ACADEMY OF FINANCE UNIVERSITY OF TOULON

PROJECT REPORT
Degree: Professional degree in Banking-Insurance
Topic: DEVELOPING A CONSUMER LOAN PROGRAM FOR INDIVIDUAL
CUSTOMERS IN VIETINBANK

Group: 7
1. Nguyễn Hồng Phương
2. Trà Ngọc Trâm
3. Trần Thị Ngọc Ánh
4. Lê Ngọc Trà
5. Nguyễn Phương Anh
6. Trần Ngọc Sơn

Tutor UT: Ms. Marie Josée Cambreling

Tutor AOF: Ms. Nguyễn Thị Minh Uyên
Company/Bank representative: Mr. Phạm Đại Dương
 Hanoi, 2021-2022

GUARANTEE

Our student group hereby declares that this internship report is our own work. We do not copy
any previous reports, data from the sources specified in the article. The students must practice
at the registered internship according to the schedule. Signature and correct seal of the bank
where we did the internship. If there are any problems, we would like to take full
responsibility and be disciplined by the faculty and the school.

Group of authors

(Sign, write full name)

 Table of Contents

THE OPENING CHAPTER....................................................................................................1

CHAPTER 1..............................................................................................................................3

OVERVIEW OF VIETINBANK – BAC QUANG BRANCH AND INTRODUCTION

OF RESPONSIBILITIES AT THE INTERNSHIP LOCATION........................................3

1.1. Overview of Vietinbank - Bac Quang branch in Ha Giang province........................3

1.1.1. History of formation and development......................................................................3

1.1.2. Organizational structure............................................................................................3

1.1.3. Business results of Vietinbank, Bac Quang branch in the period of 2018-2020.......6

1.2. Introduction of internship task...................................................................................10

1.2.1. Purpose of the internship.........................................................................................10

1.2.2. Internship Mission...................................................................................................10

1.2.3 Internship Expectations............................................................................................11

+ Reaching the set targets, successfully developing a home loan package for individual
customers...........................................................................................................................11

+ Learn some skills at work...............................................................................................11

+ Seriously practice at the unit, specifically: Vietinbank, always keep a disciplined

manner...............................................................................................................................11

1.2.4 Table of assignment of specific tasks.......................................................................11

CHAPTER 2............................................................................................................................13
THE CURRENT SITUATION OF CONSUMER LIVING ACTIVITIES FOR
PERSONAL CUSTOMERS AT VIETINBANK - BRANCH BRANCH AND RESULTS
OF IMPLEMENTATION......................................................................................................13

2.1. Implementation plan of the task.................................................................................13

2.1.1. Implement specific internship tasks introduced in 1.2.2.........................................13

2.1.2. Evaluation of internship results...............................................................................14

2.2. Actual situation of personal consumption loans at Vietinbank - Bac Quang

branch...................................................................................................................................15

2.2.1. Consumer loan process at Vietinbank - Bac Quang branch....................................15

2.2.2. Consumer loan results.............................................................................................17

2.3. Evaluating loan effectiveness through customer surveys.........................................18

2.3.1. Sampling..................................................................................................................18

2.3.2. Result.......................................................................................................................19

CHAPTER 3............................................................................................................................21

SOME SOLUTIONS TO IMPROVE THE EFFICIENCY OF CONSUMER LOAN

ACTIVITIES FOR INDIVIDUAL CUSTOMERS OF VIETINBANK-BAC QUANG
BRANCH.................................................................................................................................21

3.1 General assessment of the effectiveness of consumer loans for individual customers
at Vietinbank - Bac Quang branch....................................................................................21

3.1.1. Strength....................................................................................................................21

3.1.2. Weakness.................................................................................................................22

3.1.3. Reason.....................................................................................................................22

3.1.4. Lessons learned from experience............................................................................23

3.2. Some solutions to improve the efficiency of consumer lending activities for
individual customers at Vietinbank - Bac Quang branch...............................................23
 3.2.1 Effective development of marketing activities.........................................................23

