetary policies have a significant impact on a bank's net interest
margins since these directives control the market for savings and credit. Consumers are
more likely to borrow money and less likely to invest when interest rates are low. This
usually leads to higher net interest margins over time. In contrast, as interest rates
increase, loans become more expensive, making savings a more appealing choice,
reducing net interest margins.
 10

1.2.4.2. Growth rates of deposit

A stable growth in quantity and time
To satisfy the credit, payment, and business needs of the commercial bank, the
deposit must have grown by a certain amount. A bank that wants to extend its network
must be able to mobilize a large amount of deposits and find an efficient lending and
investing channel. Deposit mobilization has improved over time, which is a good
measure of a commercial bank's effectiveness.
Formula
Growth rates of deposit = (Deposits of the year - Deposits of the just previous
year) /(Deposit of the just previous year)*100
The ideal growth rates of deposit is considered to be equal to 20%, which implies
that with the growth rates, the operating cost will increase by an amount of 12% per
annum.
Where the growth rates of deposit is positive and clearly defined the targeted value
as planned in commercial bank. A proper evaluation on the stability of deposit
mobilized will help the bank to determine appropriate time on use of fund mobilization
and to minimize the liquidity gap. On the other hand, the commercial bank must
consider the deposit mobilization structure and its relationship in short-term deposits
and long-term deposits. From there on, the bank can reduce the mobilization cost to
invest and operate more reasonably.
1.2.4.3. The variety range of term deposits, types of deposit of fund mobilization.
Reflects the deposit mobilization capacity across different term deposits, different
categories of deposits and the rational level of interest rates that the depositors can
accept. The variety range of term deposit, types of deposit of fund mobilization is also
the key element to determine the competitiveness of each commercial banks so as to
support its existence and development. The flexibility of term-deposit structure, interest
rates in each different economic periods will help commercial banks to attract fund
mobilization. Consequentially, the commercial bank can optimize the efficiency of fund
mobilization without medium-term capital and long-term capital or the sufficiency of
domestic currency, but inadequate foreign currency.
 11

1.2.4.4. Forms of deposits:

Depends on the type of depositors that commercial banks apply different forms of
deposits. Forms of deposits depend on the business characteristics and financial
capacity of commercial bank. The more diversified, convenient, and the flexible; the
greater ability to attract source of fund in the economy. Forms of deposit also come
from the different demand and pyschology of residents. It implies the diversification
type of deposit mobilization will help each individuals to find well-suited form of
investment.
1.2.4.5. Current and savings account ratio (CASA ratio)
The CASA ratio of the bank is the proportion of current and savings account to total
deposits. Since banks seldom pay interest on current account deposits and savings
account interest is typically low (3-4%), a higher CASA ratio means a lower costs of
funds. If these funds made up of significant portion of bank’s deposits, it means the
banks receiving these funds at a lower rate. It is widely assumed that a higher CASA
ratio indicates higher net interest margin. It is one of the metrics frequently used in
measuring banks’ profitability.
Formula:
CASA ratio = CASA deposits / total deposits
A higher CASA ratio indicates that a larger portion of the bank's deposits have come
from current and savings accounts, which are usually less expensive sources of funds.
Many banks do not pay interest on current account deposits, although money in savings
accounts earns just 3.5 percent interest.
As a result, the higher the CASA ratio, the greater the net interest margin, and thus
the bank's operating performance. The difference between gross interest income and
expenditure is known as the net interest margin, and it is expressed as a percentage of
average earning assets. Since the expense of this fund is relatively low, higher income
from CASA would increase the net interest margin. Many banks, for example, lend at a
rate of over 10%, whilst the interest paid on savings deposit is approximately 3.5%
Banks will raise their CASA ratio by providing higher interest rates on deposits,
which will draw more deposits, but they will also have to pay depositors higher interest
rates.
 12

1.2.4.6. Funding costs:

The interest rate charged to depositors on financial products such as savings accounts
and time deposits determines the cost of funds for lenders such as banks and credit
unions. In addition, the cost of funds has a huge effect on most businesses as they
borrow money.
Cost of funds and net interest spread are the two key elements that many commercial
banks used to make money. Interest rates are charged by commercial banks on loans
and other products that consumers, businesses, and large-scale institutions need. Bank
would charge a higher interest rate on such loans than the interest rate they paid to
borrow the funds initially – the cost of funds.
Formula:
Cost of funds = Total annualized interest expense/ (average bearing deposit
and other interest bearing borrowings + non-interest bearing deposit)
Funding costs effect to commercial banks
The funding costs affect directly to the cash reserve ratio (CRR) of commercial
banks. The commercial banks will always compare the funding costs with the market
rate of return to decide whether to increase or to increase the CRR
If the funding costs are higher than the market rate of return, the commercial bank
will increase the cash reserve ratio (CRR).
If the funding costs are either equal or lower than the market rate of return, the
commercial bank will freely lend out money. In addition, the commercial banks can
borrow money from the state bank.
1.2.5. Factors affecting deposit mobilization at commercial bank
1.2.5.1. Objective factors:
Environment of economic: customer’s earnings, payment and spendings are all
affected by the economic environment. The banking industry faces both opportunities
and challenges as a result of current economic environment.
The appreciation of inflation will cause the devaluation of currency.The benefits of
depositors will reduce when the interest rates decrease, creating the psychology to
customers to turn to hold gold or other commodities to ensure the value of currency,
thereby reducing the bank debts.
 13

Political and legal environment: Each nation has its own political mechanism
system, political stability, and foreign policy which will help the bank to mobilize the
fund resources. Citizens of other countries will deposit their idle earnings in banks
without having to speculate on the valuation of other assets.
Environment and competitiveness: The growth of competitors will make grounds
to the development of monetary market; and the market share of commercial bank has
shifted, promoting new services; products have become more diverse and service
quality has improved, thus providing customers with more options.
1.2.5.2. Subjective factors:
Interest rates: Interest rates are a key element in banking operations and one of the
economy's macro management instruments. Interest rates are often a factor that is
extremely responsive to the economy, regardless of any aspect. Furthermore, the
interest rate has a strong impact on borrowing and, as a result, on the bank's profitability.
Besides, when an individual or economic institutions wants to deposit money in the
bank; the interest rates are the most important factor to consider. Since those who have
money want to deposit in the bank; they will first compare the best deposit rates, then
consider the deposit security and the utilities they will get when sending money to the
bank.
Funds mobilization forms: Customers deposit money in the banks for distinctive
purposes, including security and monthly interests. As a result, they have a variety range
of deposit options as well as interest rates ranging from 3 months, 6 months and 9
months, ... As a result, commercial banks must use a variety of fund mobilization
strategies to mobilize more capital from general public.
Banking network: The convenience of using a service is more imperative than the
service cost for many people. The network system is responsible for ensuring that
services are delivered from banks to customers. As a result, the higher the efficiency of
fund mobilization, the more the distribution network develops and expands, and the
more modern technological facilities it has.
Style and qualification of bank employees: since fund mobilization is a type of
direct selling, the salesman's style, attitudes, and credentials have an impact on sales
effectiveness and buyer psychology. Recruitment of workers who have strong
professional standards, responsibility, passion for their work, and are good at what they
 14

do to help banks better serve their clients, as well as access to new business strategies
to meet economic needs.
Marketing and advertising policies: The aim of marketing activities is to draw
customers' attention to the bank's image so that they can compare and choose before
engaging in banking transactions. When it comes to network growth, commercial banks
must focus on creating a clear, appealing picture for consumer observation.
IT: New banking technology enables banks to manage and evolve modern products
and services in order to meet customers' growing demands. The advancement of
banking technology presents numerous opportunities for businesses, as well as
numerous challenges for individual banks.
 15

CHAPTER 2 - CURRENT SITUATION TO DEPOSIT

FUND MOBILIZATION IN TECHCOMBANK – BA
TRIEU
2.1. Brief introduction about Techcombank – Ba Trieu
Name: Vietnam Technological and Commercial Joint Stock Bank, commonly
known as Techcombank
Address: Techcombank Tower, 191 Ba Trieu, Hai Ba Trung District, Ha Noi
Tel: +84 (24) 3944 6368
2.1.1. History and vision
Techcombank was established in 1992, in the scenario of economy transition from
centralized economic regime to a market-oriented economy. At that time, Vietnam had
implemented many reforms and experienced the outstanding economic changes,
notably the growth of GDP is as double as in the previous decades. Starting with an
initial chartered capital only 20 billion VND, Techcombank has grown to become the
three leadings bank in terms of chartered capital in Vietnam. Techcombank’s success
originated from the strategy of focusing on customer’s ever-changing needs.Today,
Techcombank had provided a wide range of products and services to more than 6
million individuals and corporate customers in Vietnam through its dense office
network all around the country with one head office, two representative offices and 314
transactions offices across 45 provinces and cities nationwide. Not only satisfying the
demand of traditional Bank, but Techcombank had ensured the needs of financial
securities of Vietnamese people. In 2018, among the nine largest commercial banks in
Vietnam, Techcombank led in regard to non-interest income ratio, cost-to-net income
ratio, ROA (return on assets), and total operating income by each employee.
Techcombank has set its vision for future, success is not only the ultimate destination
but also the landmark of transformation. In 2018, Techcombank had marked a very
important milestone in lieu of its completion to be the largest bank IPO in Vietnam
history, and was listed its share on Ho Chi Minh Stock Exchange. The valued
international strategic shareholders had further strengthened Techcombank’s position
Techcombank continues to innovate to meet customer’s need. Whether it is an
individual customer or an enterprise customer, Techcombank’s aim is to be a centralized
 16

point for all financial solutions, Techcombank’s vision and mission is to become the
leading bank in Vietnam, accompanied with the public and business in Vietnam on the
journey to conquer dreams.
Milestones
Outstanding achievements in 2014: Affirm its position as the service-quality
leading bank with 23 prestigious awards from domestic and foreign organizations such
as Global Finance IFC, Finance Asia. Techcombank is the trustworthy choice of 3.7
million retail and 48 wholesale business.
Outstanding achievements in 2017: - Techcombank’s credit index is equivalent to
“country credit ceiling”, maintaining the profit growth as double as 8.036 billion VND,
ranked at second in terms of profitability by Asian Banker, with the number of
customers reaching 5 million. Techcombank also led regarding to the volume of
international card payment and Bancassurance products. Techcombank is one of
Manulife’s strategic partnership.
Outstanding achievements in 2018 - Official listed on Ho Chi Minh Stock
Exchange, with the ticker code TCB. The value of market capitalization at the time of
listing is 6.5 billion USD.