3.2.2. Improve the quality of human resources.................................................................24

3.2.3. Improve the quality of customer service.................................................................24

3.2.4. Improved post-lending inspection and control........................................................26

3.2.5. Market valuation of collateral..................................................................................26

3.2.6. Improve customer financial appraisal capacity.......................................................26

CONCLUDE............................................................................................................................28

LIST OF REFERENCES (added later).....................................................................................29

LIST OF ABBREVIATIONS (TO BE ADDED LATER)

LIST OF TABLES (added later)

 THE OPENING CHAPTER

1. Urgency of the topic

Currently, more and more people are in need of loans from banks for consumer spending or to
buy cars, however, because the loan process is still complicated and not really popular, many
customers are still afraid of getting a loan. Concerned about the costs incurred. Since the end
of 2019 when the covid -19 epidemic began to spread in many countries around the world,
including Vietnam, workers as well as domestic businesses have suffered heavy consequences
due to the health of the economy. weak. Many workers have lost their jobs or have their
wages reduced, so the demand for loans for consumption purposes is increasing.
Understanding this situation, Vietinbank - Bac Quang Branch has increased the expansion of
consumer loans to individual customers to meet the needs of the market and bring business
benefits to the bank. During the internship at Vietinbank - Bac Quang Branch, our intern
group realized the advantages and disadvantages of consumer lending for individual
customers, that's why we decided to Choose the topic "Developing consumer loan packages
for individual customers at Vietinbank - Bac Quang Branch"

2. Object and scope of research

Research object: Consumer lending activities for individual customers at Vietinbank - Bac
Quang branch.
Research scope:
+ Spatial scope: Research at Vietinbank - Bac Quang branch.
+ Time range: The data used in the study are from 2018-2021.
2.1. Research question
- Qualitative question:
+ How to determine the research sample of the report is conducted?
+ How has the loan situation at Vietinbank changed after 2019?
- Quantitative question:
+ What are the limitations of personal consumption loans from 2018 to now and why?
+ Will the development of consumer loan packages for individual customers at Vietinbank
affect the bank's revenue

2.2. Research Methods

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 The study uses statistical methods, analyses, and compares data, from which to draw
conclusions about the current situation, in addition, mixed methods are also used to make
assessments and propose solutions overcome.
• Data collection method: create a survey form for consumer lending needs of
customers at Vietinbank and collect about 130 samples for analysis.
• Using statistical methods on Excel and using Stata to analyse the collected data.

3. Thesis structure
In addition to the introduction, conclusion, list of abbreviations and list of tables, the
thesis consists of 3 main parts:
Chapter 1: Overview of Vietinbank - Bac Quang branch and introduction of assigned
tasks at the internship site.
Chapter 2: Actual situation of consumer lending activities for individual customers at
Vietinbank - Bac Quang branch and results of internship.
Chapter 3: Some solutions to improve the efficiency of consumer lending activities for
individual customers of Vietinbank - Bac Quang branch.

CHAPTER 1
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 OVERVIEW OF VIETINBANK – BAC QUANG BRANCH AND INTRODUCTION
OF RESPONSIBILITIES AT THE INTERNSHIP LOCATION

1.1. Overview of Vietinbank - Bac Quang branch in Ha Giang province

1.1.1. History of formation and development 

Vietnam Joint Stock Commercial Bank for Industry and Trade was established on March 26,
1988, based on separation from the State Bank of Vietnam under Decree No. 53/HDBT of the
Council of Ministers.
30 years of construction and development of Vietinbank

Phase I (from July 1988 - 2000): Building and transforming from a one-tier banking system
to a two-tier banking system: Industry and Trade Bank (now known as Industry and Trade
Joint Stock Commercial Bank) Vietnam - VietinBank) was formed and put into operation.
Phase II (from 2001 to 2008): Successfully implemented the restructuring project of the
Bank of Industry and Trade on debt settlement, organizational model, mechanisms and
policies and business activities.
Phase III (from 2009 to 2013): Successfully implemented equitization, vigorously
innovated, and developed breakthroughs in all aspects of banking activities.
Phase IV (from 2014 to present): Focus on building and implementing strategic governance,
making breakthroughs in technology, continuing to comprehensively renovate banking
operations, and promoting associated business growth. with the guarantee of efficiency,
safety, and sustainability.

The process of construction and development of Vietinbank- Bac Quang branch

Vietinbank - Bac Quang branch in Ha Giang province is present in Ha Giang province and
officially operated independently since 2009, based on separation and is a unit in the branch
system of Vietnam Joint Stock Commercial Bank for Industry and Trade of Vietnam.
In the early days of establishment, the branch organization had only 7 professional
departments and 95 employees. Up to now, the branch has grown into 4 large transaction
offices throughout Ha Giang city with more than 200 staff and workers. 
With a network of points throughout the city, VietinBank in Ha Giang provides modern and
fast banking products and services with competitive interest rates and service fees, with
multiple utilities to meet the requirements of every customer. customers, expand business

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opportunities, strengthen cooperation between credit institutions and other organizations,
gradually improve the branch's reputation and brand in the whole market.
After nearly 10 years of construction and development, VietinBank - Bac Quang branch leads
the banking industry in credit investment for corporate customer segments, labor productivity
and operational efficiency; position 2nd in terms of scale of operation in Ha Giang province.

1.1.2. Organizational structure 

General organizational structure of Vietinbank

Comment : The organizational structure of Vietinbank Bac Quang branch is clearly

divided in order to specialize in each banking function and to ensure efficient business
operations. During the internship and research process, consumer lending for individual
customers of Vietinbank Bac Quang branch is a popular service and is a good topic and
mainly for research and thesis work.

Structure of Service & Marketing Department

Directly perform transactions with customers, market banking products and services,

receive customer feedback on products and services, and propose improvement methods to
constantly meet customers' needs. Take care of customers so that products and services are
maximized and bring profits and prestige to the branch. 

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 Marketing Director: Decide the direction of marketing campaigns. Also
responsible for the success or failure of the campaigns. The responsibility of the
head of the marketing department is to plan, strategize, manage spending,
allocate budget appropriately, set KPI targets for personnel and be accountable
to the Board of Directors. Experienced, knowledgeable in certain
communication and advertising channels, able to manage, evaluate and support
subordinates when they face difficulties at work.
 Marketing management department: Planning marketing research. Decide on
the target market for the business. Planning a marketing strategy. Decide on a
product category. Create product development programs. Formulate pricing
policies. Set up advertising and promotion programs.

 Advertising and promotion department: advertising, promoting products,

selling promotional prices, attracting customers' attention, selling separately to
customers as well as contacting many methods in polishing products, improving
brand.

 Marketing research department: identify needs, wants and changing trends in

the market and customers. Closely linking market research activities with
departments in design, standardization and development of new products and
services to help provide better products to the market.

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  Product management and new product development: implement product
plans, review their implementation, forecast results, and make
adjustments. Implement a competitive strategy for the product, draft a marketing
plan and forecast sales, collaborate with advertising agencies to launch
advertising campaigns, motivate the sales force and distributors. distribute
product support, analyze product situations, and recommend product
improvements to meet changing market needs.

Personnel size:

Table 1.1 Labor structure

STT  Targets Amount of people Proportion (%)

first Total number of employees 200 100
2 Labor with long-term contract 190 95
3 Labor with short-term contract ten 5
4 Laborers with university degrees, above university 200 200
5 Technical staff 7 3.5

Source: Vietinbank Human Resources Department, Bac Quang branch

The total number of employees of the branch is nearly 200 people, the structure is as follows:
- The number of employees with a university or university degree accounted for 100%.   
- The number of employees who are technical workers is 7 people, accounting for 3.5%.   
- The number of long-term contract employees is 190 people, accounting for 95%.   
- The number of short-term contract employees is 10 people, accounting for 5%.   