 Top 3 largest in Southeast Asia in 2018.

 Chartered capital increased as triple to 34.965.9 billion VND.
 Being the first private joint stock bank has a profit level that exceeds 10.000
billion VND.
 17

2.1.2. Organizational structure of Techcombank – Ba Trieu

Figure 2.1 Organization chart of Techcombank

(Source: Annual Report of Techcombank)

As can be observed from the organization chart of Techcombank, Tecombank has

already construct its organizational structure based on the combination between the
hierarchical organization and functional organization.
The hierarchical organization is known as the most traditional and simplest form of
structure organization. The hierarchical organization structure works in sequence:
Instructions was released from the top level then passed down to the senior managers
and then once again to staff level. If employee wants to propose idea, they will send
their offer to their own manager. Once the proposal is approved, it will be again
forwarded to senior managers. The results are then returned to the employees in reverse
of process.
The functional organization is a type of organizational structure in which
management function is in charge of by part of head office. This structure is
characterized by the functional staff who must be knowledgeable and proficient within
their management scope. According to Terry “Functional organization is an
organization which is divided into different functions such as finance, production, sales,
 18

HR, R&D… Each function is performed by each expert. The jurisdiction of executive
department, employees, and the jurisdiction by function as the third power belongs to
this type of organization”
Techcombank has greatly combined the two characteristics of hierarchical
organization and the functional organization to become its own paralleled
organizational structure include the categories of hierarchical and the categories of
functional organization – when each staff must be knowledgeable and proficient in their
own management scope. For these two above properties, Techcombank will save time
and money to instruct staffs from the boards of directors passed down to senior manager
and then once again to the staffs and vice versa. Instead, Techcombank will perform
immediate step, and it demands staff’s professional to make decision to their business.
On the other hand, the specific tasks who demand the instructions from the top level of
management will be achieved under the instructions of board of directors will be
returned this organizational system to the hierarchical organization.
2.1.3. Functions and duties of each department in Techcombank Ba Trieu
2.1.3.1. General shareholder’s meeting
The General Shareholder’s Meeting has the right to approve the development
orientation of Techcombank, to elect and dismiss the positions of Techcombank’s
Board of Directors and Board of Supervisors and perform other jurisdiction. The
General Shareholder’s Meeting include all shareholders with the voting rights. The
General Meeting of Shareholders is organized annually or extraordinary general
meetings in some exceptional cases.
2.1.3.2. Board of directors
Board of directors is the governing body with members elected by the General
Shareholder. The role and responsibility of the board of Directors are to supervise and
make a prime decision that relate to finance and operation as well as to formulate the
risk management strategy based on proposal from Board of Executive to achieve the
strategic goals of Techcombank, direct to the long-term success of Techcombank, and
bring the sustainable value for Techcombank’s customers.
2.1.3.3. Board of supervisors
Board of Supervisors is elected, dismissed by General Shareholder’s Meeting. The
Supervisory Board controls the activities of Board of Directors to ensure that the Board
 19

of Directors perform works in the best interests of Techcombank’s shareholders in

accordance with applicable regulations.
Techcombank has established the internal audit under the control of Board of
Supervisors in order to plan and perform internal auditing regularly and extraordinary
so that the General Shareholder’s Meeting can stick to the business of internal control,
compliance and risk management, report findings and cases that require resolution to
the Board of Supervisors.
2.1.3.4. Board of management
Board of Management manages Techcombank’s business of operations on daily
basis. Director general is appointed by the Board of Directors and approved by the state
bank governor on the tentative list.
Techcombank established four distinctive councils to assist the Board of
Management including Asset-Liabilities committee (ALCO) is the focal point in charge
of issues that relate to the administration of balance sheet (BS). ALCO performs strict
supervision and orientation for financial structure of Techcombank and simultaneously
is an inseparable component from the overall framework of capital and risk
management. ALCO’s goal is to control risks relate to the balance sheet including
liquidity risk, interest rate risk and exchange rate risk. AlCO estimates the external
environment, identifies the trend to determine the appropriate future environment.
Senior credit committee: The Senior Credit Committee is composed of experts that
approve on A-rating credits and some experts that approve on B-rating credits in order
to collect, stimulate expert’s intelligence and knowledge to improve the quality of credit
approval of Techcombank. Techcombank’s senior credit committee fulfilled task of
approving, granting, extending credit limit, issuance guarantee, …and other issues
related to credit granting under the jurisdiction that is approved by senior credit
committee.
Financial-Investment Committee: Financial-Investment Committee include
members, who are appointed and dismissed by board of directors. The mission of
financial-investment committee is to instruct and organize the financial investment
planning of Techcombank’s entire system, approve financial investment activities in
Techcombank within its assigned jurisdiction, report and propose to the Board of
Directors the adjustments of financial-investment planning in accordance with current
 20

situation/ report on financial investment performance, propose and tackle pending

issues relate to financial-investment activities.
Project Investment Planning Council: PIPC is a council that has been established
to perform tasks and duties of activities of internal investment project of Techcombank,
organize the implementation of investment project in accordance with the jurisdiction/
decree of Board of Directors and General Meeting of Shareholders and supervise the
implementation of the Project, terminate implementation of project; together with,
propose to terminate implementation of Project ( if the project is approved by Board of
Directors). If the project violates the resource scale, violates the scale of budget in
accordance with initial approved budget, command the Board of Executive, accomplish
the project investment procedures to ensure the transparency, security and effectiveness,
which is appropriate with legal regulations.
2.1.4. The business performance of Techcombank branch
2.1.4.1. Lending activities
Techcombank has lent to many businessed from the beginnings of establishment with
the support of Techcombank Head Office, which contributes to its development in
Hanoi regional network in particular, and the development of Vietnam Banking
Industry in general.
Techcombank also provides different types of loans such as: Exceptional Priviledge
for good customers (tài trợ chuyển nhượng bất động sản dự án), Consumer loans (cho
vay tiêu dùng), Household business loans ( vay sản xuất kinh doanh) , Study loan (vay
du học), and auto loan for business purpose ( vay mua ô tô kinh doanh).
Loan products are to subsidy the working capital for all Vietnam legal enterprises,
satisfying the needs of supplementing working capital for goods purchase, raw
materials, payment of expenses such as taxes, electricity receipts, staff wages,...
Loan mortgages with valuable paper archives or collateral: Techcombank is available
to satisfy customer’s loan requirement for manufacture, business, consumer service and
investment&development,... with the lending rate upto 95% of value of collateral or
valuable papers.
Loan syndication: Techcombank branch is ready to provide loan services for
enterprises to supplement the source of capital, expand and develop its operating
activities, subsidy long-term investment based on financial leverage; overcome the
 21

shortage of medium-term and long-term source of capital with the funding rate up to
100% of project cost.
Total loan outstanding balance at Techcombank branch focused primarily on
financing the domestic economic institutions and individuals. This grant annually made
up of up to 97% of the total loan outstanding balance over the last 3 years at
Techcombank branch. The entrusted loan of Techcombank branch steeply decreased by
one-fourth in 2020, which dropped by an amount of 113,310 million VND as compared
to 2018’s. Other credits occupied by 7,000,000 million VND-11,000,000 VND of the
total outstanding balance at Techcombank branch.

Loan outstanding balance at Techcombank branch

300,000,000

250,000,000

200,000,000 Individual and economic institutions

lendings
150,000,000
Entrusted Loan
100,000,000
Other credits
50,000,000

-
2018 2019 2020
year

Figure 2.2 Loan outstanding balance at Techcombank branch

More specifically, domestic individual and economic institutions loan grew steadily
over the years as follows:
No Norms 2018 2019 2020 Percent
1 Short-term loan 60,381,950 85,584,018 92,424,439 37.08%
2 Medium-term loan 36,774,904 47,443,165 85,255,144 20.56%
3 Long-term loan 62,782,363 97,774,844 99,844,672 42.36%
Loan balance by
4 159,939,217 230,802,027 277,524,255
terms

The domestic loan structure at Techcombank Branch is allocated primarily for short-
term and long-term loan. The loan outstanding balance by terms equally ranging around
37% for short-term loan over the three consecutive years (2018-2020). The medium-
 22

term loan mostly focused on financing manufacture businesses. These are loans with
maturities from 1 to 5 years. In addition, the allowance for credit losses increased
significantly over the years, except in 2020, whose indicator dropped by 691,827
million VND.
As for the short-term loan (loan limit<=1 year), the difference between short-term
loan and long-term loan was equivalent to an approximate of 2,000,000 VNĐ until it
appreciated substantially by 5,000,0000 VNĐ at the period end, which proves the
evenly development of loan outstanding balance came primarily from these two
sources, include: short-term loan and long-term loan. On contrary, the medium-term
loan whose indicator was just by a half of the two other loans initially, considerably
rose by twice in 2020’ of more than 85,000,000 VNĐ – make grounds for the more
concentrative of Techcombank on this kind of loan.
As for the long-term loan, this is the loan which made up the largest proportion of
Techcombank branch. These loans whose term in excess of 5 years were invested
mainly in construction industry, investment and purchases and business projects by
Techcombank branch. The concentration of funding for long-term loans was executed
strictly at Techcombank Branch, however, some enterprises with poor business
performance will result in overdue debt and transfer to off-balance sheet at
Techcombank Branch. This is one of the credit policies pursued by the Branch when
financing long-term loans because the interest-earned on these loans is higher than the
short-term loan and medium-term loans’. On the other hand, the Techcombank’s Branch
credit growth implementation is in tight compliance with Government regulation,
whereby the credit growth of whole system reached a level of 12% of the proposed
orientation at the beginning of the year to eliminate difficulties for production and
business, support the reasonable economic growth rate, ensure the safety and security
of the system. The branch also maintain its goal in the lending activities under the slogan
“Innovative, Dynamic and Effective” (Đổi mới, năng động và hiệu quả).
2.1.4.2. Services
Besides lending activities at Techcombank Branch, the services is considered to be a
potential aspect for most commercial banks to exploit because of its riskless, low
investment cost, and also the competitive advantage amongst commercial banks. Even
though some commercial banks whose lending policies offered low range of interest
rates, the customers would still switch to other banks if the service quality was not good
 23

enough. Being aware of this problem, Techcombank always pays attention to service
activities of the branch such as: e-banking services, foreign currency exchange, …

No Norm 2018 2019 2020

1 Service revenue 660,317 888,172 1,309,379
2 Service cost 168,622 319,303 447,329
3 Service income 491,695 568,869 862,050
4 (%) Growth 15.696% 51.538%