The Branch has built an increasingly youthful, friendly, and dynamic working
environment at the Branch, creating development motivation for each employee and
contributing to positively changing the perception of customers towards the company. with
staff.
Gather classes of young cadres and experienced flexible and sensitive management
and mature cadres. 
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 Pay attention to the aspirations of employees and understand them to create a strong bond
between the branch and the employees. All staff are entitled to present their ideas and
initiatives, on that basis, the Board of Directors will consider and create favorable conditions
for staff to promote their creativity to the fullest, apply effective in practice.
The attractive salary regime is an important factor to help attract employees to the bank,
the working environment strongly exploits objective and subjective factors to help young
officers have the capacity to strive and work. wholeheartedly. There is no situation where
senior officials enjoy high salaries and are assigned to key positions. The branch has a regime
and salary bonus based on work performance, staff have many initiatives, capabilities and
great contributions. 
In addition to fostering work, the branch also focuses on extra-curricular activities of
employees to improve working spirit and comfort after stressful working hours. Typical
activities are hygiene and safety contest, art show, competition between departments.

1.1.3. Business results of Vietinbank, Bac Quang branch in the period of 2018-2020 

Since its establishment and development, Vietnam Bank for Industry and Trade, Bac
Quang - Ha Giang branch has made full use of its strengths to do business
effectively. Thereby creating the trust and satisfaction of many customers by the diversity and
abundance of services. Business results are summarized through: 
1.1.3.1. Some key business performance indicators 

It can be said that the period 2018 - 2020 is a period when many changes are recorded
in the operation of the Vietnamese economy in general and the banking industry. The
operation of enterprises stagnates, many enterprises go bankrupt; deposit interest rates
fluctuated continuously, sometimes reaching a record level, more than 20%/year and then
falling to less than 10%/year; bad debt in the banking system increased sharply; many
commercial banks operate inefficiently and at a loss. These difficulties have really had a great
impact on the business activities of the entire banking system, as well as of Vietnam Joint
Stock Commercial Bank for Industry and Trade of Vietnam. To have a more in-depth view of
the actual operation of the branch, we have the following table of data:
 

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 TABLE 1.2. OPERATION SITUATION OF THE BANK
VIETINBANK BAC QUANG PERIOD 2018 - 2020
Unit: billion VND

Content 2018 2019 2020 Spread 2018/2019 Spread 2019/2020

Amount of Proportion Amount of Proportion

money (%) money (%)