Service grew steadily in terms of profit from service activities (service income), with
which the branch’s profit in the next year was always exceedingly higher than the
previous year, and contributed substantially to the profit earned of the whole branch.
This is a kind of activities which has a close relationship – a supportive instrument to
increase other activities such as fund mobilization, credit activities,… simultaneously
result in the stable income with the low service cost, which increased by 15% as
compared to 2018’s. In 2020, the growth rate occupied by more than 50% as compared
to 2019’s, which was equivalent to 862,050 million dong. In terms of service income,
the main income primarily came from the payment-related activities, thereby, forex
trading and derivative instruments, …
2.1.4.3. Techcombank’s Branch results of operating activities
Banking industry, with Techcombank Branch in particular, considerably affected by
the volatility of macro-economic environment. Besides Vietnam’s WTO involvement
in 2007, there would be an increasing number of newly-emerged banks, particularly the
foreign-invested banks drive the competitiveness amongst banks to be fierce. Especially
in 2017, the increase of foreign-exchange reserve had supplemented to the legal-based
restructure of banking system brought about the opportunities and challenges for both
domestic and overseas economy. The adverse impact of economic downturn had
already substantially narrowed the exporting industry, capital markets. The
Techcombank Branch had always completed in excess of profitability plan with the
support of board of directors and proficient personnel of labor. Moreover, the
Techcombank branch also put priority for the credit growth, with the increasing number
of consumers and expanding the regional network of Techcombank Branch.
Together with, the table below figures out the outperform growth of total revenues
throughout the years, the absolute advantage implies the cost minimization during the
 24

course of periods with the moderate appreciation of total costs, whereas the growing
revenues appeared to be presented over the years.

Compare 2019/2018 Compare 2020/2019

No Norms 2018 2019 2020
Difference Proportion Difference Proportion
1 Total Revenue 18,349,768 21,068,145 27,042,526 2,718,377 0.14814231 5,974,381 0.2835741
2 Total Cost -5,842,507 -7,312,509 -8,631,195 -1,470,002 0.25160466 -1,318,686 0.1803329
3 Earnings before taxes 12,507,261 13,755,636 18,411,331 1,248,375 0.09981202 4,655,695 0.3384573

Table 2.1 Income Statement of Techcombank Branch (2018-2020)

The increasing of earnings before tax with the higher growth rates throughout the
years (2018-2020) proved to the consistent attempt of Techcombank Branch in terms of
operating activities. It can be obviously seen from the table above, the total revenue in
2020 increased by 5,000 billion VND, as compared to 2019’s. Moreover, the diference
of the total revenue earned in 2020 is as twice as the total revenue earned in 2019.
However, the total cost in 2020 was less than 100 billion VND as compared to 2019’s,
which primarily contributed to the substantial growth of earnings before taxes between
2020 and 2019. The percentage of earnings before taxes gained in between 2020 and
2019 reached a higher rate of return of 33%, whose indicator was only one-third of
proportion between 2019 and 2018.
However, to assess the fund mobilization of Techcombank Branch; thereby, find the
reasons, restrictions as well as the solutions, the analysis of current situtation of fund
mobilization at Techcombank throughout the years is necessary
2.2. Deposit mobilization at Techcombank – Ba Trieu
2.2.1. Scale of deposit at Techcombank-Ba Trieu over 3 years
The economic situation is still precarious, the world economic is still bleak in lieu of
the adverse effect of Covid 19, trade war between China and US, …. The emerging
economies as China, India and Japan did not remain its optimistic growth as the prior
years. Gold markets experiences exceptionally volatile, the World Gold Market grows
by 40%, whereas the stock market observes a slightly dip.
Under the world financial crisis because of a series of tense scenario as the emergence
of Covid 19, the trade war between the two powerful countries, US transferring
leadership, …, world economic throughout 2018-2020 has experience a lot of
 25

difficulties and challenges: huge number of bankrupt enterprises, high number of

inventory, the decrease of aggregate demand.
With many difficulties and challenges due to the disadvantages of domestic and
foreign macro-economy, the bank system embarked in 2020 in stressful liquidity
conditions and risk potential. Some banks are on the verge of losing the payment
capacity for overhead expenses, fierce fund mobilization competition on the market due
to the high demand of liquidity, the increase of bad debts.
To conquer that situation, the national bank has released resolutions and instructions
in order to insure the capacity of liquidity, stabilize the monetary market, decrease the
interest-rate base, and restructure the bank system.
Capital plays a prime role in the existence of bank activities. For this reason, the
deposit mobilization at branch always place at 1st position. The branch has already
extended the form of transaction payment through fast mobile (e-commerce payment)…
Vietnam Technological and Commercial Joint-Stock Bank with the advantage of
location in capital economic central – is a concentration spot of many domestic and
foreign companies like MBBank, Standard Chartered Bank, HSBC,… and with the
dense population around, Techcombank Ba Trieu has implemented paralleled capital
mobilized with the mobilization policies that suit with each customers. Techcombank –
Ba Trieu has also introduced promotion strategies like” mở thẻ hoàn tiền, vui hè rực rỡ
“, “ tặng 100% tiền nạp điện thoại với E-banking Techcombank”. The results of deposit
mobilization in Techcombank over 3 years expressed through the below table and chart:

Norms Compare 2019/2018 Compare 2020/2019

2018 2019 2020 Difference Growth rate Difference Growth rate
Deposits from economic institutions and
individuals 193,583,132
233,053,806 231,296,761 39,470,674 20% (1,757,045) -0.75%

Table 2.2 Deposits of organization and individuals over 3 years (Unit: Million)

The table elucidates the discrepancy regarding the growth of deposits from retail and
wholesaling business between 2018 and 2020. It is calibrated into millions
By casting a casual glance, the table makes it clear that the deposit of organizations
and individuals witnessed a comparatively surge in over the course of 2-year period
(2018-2019). It is quite surprisingly to observe that the latter period (2019-2020), the
depository growth figures experienced a plunge even though the considerably progress
at the former stage. The uttermost data in the table was the money deposit in 2019,
 26

which is closely followed by that feature in 2020 and eventually the minimal one was
money deposit in 2018
Analyzing further, the deposit growth shot up by the greatest 233,053,806 million in
2019, which is closely followed by the upmost variable which was comprised of
231,296,761 million. The measurably fractional ratio is equivalent to -0.7539% in terms
of deposit growth proportion. In contrast, the deposit growth of 2019’s as compared to
2020’s was approximately accounted for more than one-fifth.
The credit deposit grew well in 2019 by both individual customers and financial
institutions. Up to 72.3% of total deposit is of individual customers. Techcombank in
2019 witnessed the impressively growth regarding the number of customers with more
than 1 million new customers, which was soared by 40% at the sector of individual and
enterprise customers. For that reason, the demand-deposit account of bank’s total fund
mobilization has increased from 28.7% to 34% in 2019. Therein, demand-deposit
account contributed to the outnumbered growth with the growth rate of 83%, possessed
by 58% of total credit deposit of bank. The demand-deposit account is the major stimuli
that helps to decrease the cost of capital mobilized, contributed significantly to improve
the gross profit of 4.21% for 2019s, increased by 0.47% as compared to the previous
year.
Conclusions:
Nevertheless, Techcombank has made a great effort to the deposit mobilization
activities over the years exclude 2020 because of the adverse effect of the pandemic.
Moreover, Techcombank had already improved the scale of deposit account from
individual and corporate customers with the high level of growth which increase from
193,583,152 million VND in 2018 to more than 200,000,000 million VND in 2019. The
success of deposit fund mobilization in conjunction with other successes has performed
the strengths and declared the credibility of Techcombank – Ba Trieu because of the
increase of deposit capital has represented the trust and caring of financial institutions
and residents of Techcombank.
2.2.2. Deposit mobilization at Techombank branch Ba Trieu
2.2.2.1. Deposit mobilization restructure Techcombank Branch (2018-2020)
Source of fund mobilization is categorized into 3 different perspectives: by
customers, by type of money and by term-deposit
 27

Compare 2019/2018 Compare 2020/2019

No Norms 2018 2019 2020
Difference Proportion Difference Proportion
1 Customer deposits 201,414,532 231,296,761 277,458,651 29,882,229 0.148361832 46,161,890 0.1995786
2 Issuance of valuable papers 13,177,959 17,460,634 27,899,640 4,282,675 0.324987731 10,439,006 0.5978595
3 Debts owed to other credit institutions 7,452,105 17,460,634 26,252,723 10,008,529 1.343047233 8,792,089 0.5035378

Table 2.3 Balance Sheet in 2018,2019 and 2020 of Techcombank – Ba Trieu

In deposit mobilization restructure at Techcombank, the customer deposits made up

of the largest proportion. In terms of issuance of valuable papers, the table figures out
that the issuance of valuable papers increased over the years (2018-2020), with which
the data of the period ends experienced a steeply increase by twice as compare to 2018’s
and hit a peak of 27,000 billion VND. Moreoever, fund mobilizations from issuance of
valuable papers are a form of mobilization which has the stable interest rates, long-
lasting and higher than others short-term deposit mobilization. The Techcombank might
passively face the risk of interest rates in the future. Therefore, fund mobilization from
issuance of valuable will not be put priority if compared to fund mobilization from
customer deposits.