Total 4.043 7.518 11,199 3.475 0.54 3,681 0.67

revenue

Total cost 59.1 56.3 85.39 (2.8) 1.04 29.09 1.52

Profit 100.2 110.8 150 10.6 1.11 39.2 1.35

before tax

CIT 14.4 12.30 15.75 (2.1) 0.85 3.45 1.28

Profit after 111.7 110.98 88.65 (0.72) 0.99 (22.33) 0.79

tax

Source: Vietinbank's business results report, Bac Quang branch

In the past 3 years, period 2018-2020, Vietinbank Bac Quang branch has achieved
certain successes in expanding the scale of operations, increasing total revenue, and reducing
total costs to achieve this goal to get high profits. Total revenue of the branch continuously
increased sharply during this period, from VND 4,043 billion in 2018 to VND 11,199 billion
in 2020, nearly 3 times in just 3 years. In 2020, the branch's total revenue has increased
dramatically, from VND 7,518 billion in 2019 to VND 11,199 billion in 2020 (an increase of
more than 0.67 times). From a subjective point of view, this result is due to the branch's
incentive policy, continuous expansion of business activities, increased attraction and
strengthening of customer relationships, and preferential policies. variety for each
customer. The solid financial capacity and increasing prestige of the entire system of Vietnam
Joint Stock Commercial Bank for Industry and Trade in general and Bac Quang branch also
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make customers always trust and stick to business cooperation. In terms of objective reasons,
the period 2018 - 2020 is also the period when Bac Quang province promotes the
implementation of policies to recover and revive the post-crisis economy; increase investment
attraction and encourage comprehensive development of the economy, especially in the
industry - service sector. The demand for capital is therefore constantly increasing and the
increase in the total revenue of the Branch is inevitable.
While the Branch's total revenue always tends to increase and is relatively stable, the
Branch's total expenses are volatile and unstable. In the period of 2018 - 2019, the total cost
of mitigation is not more than 2.8 billion VND. But in the period of 2019 - 2020, the total cost
increases, even in 2020, the cost increases suddenly (85.39 billion VND, 1.5 times higher than
in 2019). The reason for such a sudden change is because 2019-2020 has been recorded as an
explosive year of bad debt in the banking system due to the Covid epidemic. Prolonged
difficulties in production and business made many enterprises unable to pay overdue debts,
leading to the phenomenon of interest evasion and debt evasion. Therefore, the branch must
deduct a large amount from the total revenue to make provision for risks. This is the main
reason why the total cost in 2020 has escalated dramatically compared to previous and
subsequent years.
Although total revenue was constantly increasing, there were many fluctuations in
total expenses, making the Branch's total profit before tax affected. In general, in the period
2018 - 2020, the branch's profit after tax tends to decrease by 111.7 billion VND in 2019 to
88.65 billion VND. Obviously, fluctuations in total expenses had a profound effect on
fluctuations in the Branch's total profit after tax.
Although the three targets of revenue, cost and profit are not enough to provide a basis
for accurately and comprehensively confirming the operational efficiency of Vietinbank, Bac
Quang branch, it partly shows us that the branch has had certain successes in maintaining
operations, ensuring the growth target in profit. In the context that the world economy in
general and the national economy are still facing many difficulties during the epidemic crisis,
it can be said that Vietinbank of Bac Quang branch is always worthy of being one of the most
reliable partners of foreign banks. individuals, businesses, and organizations throughout the
province, play an important role in developing the province's economy.
1.1.3.2. Market share and main business products

* Market share :

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 The branch's total mobilized capital in 2020 reached more than VND 2,751 billion, up
16% compared to the beginning of the year; total credit balance reached nearly VND 4,400
billion, up 29% compared to the beginning of the year; service charge collection reached
98.6% of the plan; profit increased by 47% compared to 2019.

Also at the Conference, the Branch honored collectives and individuals with excellent
achievements in business activities in 2020, launching the emulation movement in 2021. In
2021, the Branch promoted business activities. with the main task: Control well the growth
rate and improve the quality and efficiency of credit investment; focusing on promoting
capital development and increasing service fee collection in line with VietinBank's
orientation, striving to achieve a profit growth of at least 15% by the end of 2021, actively
contributing to VietinBank's sustainable development.

* Main business products:

Personal customers: savings deposits, bank card services, loans, foreign currency
trading, valuable papers trading, insurance, digital banking, and other services.

1.1.3.3. Consumer lending activities for individual customers of Vietinbank - Bac Quang
branch.

Types of personal loan products of Vietinbank include the following items:

Car loan: the loan limit is based on the value of the car and collateral. Car loan up to
100% of car value, preferential interest rate of 8.99% for the first 6 months, 9.99% for the first
12 months with a reduced interest rate of 0.5% if customers buy insurance from Vietinbank.
For used cars that accept car loans with a period of up to 5 years, the loan period is up to 6
years, which is higher than that of other banks. Specifically, Sacombank only gives customers
a loan period of 5 years.

Student loans: Loans up to 99% of capital needs. Loan terms are as follows: Credit
limit contract: from 12 months to 120 months but not exceeding the length of stay (the length
of stay is determined according to the letter of recommendation/accreditation of the training
unit).

Consumer loans mortgage real estate: maximum loan limit of 1 billion, but not more
than 70% of the value of the collateral.

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 Unsecured consumer loans: simple loan procedures, no collateral or deposit required,
maximum loan amount is up to 7 months of actual income and does not exceed VND 200
million, loan period operating from 6 months to 48 months, depending on the financial ability
of the customer. Interest calculated on actual outstanding balance v is fixed throughout the
loan term. Fast approval time, maximum 02 working days.