Fund mobilization restructure of Techcombank

Branch in 2018

Customer deposits Issuance of valuable papers

Debts owed to other credit institutions

Figure 2.3 Fund mobilization structure of Techcombank Branch in 2018

(Source: Income Statement of Techcombank Branch in 2018, 2019 and 2020)

The proportion of customer deposits both increase with regard to the scale of deposits
and the its percentage made up in fund mobilization structure at Techcombank Branch
in the surveyed statistics. In addition, the source of fund mobilization comprised of more
than 98.5% of total fund mobilization at Techcombank Branch. Therefore, the scope of
research will be in-depth of the fund mobilization structure under the angle of customer
deposits at Techcombank Branch.
 28

a. Deposit Products at Techcombank Branch

The highest interest rates at Techcombank Branch has been 5.4%/ year for the 12-
month term deposit or over 12-month term-deposit for customers whose age ranged
from 50 years old and above with the amount of deposit in excess of 3 billion VND.
Together with, the term-deposits with the maturity from 6 months to under a year, the
deposit interest rate ranged from 3.8% to 4.8%, which was depended on the amount of
deposit (the greater amount of deposit, the higher interest rates). Besides, if it were for
the sector of priority customers, interest rates will be even supplemented another 0.1%.
On the other hand, Techcombank also promotes the long-term source of fund
mobilization from certificate of deposit, the highest interest rate of certificate of deposit
at Techcombank Branch was up to 6.6% with flexible term-deposit (1-36 months) and
the minimum value of transaction for the priority customers was at least 1 billion VND.
Great variety forms of money deposit – flexible term-deposit: to satisfy the
requirement of customer’s money deposit that depends on their financial status and
savings demand, Techcombank with the great variety forms of money deposit and
flexible term-deposit such as: day term-deposit ( term-deposit by day), prepaid interest
saving, installment savings, periodic interest savings, bonus savings,…
More specifically, the online savings is one of forms of savings deposit which was
preferably interested in by customers. Techcombank Online Saving occupied the
outweighed advantage as compared to other online saving products in the market.
Convenience and time-saving: requires few quick and simple steps on the Internet,
the customers can open the saving account, settlement, place orders and deposit cash
and cash equivalents with the small amount of deposit without being presented at
transaction counter.
Managing the saving accounts with ease: Online saving account was linked to the
spend account, which allowed to follow and manage the information of saving accounts,
interest earnings, interest rates, … at any time on the Internet.
Absolute safety and security the customer can forget the concern of losing the
savings-book, getting it smudged or torn because all information is managed on e-
banking with multi-layer security.
High interest rate: Interest rates of online saving is always higher or at least equal
the interest rate at transaction counter that ensure the optimization of benefits for
customers.
 29

Customers can determine forms of deposit savings, term-deposit (ranged from 1

week to 36 months) in a flexible way up to the financial status and the savings demand
of each customers
Besides, the deposit interest rate of Techcombank is higher than that of other banks,
Techcombank also provides different deposit interest rates for individuals and
enterprises
b. Deposit mobilization restructure by type of money at Techcombank Branch

Compare 2019/2018 Compare 2020/2019

No Norms 2018 2019 2020
Difference Percentage Difference Percentage
1 Non-term deposit 54,612,613 76,053,396 122,972,489 21,440,783 0.39259764 46,919,093 0.616923
VND 48,125,562 70,297,064 116,113,684 22,171,502 0.460701155 45,816,620 0.6517572
Foreign currency 6,487,051 5,756,332 6,858,805 (730,719) -0.112642709 1,102,473 0.1915235
2 Saving deposits and deposit by term-deposit 143,613,379 151,581,145 149,420,224 7,967,766 0.055480667 (2,160,921) -0.014256
VND 136,635,672 145,641,213 144,128,288 9,005,541 0.06590915 (1,512,925) -0.010388
Foreign currency 6,977,707 5,939,932 5,291,936 (1,037,775) -0.148727225 (647,996) -0.109091
3 Escrow deposit 3,188,540 3,662,220 5,065,938 473,680 0.14855702 1,403,718 0.383297
VND 3,080,503 3,510,647 4,987,448 430144 0.139634339 1,476,801 0.4206635
Foreign currency 108,037 151,573 78,490 43536 0.402973056 (73,083) -0.482164
4 Total customer deposits 201,414,532 231,296,761 277,458,651 29882229 0.148361832 46,161,890 0.1995786

Table 2.4 Deposit mobilization structure by type of money

(Source: Income Statement of Techcombank over 3 years (2018-2020)

The customers deposit increased steadily over the years. In 2018, the total deposit
mobilization was 201,414 billion VND, which increased 14.36% in 2019 and reached
an amount of 231,296 billion VND. The growth rate of deposit in 2020 soared up to
20%, which was equivalent to the fund mobilization from customer deposits increased
by 46,161 billion VND.
In terms of deposit mobilization structure by type of money, the saving deposits and
deposit by term-deposit made up of the largest proportion. The percentage of saving
deposits and deposit by term deposit occupied more than 66% over the past 3 years
(2018-2020) in the customer deposit mobilization; together with, the foreign currency
only possessed a small proportion of roughly 5% in total saving deposits and deposit by
term-deposit and the residual amount was the domestic currency by VND. On the
contrary, the escrow deposit comprised of insignificant percentage of 2% in deposit
mobilization structure by type of money.
 30

As for the non-term deposit, the non-term deposit made up a moderate percentage of
more than 20%, however this is the potential form of fund mobilization from customer
deposit, therefore, the increase of the source of fund mobilization increased significantly
over the years, especially in 2020 when the source of fund mobilization is as twice as
that of 2018. It can be observed from the table that the domestic currency contributed
the largest to the fund mobilization from customer deposits. It can be also concluded
that the more Techcombank can mobilize from the source of deposit mobilization, the
more actively Techcombank can be in the operating activities.
The escrow deposit made up a very small proportion in total fund mobilization of
Techcombank Branch, however, it is seen that the amount of deposit was on increase
over the years, especially in 2020, the escrow deposit reached an amount of 5,065 billion
VND.

Deposit mobilization structure of customers by type of money

102%

100%

98%

96%

94%

92%

90%

88%

2018 2019 2020

VND Foreign currency

Figure 2.4 Deposit mobilization structure of customers by type of money

(Source: Income statement of Techcombank Branch in 2018,2019 and 2020)

The income statement figures out that the proportion of deposit mobilization from
customers in domestic currency made up of the largest percentage. In addition, the total
customer deposit in VND increased with regard to the quantity, exept in saving deposits
and deposits by term-deposit in 2020 and the percentage of VND made-up also
appreciated throughout the years. In details, the proportion of customer deposits in VND
in 2018 made up of 93%, and increased gradually by 3% at the period end.
 31

On the contrary, the total customer deposit in foreign currency decreased with regard
to the quantity, except in non-term deposit in 2020 and the escrow deposit in 2019 and
the percentage of foreign currency made-up also depreciated throughout the years. In
details, the proportion of customer deposits in foreign curency in 2018 made up of 7%,
and decreased gradually by 3% at the period end.
Nevertheless, fund mobilization from customer deposits in foreign currency is one
of the advantages of Techcombank Branch in fund mobilization activities because of its
scarcity, not mentioned for the customer’s decisions on other competitors to transact.
The greater fund mobilization from foreign currency will augment Techcombank
Branch satisfy demand for advances of enterprises, which operate globally.
Synchronously, increasing the forex trading activities of Techcombank Branch,
attracting more customers, and enhancing the profitability of Techcombank Branch.
c. Deposit mobilization by depositors at Techcombank – Ba Trieu
2018 2019 2020 Difference 2019/2018 Difference 2020/2019
Norms·
Deposit Proportion · Deposit Proportion Deposit Proportion Deposit Proportion Deposit Proportion
Resident Deposits 193,583,132 0.83027814 233,053,806 0.79336 209,107,778 0.8187855 39,470,674 0.2038952 (23,946,028) -0.102748925
Deposit from economic
39,571,425 60,701,635 0.20664 46,279,957 0.1812145 21,310,210 0.3506071 (14,421,678) -0.237583024
institutions 0.16972186
Total Deposit 233,154,557 293,755,441 255,387,735 60,780,884

Table 2.5
(Source : Balance Sheet of Techcombank in 3 years ( 2018-2020))

By virtue of one of the best retail banking in Vietnam, therefore it can be easily seen
that the deposits from residents were always made up higher portion than the deposits
from other financial institutions. Besides, the enterprises have got into trouble with the
threat of bankruptcy and business dismissal so that it is the reason why the deposits
from other financial institution show the inclination to decrease sharply.
Source of fund mobilization from residents include: savings, and commercial paper.
Deposits from residents contributed to greatest to fund mobilization in Techcombank –
Ba Trieu. The fund mobilization is the traditional instrument of fund mobilization in
Techcombank Ba Trieu, which occupied monumental and stable of total source of
capital.
In 2018, the fund mobilization from residents reached up to 193,582 billion VND,
which made up 83% of total deposit.
 32

In 2019, the fund mobilization from residents reached up to 233,053 billion VND,
which made up 79% of total deposit increased by 39,470 billion VND as compared to
2018.
In 2020, the fund mobilization from residents reached up to 209,107 billion VND,
which made up 82% of total deposit decreased by 23,946 billion VND as compared to
2019.
In the first two years (2018-2019), source of deposit from residents at Techcombank
Ba Trieu increased in both values and weights. This can be explained by the interest
rate on fund mobilization accelerated. Therefore, TEchcombank Ba Trieu has
advantageous to attract the deposits from residents. However, the figure in 2020
suddenly levelled out to around 200,000 billion dong and decrease equivalent to 23,946
billion because of the nasty consequences from the widespread of pandemic in addition
to the increase of required rate of return from state bank cause deposit activities in
Techcombank Ba Trieu less attractive.
On the other hand, there were lesser enterprises in effective network agents,
Techcombank Ba Trieu has not got along well with the large enterprises ( because of its
new operation in the region) brings to the pessimistic growth of its deposits from
financial institutions .
The current development orientation of Techcombank Ba Trieu constitutes both term
deposit and demand deposit. However, the demand deposit are much preferable than
the term deposit. The demand deposit is a kind of deposit with low cost and stable inputs
because enterprises deposit their money in the bank for the sake of convenience in
transaction but not for obtaining profits as residents.
In 2018, the source of fund mobilization from financial institutions reached up to
193,583 billion VND, registered by more than 16% total deposit
In 2019, the source of fund mobilization from financial institutions reached up to
60,701billion VND, registered by more than 20% total deposit
In 2020, the source of fund mobilization from financial institutions reached up to
21,130 billion VND, registered by more than 50% total deposit
The lower portion of deposit from financial institutions can be explained that
Techcombank Ba Trieu has been less accessible to the source of money come mainly
from the financial institutions in its region. Besides, the business activities of some
 33

financial institutions on Techcombank’s region witnessed the declivity. Some financial

institutions were going bankrupt. Others had to pay salaries for employees and repaid
debts so that the fund mobilization of Techcombank – Ba Trieu had decreased
significantly.
This is also one of the difficulties of fund mobilization business from financial
institutions of Techcombank – Ba Trieu. Through the analysis, it can be easily observed
that the deposit capital structure that was classified by each objects of Techcombank Ba
trieu still existing many restrictions, the source of capital was affected by not only macro
factors but micro factors also and the competitors. Therefore, Techcombank should be
honed in diversifying forms of fund mobilization to attract more customers in the
scenario of occurring many investment channels such as stocks, golds, and real estates,
… that caused the business of fund mobilization got into many troubles.
d. Deposit mobilization by term-deposit
The deposit mobilization by term-structure, Techcombank Branch classifies the
source of fund mobilization into 2 specific categories: term-deposit and non-term
deposit. The data is depicted as belows:
Compare 2019/2018 Compare 2020/2019
No Norms 2018 2019 2020
Difference Percentage Difference Percentage
1 Term deposit 143,613,379 151,581,145 149,420,224 7,967,766 5.55% (2,160,921) -1.43%
2 Non-term deposit 54,612,613 76,053,396 122,972,489 21,440,783 39.26% 46,919,093 61.69%
3 Total Deposit 198,225,992 227,634,541 272,392,713 29,408,549 45% 44,758,172 60%

Table 2.6 Deposit mobilization by term-deposit at Techcombank Branch (Unit: million

VND)
(Source: Income statement at Techcombank Branch in 2018.2019 and 2020)

The proportion of fund mobilization at Techcombank Branch is sketched out as the

following diagram:
 34

Proportion of fund mobilization at Techcombank Branch

120%

100%

80%

60%

40%

20%

0%
2018 2019 2020

Term deposit Non-term deposit

Figure 2.5 Proportion of fund mobilization at Techcombank Branch

(Source: Income Statement at Techcombank Branch in 2018, 2019 and 2020)

Non-term deposit at Techcombank Branch is primarily the deposit from other

economic institutions in order to liquidate, escrow, pay salary to employees,... Besides,
the non-term deposit is the amount of deposit of individuals in ATM machine. The
characteristic of the source of fund mobilization is for the utility payment, but not for
the interest rates, therefore, the source of deposit requires the lower cost of fund
mobilization. HaNoi is one of the gigatic regional network with economic institutions
and crowded residents, therefore, Techcombank Branch has already recognized the
importance of the source of fund mobilization. The Branch has also improved the
liquidating activities, enhanced the customer care service,... which is competitive to
other commercial banks, therefore, attracting enormous quantity of customers to open
saving accounts, especially the checkable deposits. Thus, the amount of non-term
deposit increased throughout the years(2018-2020), however decreased in terms of the
proportion until the period end.
As for the Techcombank Branch, the non-term deposit made up of very moderate
proportion of 7% in 2018 of total fund mobilization, whereas the figure dropped by 3%
in 2020 on annual. Despite the fact that the amount of fund mobilization increased
steadily over the years, the increase of non-term deposit would bring about the
disadvantage to itself operating activities due to the threat when optimizing the non-
term deposit to subsidy for term-deposit because of liquidity risk.
 35

Term-deposit is likely to increase with regard to the quantity and proportion. This
is the fundamental source of fund mobilization that serves for the stability of of
operating activities. The economic institutions deposit cash with time maturity under 12
months because of the demand for capital in operating activities. Term-deposit is just a
way to take advantage of idle cash, whereas the main purpose of the majority is to
deposit cash for the sake of earning interests and for the residents deposit with long
maturity. Therefore, the decision-making on term-deposit of residents depends the
votality of golden market, stock market, crypto,... and also the deposit products as well
as the interest rates trendline. At some specific time when the interest rates is high and
the expected rate of return declines, the residents tend to deposit cash in long maturity
and vice versa. The decision-making on term-deposit of residents is also influenced by
the promotion program, the deposit products in each periods. Therefore, Techcombank
Branch has implemented the variety range of products, term-deposit and attractive
interest rates, in addition to promotion policy to stimulate the depositors, thus, attracting
considerable quantity of source of fund mobilization from residents and economic
institutions.
The term-deposit in 2020 dropped by 2,160 billion VND, if compared to 2019 – that
explained for the majority of enterprises expanding the manufacturing and operating
activities after the pandemics in 2019 when the economic situation experience a rapid
recovery. In the previous years, the term-deposits increased by 7,967 billion VND,
which was equivalent to the growth rate of 5.55% as compared to 2018’s. The increase
of term-deposit is primarily deposit from residents because the Techcombank Branch
applied the higher policy rate than other banks in Hanoi regional network. The low
term-deposits indicated a poor business performance of Branch, because the source of
term-deposit helps commercial banks calculate the input and output source of fund
mobilization to satisfy the term loan.
2.2.3. Cost for source of deposit mobilization
2.2.3.1. Factors that influence on cost of deposit mobilization
In the current competitive economy, fund mobilization made the greatest
contribution to the activities of most commercial banks to remain and improve its
operating efficiency, satisfy the capital demand of economy, bring the high level of
profits to the bank. To burgeon market segment, and mobilize a wide variety of capitals
from financial institutions and residents, the commercial banks frequently compete with
one another in all aspects: technology, quality of products, infrastructures, …
 36

There are many factors worth mentioning, but the most strikingly is deposit interest
rate. Deposit interest rate is the imperative financial instruments that most commercial
banks applied to attract more customers and expand the capital market share in the
economy.
Deposit interest rates are implemented contingently on the Techcombank Ba Trieu’s
entire system and announced based on each different periods and also in tight
compliance with the Government regulations about the interest rate application.

Table 2.7
(Source: Structure of interest rates announced by Techcombank Ba Trieu in 2019)

If comparing the structure of interest rates announced by Techcombank Ba Trieu

with other commercial banks in the same region, we will have the following interest
rate structure:

Term BacA Bank Viettinbank MBBank BIDV

3 months 4.9 5 5.5 5
6 months 7.3 5.5 6.5 5.5
9 months 7.3 5.5 6.5 5.6
12 months 7.5 6.8 7.5 6.9
15 months 7.6 6.6 7.1 6.8
 37

18 months 7.6 6.7 7.4 6.8

24 months 7.6 6.8 7.7 6.9
36 months 7.6 6.9 7.5 6.9

If compared the deposit interest rates of Techcombank Ba Trieu with the four others
in the same region, we could see the substantial different between Techcombank and
other four commercial banks. The deposit interest rates per month of Techcombank are
lower than the four other commercial banks, however the prime operating instruments
of commercial bank is the deposit from customers and other financial institutions. It is
elaborated clearly in the two charts above that the adjustment of interest rates from
Techcombank was insufficient to attract more customers to deposit their money,
instead, the other competitors has shown a more attractive interest rates.
With regard to the demand deposit, Techcombank Ba Trieu applied step-up interest
rate structure to the deposit in Vietnam Dong, encouraged the higher interest rate for
higher level of deposits. Simultaneously, the demand deposit in Vietnam Dong of
Techcombank Ba trieu is also lower than other four commercial banks. Techcombank
Ba Trieu should probably increase the deposit interest rate to fit with general market to
compete with other competitors and attract more customers to deposit money there.
Techcombank Ba Trieu has also implemented different level of interest rates with
different kind of deposits such as demand deposit, term deposit, … Spontaneously,
Techcombank Ba Trieu has also implemented different level interest rates based on
terms, mode of interest payment. The implementation of various and flexible interest
rates is rationale because it based on the characteristics of each type of deposit and also
deposit demand of Techcombank Ba Trieu in each different periods. In addition to, the
implementation helps customers to have a wide range of options when deciding to
deposit money. This made the great contribution to attract customers and escalate the
source of money deposit in Techcombank in general and Techcombank Ba Trieu in
particular.
2.2.3.2. Costs of deposit fund mobilization at Techcombank Branch
In 2018, the interest deposit cost reached up to more 17,000 billion dong however in
2019, the figure registered for more than 22,000 billion dong, which increased by more
than 4,815 billion dong. The figure continued to increase in 2020, which increased by
 38

more than 23,000 billion dong, which increased by 777 billion dong as compared to
2019.
Compare 2019/2018 Compare 2020/2019
No Norms 2018 2019 2020
Difference Percentage Difference Percentage
Deposit from residents and
1 230,387,987 293,755,441 325,387,735 63,367,454 27.5047% 31,632,294 10.7682%
economic institutions
2 Interest Costs 17,509,487 22,325,414 23,102,529 4,815,927 28% 777,116 3.4809%
Percentage of interest costs
3 7.60% 7.60% 7.10%
and deposit mobilization

The declination of deposit mobilization cost from 2018 to 2020 come partly from
decrease of fund mobilization in long and mid-term, however the significant increase
of fund mobilization in short-term. Due to the increase in interest on deposit, the
customers preferred curating the short-term deposit to withdraw the deposit
immediately if needed. This also caused the Techcombank – Ba Trieu had to be suffered
from this general willingness, which caused the acceleration of the interest deposit cost
put pressure on most commercial banks ( the cost of interest deposit in long and mid-
term are more expensive than the cost of deposit in short-term) .
In 2020, the cost of interest deposit increased with the speech of more than 100%
and much higher than that cost in 2019, which is equivalent to more than 700 billion
dong. It can be explained by the volatility of interest rates in 2020 – one of the years
which has more volatile interest rates in tandem the increase of deposit fund
mobilization has brought about the increase of cost of interest deposit.
The increase of cost of interest rate under the condition of the relevantly increase of
source of fund mobilization. Especially when the market occurred volatile, that
commercial banks competed with one another about interest rate mobilized were
acceptable because it related directly to the economic benefits of customers so that it
was one of the major factors that determined the customer money deposit’s decisions
and behaviors. However, the problem is besides building up and adjusting the more
appropriate and competitive interest rate but still in tight compliance with the
regulations of state bank in terms of business of fund mobilization and the interest rate
mobilization. Techcombank Ba Trieu has also combined using different approaches that
brought out the efficiency. All the factors corporate a positive correlation will augment
Techcombank improve the quality of fund mobilization activities, increase the number
of depositors, enhance the operating efficiency of commercial bank.
 39

Indicators 2018 2019 2020

NIM ( net interest on margin) 3.5484% 3.7159% 4.2655%

CASA ratio 27.5507% 33.4103% 45.1453%

Norm 2018 2019 2020

Central bank and government

6,025,027 - -
debts

Interest Expense 10,023,687 10,762,553 10,250,703

Deposits and loans from other

36,425,560 61,266,635 47,484,812
credit institutions

Customer deposits 201,414,532 231,296,761 277,458,651

Derivative instruments and other

310,313 434,008 266,926
financial loans

Funding Cost (COF) percentage 4.3348% 4.0071% 3.3163%

Table 2.8 Indicators to measure the efficiency of deposit mobilization at Techcombank

Branch

The percentage of funding cost (%COF) shows the relationship between the funding
cost and the total deposits mobilization from customers in Techcombank Branch. The
percentage of funding cost (%COF) decreased steeply over the years (2018-2020)
because the appreciation of the total source of fund mobilization (central bank and
government debts, deposits and loans from other credit institutions, customer deposits
and derivative instruments and other financial loans). Notably, the central bank and
government debts was segregated from the primary instruments of fund mobilization of
Techcombank Branch in few current years, therefore, it could be one of the reason for
the declination of total fund mobilization, in addition, the interest expense as can be
seen from the table reduced slightly in the period end. Thus, the percentage of funding
cost insignificantly dropped by around 1%. It can be concluded that the Techcombank
Branch must pay 4.33 interest expense for each 100 dong deposit mobilization in 2018,
however, the percentage of funding cost has dropped by more than 1% meaning that
Techcombank must pay 4.0 interest expense for each 100 dong deposit mobilization in
 40

the period end. The percentage cost of fund mobilization is not only the interest rate
paid for the fund mobilized, but also many others incurred costs related to the fund
mobilization as analyzed.
According to the financial statement of Techcombank Branch, the reduction of
funding cost is considered to be a positive signal in fund mobilization with the term-
deposit much higher than the non-term deposit. The figure indicated that the
Techcombank Branch has optimized the term-deposit to subsidy for the non-term
deposit, which is redeemed as an efficient method to restrict the maturity risk and
liquidity risk.
As for the NIM (net interest margin) of Techcombank Branch, the net interest margin
is a metric that indicates how effective an investment manager or business is at making
decision and allocating capital. If this ratio is negative, it means the firms and
organizations haven’t made the good investment decisions. In other words, the company
won a negative margin by losing money on its investment. The net interest margin
(NIM) of Techcombank increased throughout the years(2018-2020, especially in 2020,
the net interest margin (NIM) reached a proportion of more than 4%. This implies that
after all interest expenses were charged, the bank would receive 4 VND for every 100
VND of invested assets ( loans to bank customers). The bank has made the sound
investment decision and efficiently used its capital, resulting in 4% return at the period
end.
As for the CASA ratio (current account saving account ratio), the percentage of total
bank deposits held in CASA is a key metric for determining a bank’s profitability. The
CASA ratio shows how much of a bank’s total deposit is in current and saving accounts.
A higher ratio indicates that a bank’s deposits are concentrated in current and saving
accounts rather than term deposits. A bank benefits from this because it receives capital
in a lower rate. As a result, the CASA ratio is a measure of a bank’s profitability of
producing profit since it is an indication of cost of raising funds. The CASA ratio of
Techcombank Branch as can be seen in the table above shows an increase over the
course periods (2018-2020). However, the two initial years of surveyed statistics
experienced a slight increase as compare to the period’s end - when the figure reached
an amount of 4.2655%, which implies the increase in terms of operating efficiency of
Techcombank Branch is much higher in the current year.
 41

2.2.4. The relevance between deposit fund mobilization and the use of deposit fund
mobilization
2.2.4.1. The relationship total deposits and loan sales

Norms 2018 2019 2020

Deposit mobilization 230,387,987 293,755,441 325,387,735
Loan Sales 157,554,103 227,885,283 271,197,350
Deposit mobilization/ loan sales 146% 129% 120%

Table 2.9
(Source: Balance sheet between 2018 and 2020 at Techcombank Ba Trieu)

In general, the source of deposit fund mobilization at Techcombank Ba Trieu had

satisfied the operating requirement of Techcombank. The average of deposit
mobilization/debts was sharply 132%. It was considered as a relatively high portion
because of its available method applications in order to diversify the mode of fund
mobilization to increase the source of deposit fund mobilization in order to satisfy the
borrowings demand of economy, restrict the risks because of the capital shortage that
assists increase the efficiency of operating activities. In addition to, support its position
in the regional network.
2.2.4.2. The relationship between credit balance and deposit mobilization
The relationship between credit balance and deposit mobilization at Techcombank
Ba Trieu between 2018 and 2020

Norms 2018 2019 2020

Loan balance 39,571,425 46,279,957 61,266,635
Deposit mobilization 230,387,987 293,755,441 325,387,735

Loan balance/deposit mobilization 17% 16% 19%

Table 2.10
(Source: The balance sheet in 2018, 2019 and 2020 of Techcombank Ba Trieu )

According to what can observed in the table expressed “ The relationship between
credit balance and deposit mobilization at Techcombank Ba Trieu between 2018 and
2020” , credit balance/deposit mobilization of the branch in 2019 decreased by 16% (
decreased 1% as compared to the previous year). Turning to 2020, the figure increased
 42

by 19% (increased 3% as compare to the previous year) . The credit balance of

Techcombank is insignificant in 2019 and 2020 if comparing with other competitors,
however, the figure is measurably high than the two remainder years.
In the third quarter, Techcombank actively continued to handle its bad debts. Cost
contingency in the first 9 months increased by 22,000 billion dong as compared to 605
billion at the same quarter in the previous year. In addition, Techcombank continued to
embody the rigorousness of actively enhance the cost contingency to treat the bad debts.
However, the indicator of credit balance/deposit mobilization <1 proves that the
Techcombank did not effectively take use of the source of fund mobilization that
brought about the stagnation of source of capital and as well did not generate the
profitability for the Techcombank. Nevertheless, the figure indicates the effectiveness
of credit activity of Techcombank and implies the sufficiency source of capital to lend
out.

Norms 2018 2019 2020

Non-performing loan/loan balance 1.80% 1.30% 0.50%
Debt groups
3rd debt group 1.80% 0.50% 0.30%
4th debt group 0 0.40% 0.20%
5th debt group 0 0.40% 0.00%

Table 2.11 The rate of bad debts and restructure of bad debts at Techcombank Ba
Trieu in 2018,2019 and 2020
(Source: Balance sheet of Techcombank Ba Trieu between 2018 and 2020)

Norms 2018 2019 2020

Medium and long-term
75,890,701 201,908,613 250,981,634
deposit
Medium and long-term
180,113,255 583,811,607 498,003,673
loan
Medium and long-term
deposit/medium and long- 42% 35% 50%
term loan
 43

Table 2.12

According to financial note in financial statements, it is observed that the bad debts
of Techcombank decreased over the past three years. Up to the year of 2020, the rate of
bad debts and total debit balance of Techcombank was 0.5%. The loan amount came
mainly from the payment of public debts, debts from bankruptcy enterprises. The
amount of debts had influenced greatly on the quality of credit at Techcombank Ba
Trieu. However, in terms of the restructure of debt groups, it could be easily seen that
the optimistic signal was the increase of bad debts focused mostly on group 3 and group
4, and the threat of losing capital source. However, Techcombank has improved this
situation and that clearly seen in the table the declination of rate of bad debts over 3
current years because of its efficiency application of measurements to enhance the
situation of debt collection.
As what is acclaimed by the CEO Jens Lottner, Techcombank has conducted a sea
change of measurements in order to augment customers and support the strength of
balance sheet to overcome the financial crisis and the devastation as a whole to economy
system. The measurements include reschedule the loans for customers who are affected
by Covid-19, providing preferred interest rates, increasing the liquidity to ensure the
sufficient source of credit. In conjunction with, promoting the management of bad debts
to maintain the quality of assets.
2.2.4.3. The relationship between deposit mobilization and the use of deposit
mobilization at Techcombank Ba Trieu

Norms 2018 2019 2020

Short-term deposit
108,069,571 306,187,630 450,068,194
mobilization
Short loans 70,212,691 205,089,563 341,078,453
Short-term deposit
154% 149% 132%
mobilization / short loans

Table 2.13 The relationship between short-term deposit mobilization and the short-term
debt at Techcombank Ba Trieu between 2018 and 2020
(Source: The balance sheet of Techcombank Ba Trieu between 2018 and 2020)
 44

Norms 2018 2019 2020

Medium and long-
75,890,701 201,908,613 250,981,634
term deposit
Medium and long-
180,113,255 583,811,607 498,003,673
term loans
Medium and long
term deposit/
42% 35% 50%
medium and long-
term loans

Table 2.14 The relationship between long-term deposit mobilization and long-term debt
at Techcombank Ba Trieu between 2018 and 2020
(Source: The balance sheet of Techcombank Ba Trieu between 2018 and 2020)

As can be observed in the aforementioned table, it is clearly seen that the structure
between short-term deposit and short-term debt are relevant and appropriate and ensure
the liquidity. Not only did this structure satisfy the demand for short-term use of deposit
mobilization, but this figure was also sufficient to supplement the source for the bank
to use on the credit on long-term and mid-term.
However, the fund mobilization in short-term and long-term met the demand of
lending in long-term and meet-term and have an inclination of decrease over the years
even though the source of lending capital was not only the deposit fund mobilization
but also the deposit fund mobilization in short-term, other fund mobilizations,…
Techcombank has already got into difficulties when being forced to use the short-
term fund mobilization to lend out in long-term, especially in 2019 and 2020 when the
credit demand was measurably high than the source of fund mobilization in long-term
and mid-term from the money deposit activities. Therefore, apart from the support of
short-term source of capital, Techcombank must also use the source of borrowings and
other sources of capital, … This will lead to the decrease of liquidity, potential risks and
also decrease the profit of Techcombank. It proves that the structure between fund
mobilization and the use of fund mobilization in long-term and mid-term still exist a lot
of restrictions that needs to be surmounted on time.
 45

2.2.5. Evaluation of deposit mobilization and management of deposit mobilization

business at Techcombank
2.2.5.1. SWOT ANALYSIS
Strengths:

 There are 12,356 with the proportion of more than 80% of staffs, who own
the university degree and more than 20% own the postgraduate degree in
Techcombank. Therefore, it is noteworthy that Techcombank has good
quality of human resource.
 The charter capital of Techcombank increased over the years, therefore, it is
especially implied the sustainable growth of joint stock company as
Techcombank, which currently accesses to more than 40 thousand billion
dong.
 Moreover, Techcombank also provides a wide range of products which are
high competitive.
 Techcombank also prepared staffs with the modern - sophisticated devices
and IS (information system)
 Techcombank has recruited young and enthusiastic staffs at workplace.
 Techcombank also offers customers with flexible policies to promote the
brand loyalty of customers.
 Techcombank has dense network of branches.
Weaknesses:

 The performance of research and development is not as high as expected.

 Non-performing loans increased over the years.
 Techcombank has not yet provided the appropriate staff promotion.
Opportunities:

 There are a growing demand towards payment by credit card.

 It is easily seen in a current decade, the habit of using services from banks of
Vietnamese has increased substantially. As a result, the future retail market
is conjected would accelerate in few years later.
 Besides, the Vietnamese demand for source of capital are still stood at high
rate.
 46

 Techcombank has also provided the problem-solving package with secure

social and political conditions. In conjunction with, Vietnam is in the stage
of the integration economic as compared to other regions.
 Moreoever, Techcombank has already collaborated with Manulife to provide
customers with the insurance for credit.
Threats:

 The dramatically growth of international bank in Vietnam, such as HSBC,

Standard Chartered Bank,…
 Moreover, Techcombank must pose a serial attractive strategy for the market
share growth that augment them to enter the competitive market.
 Techcombank also got into troubles with the risk from operations, and the
stock market and other investment channels in Vietnam has shown the
outstanding rate of return.
2.2.5.2. Achievements and limitations of deposit mobilization at Techcombank
branch Ba Trieu
a. Achivement
Techcombank recorded a 20th straight quarter of revenue increase in September this
year, with total profit reaching a new high of VND19.3 trillion, up 33.5 percent year on
year. Among Vietnam's leading banks, the revenue growth was the highest.
According to a representative of Techcombank, the bank's success is due to its
diversification of revenue sources, which include non-interest income, card and
insurance charges and fees, bond issuance, and other services.
According to its financial statement, non-interest income surpassed VND6 trillion
between January and September, up 46.4 percent year on year and accounting for over
31% of total revenue, up from 28.3 percent in the same period last year.
The value of Visa credit and debit card transactions increased by 65 percent and 36
percent, respectively, resulting in an increase in transaction fee revenue and contributing
to the lender's development.
Techcombank has also created an e-platform for small and medium-sized businesses.
The e-platform offers preferential pricing and rates for international transactions and
foreign currency purchases, in addition to waiving payment fees for local transactions.
 47

Techcombank Branch – Ba Trieu ’s the platform's initial accomplishment was a

significant increase in transaction volume, while demand deposit balances and the
Current Account Savings Account (CASA) ratio increased. As a result, fee collections
from its services, in addition to CASA, contributed significantly to the bank's profit
growth over the nine-month period.
Techcombank Branch – Ba Trieu have built a customer database that will help them
to increase linkage and CASA ratio. The CASA ratio aids Techcombank’s net interest
margin (NIM) rate and fund mobilization.
In addition, individual consumer online transactions totaled 256 million worth
VND3,300 trillion in the nine-month period, up 117.2 percent and 84.4 percent year on
year, respectively.
b. Limitations:
Besides these achievements, Vpbank's capital mobilization.Thang Long still has
many limitations. Proper analysis of this limitation helps Techcombank branches find a
stable and sustainable development direction, avoiding risks in mobilizing fund– one of
the top priority tasks of the bank. Some typical limitations are as follows:
Firstly, the growth rate of mobilized capital is still low. Fundraising growth rate of
Techcombank branches in 2020 only increased by 3.32% compared to 2019.
Meanwhile, the economy showed a recovery signal from 2015.Therefore, the increase
in fund mobilization by only 3.32% is one of the limitations when evaluating the
effectiveness of the project. As for the result of fund mobilization at the Techcombank
branch, because the branch has not reached its full competitive advantage, where the
branch is located - the center of the capital, where there are many enterprises and
densely populated with high income.
Secondly, the structure of mobilized capital is still limited. The fund mobilization at
Techcombank Branch is mainly customer deposits, issuing valuable papers accounts for
only base currency (VND), the foreign currency made up of relatively modest (ranging
from 2% in 2018 to 7% in 2020); whereas the fund mobilization from valuable papers
is a source of long-term and stable term. It helps the Techcombank Branch proactive
when financing long-term loan portfolios. Besides that, one of the shortcomings in the
customer's deposit structure that the branch is a very large demand of deposit (up to
97% in 2020 and 95% in 2019). For demand deposits, customers deposit money for the
purpose of payment without depositing the interest, therefore, customers can withdraw
 48

at any time, whilst the branch uses this capital to finance loans with term, causing many
business risks.
Thirdly, the amount of fund mobilization in foreign currencies is still very small,
which was primarily the non-term deposit. Individuals participating the bank with the
purpose of asking the bank keeps the non-term deposit for them, whenever they need it,
they can withdraw it and use it, but not for the savings package with stable maturities.
Therefore, most of the foreign currency in banks is owned by manufacturing enterprises,
thus the foreign currency of Techcombank Branch source may be decreased sharply
when the enterprise needed to withdraw capital to reproduce and do business. To
increase the amount of fund mobilization in foreign currencies The branch has
participated in selling valuable papers in foreign currencies with attractive terms and
interest rates, but this source is still very limited.
b. Reasons:

 The branch network has not been expanded yet. Techcombank Branch – Ba
Trieu has 2 head offices in Tran Duy Hung and Ba Trieu, respectively; and 5
transaction offices at Ba Trieu street. The number of transaction offices is small,
which makes Techcombank Branch – Ba Trieu coverage to be low, while customers
have psychological for depositing money nearby the accommodation area, limiting
the source of money in the bank. On the other hand, the infrastructure of
Techcombank Branch – Ba Trieu is also quite small, such as the number of ATM
machines, transaction offices, this makes people afraid because it is not convenient
when participating in depositing money into the branch. Besides, utilities such as
mobile banking, Internet banking of other banks has strong utility in various fields
of payment and is much better than service of Techcombank Branch hinders
customers from participating in depositing into the branch. In addition,
Techcombank’s market share in the financial market must be mentioned to be also
small compared to other banks and other financial institutions, so people do not
complete confident when sending money as well as buying securities of
Techcombank. Therefore, the speech of fund mobilization from residents of
Techcombank Branch is slow as compared to its intrinsic value as well as compared
to other banks.

 Cost of fund mobilization are even higher than domestic banks, shown at interest
rates that Techcombank Branch – Ba Trieu mobilized are always high. This
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increases input costs, reducing the bank's profits, thus reducing the reinvestment
process from branch profits. Fierce competition from large domestic banks.This puts
second-tier banks like Techcombank Branch under great pressure. Because it's a
branch of a non-state commercial joint stock bank. Techcombank Branch is still
inferior to state-owned banks, so it is overwhelmed by other state banks in terms of
source of fund mobilization
 Outstanding Technology Techcombank is a pioneer in technology. During 26
years of service provision, Techcombank is the only commercial bank that deployed
core banking solution, provide online banking services and mobile banking.
In 2019, Techcombank prioritized the customers’ needs and focused on providing a
leading digital-platform in the market, enhancing security and transforming through
digitalization. Techcombank’s digital platform gives the customers the convenience of
making transactions at anywhere with 24/7 service system. To build up brand loyalty,
Techcombank also invests in upgrading the infrastructures with the flexible
construction, and high effective. Digital platforms, which serve for retail and corporate
customers have supplemented many new features so that customers can do more
investment and financial management activities on digital platforms.

2.2.5.3. Optimistic results

Many captivating promotion and prize programs in conjunction with flexible policies
have augmented Techcombank gain the reputation and trust from customers. The
deposit scale increased over the years with a high growth rate.
Together with, that developing services, customers network, information system and
the management of risk operations as well as the relationship with strategic partners all
harvested the optimistic results that contribute to affirm the outweighed position and
brand name of Techcombank Ba Trieu.
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CHAPTER 3 - SOLUTIONS TO IMPROVE DEPOSIT

MOBILIZATION EFFICIENCY AT TECHCOMBANK
BA TRIEU
3.1. Orientation to improve fund mobilization efficiency at Techcombank – Ba
Trieu
The business orientation of Techcombank Ba Trieu in the oncoming periods is
determined based on the development orientation of the entire system of Techcombank,
the development orientation of the country as well as Hanoi city and the recent operating
activities of the branch. The orientation of deposit fund mobilization at Techcombank
Ba Trieu is as follows:

 Implemented the improvements on the distribution system, together with

continually entrenched and enhance the efficiency of the operating activities
at the branch to satisfy the market’s demand
 The Techcombank Ba Trieu will diversify forms of deposit fund
mobilization, especially focus on the deposit which term-deposit ranged over
12 months to improve the characteristics of competitive and gain the good
reputation for its brand name on the regional network.
 Simultaneously, the branch will cast around the stable and low-payment
source of capital. The branch will continue to promote the fund mobilization
activities from residents all around the regions to balance between source of
fund mobilization and ensure for remaining the stable source of capital. From
that time on, increase the business profitability of the branch. Besides, the
branch will sketch out the specific strategies to develop the individual
customers – who are one of the major stimulus in fund mobilization business.
 The branch should perform well the business of retail banking operations
with the targeted customers as medium and small enterprises. The branch
should also promotes the lending activities to the private-economic sectors
that are eligible and operating efficiently. From then on, the branch will have
an additional revenue with regard to the service costs to ensure the betterment
of quality of service from different economy components throughout the
regions. The branch will continue to deploy effectively new-launched
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products, advertise and develop the brand name of Techcombank on the

digital and convenient platform to serve clients. Besides, the branch will
focus on developing different kind of services such as domestic and
international payment services, new projects approach, increase of cards
issued, …
 The branch will promote the business of supervision, internal control,
detection and timely prevention errors and also ensure the appropriate
business regime and sustainable development in compliance with the
Techcombank and StateBank Regulation. Besides, Techcombank Ba Trieu
will focus on developing the human resource and also building the
professional training strategies for staffs.
 Regularly educating the ideology and business ethics for staffs in the entire
system. The branch should perform well the business of emulation and
commendation, timely stimulate the staffs in the branch to promote the
collective strength and the outweighed advantages. This has many limitations
over the years. However, if these outweighed advantages luminescent, the
Techcombank Ba Trieu will develop much rapidly.
 Moreover, Techcombank should continue to modernize that makes the
premises for broadening the new-launched and attractive financial service
products to strengthen the competitiveness of the branch in service activities
at Ba Trieu branch throughout the region.
 Implemented the competitive interest rate for the money deposit and the
interest rate system. Moreover, reducing the loan amount with the high
interest rate in the market of interbank, also activating the source of capital.
 Board of Director at Techcombank Ba Trieu has put forward the orientations
to improve the efficiency of deposit fund mobilization as follows:
o Broadening variety forms of fund mobilization to attract more
customers
o Broadening the deposit from residents, financial institutions, and the
credit institutions, both domestic and foreign banks.
o Improving the attractiveness the medium and long-term deposit
capital from residents, investments from the foreign economy
institutions.
o Expanding, improving and tightening the relationship with other
economy institutions. Maintain the sustainable relationship with
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residents all around the regions, attract and create the new
relationship.
3.2. Solutions to improve fund mobilization efficiency at Techcombank – Ba Trieu
3.2.1. Extension and diversity of forms of fund mobilization
In fact, the forms of deposit fund mobilization at Techcombank are still monotonic,
however unattractiveness with the depositors, the proportion of fund mobilization in
medium and long-term period is still restricted. In order to mobilize as much as possibly
the deposit capital, the branch must diversify the forms of mobilization to attract and
satisfy customer’s needs when choosing the products of deposit capital. The forms of
fund mobilization must be flexible that is appropriate to some certain groups of
customers.
The variety forms of deposit fund mobilization at Techcombank are quite similar and
inseparable. Therefore, the branch products must have their own uniqueness. More
specifically:
Diversifying the term deposits
The implementation of forms of deposits which has different term deposits will
increase the source of capital in mid and long-term period and also diversify the forms
of capital utilization in the bank. With this kind of term-deposit savings can blend the
benefits between the banks and depositors. The individual and depository institutions at
Techcombank must be active when unexpected using the source of deposit capital.
Simultaneously, Techcombank must remain the stability of source of deposit capital.
Developing, expanding the individual savings and issuing of individual checks
This form of developing, expanding the individual savings and issuing of individual
checks will help Techcombank attract the idle source of capital from residents with
lower interest rates. Simultaneously, developing the individual bank account which is
contributed to the modernized payment process through the bank and reduce the cash
flow in consumption.
Besides developing the use of traditional cash deposit, Techcombank must take a
great care for expanding different type of deposits to satisfy the distinctive deposit needs
of residents. The brand can apply the different kinds of deposit savings mobilization
such as:
 53

Name of product Group of customers Conveniences

Term-deposit objects:The Vietnam citizen and foreign 24/07 transaction in everywhere through the
citizens which have tempory resident card over 6 months . service
Foreign customers: The term deposit is not allowed to be of e-commerce banking F@st i-Bank/ F@st
over the residual time of visa in Vietnam Mobile.
" tiền gửi phát lộc"
-Open the bank account in Vietnam. Optimize the simplicity without their presence at
Techcombank
Attractive interest rate and diversified term
deposit.

Techcombank should implement the multifarious strategies in their operating

activities, extending the services of Techcombank to satisfy the customers’ need with
Techcombank
The more frequency customers use the services, the easier Techcombank can
mobilize the source of capital because some customers deposit their money for the sake
of directing into other services of Techcombank. The kind of activities can influence
greatly on the fund mobilization, the fund mobilization abilities of Techcombank will
significantly increase.

3.2.2. Formulating the withdrawal and customer care policy for effective and
trustworthy client
The branch must formulate the efficient withdrawal and customer care policy when
diversifying types of products. This is kind of activities have enormously influence on
the success of fund mobilization strategy and the long-lasting effect with the fund
mobilization of the branch. During its operating process, the branch must have the deep
understanding about the benefits of customer in the business activities and the benefits
of depositors.
Therefore, Techcombank must have the righteous customer care policy is to remain
the amount of frequent customers, encourage the old customers to come bank branch’s
transaction and ensure the benefits for customers and the branch.
The Techcombank must actively involve in considering the projects, strategies of
manufacturing activities of enterprises with aim to augment enterprises get over their
difficulties and create the long-term relationship.
Techcombank can classify customers to have a different and appropriate treatment.
Besides, the Techcombank must propagate on social facility and the customers
conference with the aim to introduce the existence of Techcombank, and make the
customers clear about the benefits of Techcombank services as well as the actual
 54

operating activities of Techcombank …. By that way, Techcombank can catch up with

the customers’ requirements and psychology to satisfy optimally the requirement of
customers.
On the other hand, Techcombank must have the ability to determine the group of
customers that you serve and transact. Which group of objects the Techcombank
provide their range of products? Which market can Techcombank infiltrate with? The
Techcombank focus mostly on lending the small and medium enterprises, the
households and individuals. The branch obtains the source of capital primarily from
residents. The Techcombank can consider to broaden the fund mobilization activities of
merchants from markets … This will affect gigantically fund mobilization activities of
the branch.
The branch must have their own program to propagate and advertise to attract more
customers. The branch can not only advertise the product of deposit fund mobilization
on the social media, but the branch can also distribute the leaflets directly to customers
with the help of bank tellers to make customers understand about the new products of
the branch. Moreover, the branch should involve in the conference and forum to affirm
its position of Ba Trieu branch.
Besides, the customer care service of Techcombank to solve all customers’ feedbacks
and complaints about the products and propagate to customers all the necessary
information about the products. The customer care “ before and after” is also very
imperative. This will attract customers with the caring and professional of the branch as
well as increase the preference of customers. Together with, this will contribute to fuel
the amount of branch’s customers in the future.
In each of interest-earned and principal payment period, the branch should send the
gifts to customers. In each of holiday occasion, the branch should also send the
calendars and cards to traditional and important customers of the branch. This kind of
activities means so much to customers. Moreover, it can help them to recognize an
enormous care of the branch towards customers. In addition, the branch carries out the
survey card and feedback of customers about the services and products of the branch as
well as their wish and improvements about the future products of Techcombank .
This kind of activities will be gigantically effective to the branch before deploying
the new stage of fund mobilization. The branch, which carries out the survey cards will
attract customers and express the improvements and the customers’ feedback
 55

recognition. The customers would feel themselves meaningful with the branch,
therefore, this will create the trust and brandname of Techcombank in long-term.
3.2.3. Training enthusiastic staff with highly qualified and wholeheartedly to serve
customer
Throughout the operating process of the branch, the human is one of the most
important factors. The strategies of fund mobilization are all setting in and carrying out
by the personnel of staffs. The success depends greatly on the staff’s qualifications.
Together with, training the staffs’ professional qualifications are necessary to improve
frequently because it helps to develop the qualifications and improve the creativity of
customers to satisfy with the new working conditions.
Techcombank continuously encourages and appoint the personnel of staffs to
participate in training sessions that Techcombank offers to educate their staffs. The
continually improving the staffs’ qualification will help Techcombank to satisfy the
customers’ needs better and improve the efficiency of operating activities of the branch.
Besides improving the professional qualifications, the bank teller must have the
attitude of missionary zeal, polite to customers. The kind of staffs make great
contribution to the image of the bank. Therefore, Techcombank must encourage staffs
to communicate with customers in appropriate ways. The staffs must instruct customers
prudentially to save the time of customers. Once customers satisfied when depositing
money in Techcombank, they will deposit their money in the next time and introduce
their friends and relatives to use the service of Techcombank. Techcombank must
arrange appropriately the positions staffs suitable with to make staffs take optimally
advantages of their capacities in their job.

3.2.4. Other solutions

Expanding the operating activities network of the branch
The commercial banks are now very interested in network expansion. However,
Techcombank customers cannot transact quickly, conveniently and normally take a
long time to complete the transaction. In order to encourage customers to deposit
money, branches need to quickly deploy banking services, reduce customer’s waiting
times through appropriate network development. The branch should expand more
transaction office at the crowded places throughout the regions. This will help the
branch exploit the large source of capital.
 56

Actively completing the payment facilities

The completion of payment facilities will help branches expand relationships with
financial institutions and businesses. This means that the bank must constantly improve
business processes to ensure the benefits and convenience for customers.
Firstly,
In order for customers to understand about the bank and choose a good bank for their
transactions, branches need to announce their business results as well as their financial
capacity through the mass media to create conditions for customers to understand about
their bank.
Always direct Techcombank’s activities to the local socio-economic goals, at the
same time, enlist the support of local authorities.
Secondly,
It is necessary to expand and improve service quality in order to serve customers in
the best way and to attract them to participate in transactions at the bank. At the same
time, they also enjoy the benefits that the bank brings about.
On the other hand, the operating time of the bank is not reasonable for all depositors.
Therefore, the bank should have solutions to work overtime, increase transaction time
with customers in order to satisfy customers' needs in mobilizing capital.
3.3. Some suggestions to improve the deposit fund mobilization efficiency at
Techcombank – Ba Trieu
Head Office Over the years, Techcombank has issued many guiding documents on
law on credit institutions, and guidelines and orientations on fund mobilization policies
for Techcombak branch. However, Techcombank also needs to develop a capital
mobilization policy to be more reasonable and have appropriate and flexible policy
implementation measures with the operation characteristics of each branch. Diversify
the forms of fund mobilization and apply the interest rates flexibly to suit the needs and
conditions of customers and enterprises.
Techcombank needs to have the training and development plans for human
resources, which are available in the future to its future needs . The role of managers is
very imperative. Therefore, Techcombank needs to open training course on
management and administration skills for key staffs, potential officials in order to
improve the quality of fund mobilization. In addition, to issuing Directive documents,
 57

Techcombank also has to strengthen inspection and control on fund mobilization at

Techcombank branches. Re-examination of loans account with great values or conduct
of sampling test to ensure credit policy use is complied with the collateral is
implemented legally and in accordance with the regulations. Thereby, helping
Techcombank to set policies and regulations on credit process and credit guarantee are
in line with reality and at the same time, improve the efficiency of fund mobilization at
Techcombank Branch.
Besides, Techcombank Ba Trieu is a quite young branch. Therefore, it is
recommended for Techcombank to generate favorable conditions to staff rotations, so
that the potential officials of Techcombank branch – Ba Trieu may be rotated from time
to time to other branches or headquarters to learn more knowledge and skills to serve
the job requirement. As well as the rotation of the number of good and experienced
staffs from head offices to other branches. Since then, the branch’s employees are
continuing on-the-job learning to improve capacity and skills in problem-soving job
 58

CONCLUSIONS
In chapter 3, the author presents the general orientation development of Techcombank
Branch – Ba Trieu as well as the branch's plans of fund mobilization from deposits in
2024. Based on the branch's plan, based on the limitations in analyzing the efficiency
of deposit mobilization at branches in 3 years from 2018-2020, the author has proposed
solutions as well as recommendations to implement these solutions ; thereby improving
the efficiency of capital mobilization at Techcombank Branch – Ba Trieu.
 59

REFERENCES
Monetary Policy Strategy, Frederic Mishkin
Economic of Money Banking, Frederic Mishkin
Relationship Banking, Dwight S. Ritter
http://images1.cafef.vn/Images/Uploaded/DuLieuDownload/2020/TCB_20CN_
BCTC_HNKT.pdf
http://images1.cafef.vn/Images/Uploaded/DuLieuDownload/2019/TCB_19CN_
BCTC_HNKT.pdf
http://images1.cafef.vn/Images/Uploaded/DuLieuDownload/2018/TCB_18CN_
BCTC_HNKT.pdf
https://www.techcombank.com.vn/khach-hang-ca-nhan/tiet-kiem/tien-gui-tiet-
kiem/tiet-kiem-thuong
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APPENDICES