1.2. Introduction of internship task

1.2.1. Purpose of the internship

This is an important step in the training process at the Academy of Finance -
International Training System, this step helps students:
+ Have a realistic view of future work
+ Practice discipline when going to work
+ Professional labour skills training
+ Helping students can practice after returning to school. Increase the ability to apply
theory into practice. On that basis, improve knowledge into practice in the most authentic way
Through this internship, students can be exposed to an environment that includes
colleagues, seniors. This directly helps students in the process of integration in the office
environment.
Internship is also a condition for students to get closer to a university degree, helping students
to have a new perspective, a new step in the process of training at organizations and
companies where students practice. This also helps students maximize the intelligence and
flexibility of each individual intern…

1.2.2. Internship Mission

*The main task:
+ Accept work from the bank
+ Survey the local market;
+ Analyzing the market, data from financial statements;
+ Find out the main loan package trends;
+ Make detailed plans;
+ Perform test implementation of the program;
+ Experience in the test run;
+ Reviewing possible errors and risks;
Official program.
*Other duties:
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+ Focus on completing well the assigned tasks at the bank;
+ Be on time, obey the bank's rules
+ Comply with the discipline available at the banking institution;
+ Ensure that individual interns can access jobs at the bank.

1.2.3 Internship Expectations

+ Reaching the set targets, successfully developing a home loan package for individual
customers.

+ Learn some skills at work

+ Seriously practice at the unit, specifically: Vietinbank, always keep a disciplined manner.

1.2.4 Table of assignment of specific tasks

Internship group at the position of individual customer relations specialist in the personal
customer department. This position needs to perform a number of tasks such as:
- Introduce and cross-sell products and services to individual customers such as deposits,
loans, payments, cards, etc.
- Receive dossiers, coordinate with other professional teams and departments to complete
dossiers, provide products and services to customers.
- Customer care, marketing, market share development, brand protection of Vietinbank
- Perform other tasks assigned by the Sales Team Leader.

N.o Name Internship position Mission

1 Nguyễn Hồng Phương Customer relationship Research on banking

specialist products and services

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2 Trà Ngọc Trâm Customer relationship Find out about the current
specialist situation of consumer loans
at Vietinbank through
internal documents

3 Lê Ngọc Trà Customer relationship Create questionnaires and

specialist collect information about
customers' loan needs

4 Trần Thị Ngọc Ánh Customer relationship Analyze and process data
specialist from collected survey forms

5 Nguyễn Phương Anh Customer relationship Study the profiles of potential

specialist customers, learn how to score
credit for customers

6 Trần Ngọc Sơn Customer relationship Contact customers and plan

specialist to introduce a suitable loan
package for them

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 CHAPTER 2
THE CURRENT SITUATION OF CONSUMER LIVING ACTIVITIES FOR
PERSONAL CUSTOMERS AT VIETINBANK - BRANCH BRANCH AND RESULTS
OF IMPLEMENTATION

2.1. Implementation plan of the task

2.1.1. Implement specific internship tasks introduced in 1.2.2.

Internship period at the bank starts from November 8, 2021 - January 12, 2022. Each week,
the group will send 3 people to practice at the bank to familiarize themselves with the
business and collect information to make reports.

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N.o Time Mission Responsiblilities

1 8/11/2021 - - Get acquainted with the working Phương, Trà, Trâm

14/11/2021 environment and colleagues
-Learn about Vietinbank's products
and services

2 15/11/2021- -Get to know the working Ánh, Phương Anh,

21/11/2021 environment and colleagues Sơn
-Read loan contract samples and learn
about the status of consumer loans at
Vietinbank

3 22/11/2021 - -Study the profiles of some customers Phương, Trà, Trâm

28/11/2021 who have a need for consumer loans
that have been appraised and learn
how to appraise and evaluate
customers in general.
- Observe how to contact and talk to
customers coming to borrow money
and collect information

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4 29/11/2021 -Create a survey to collect information Ánh, Phương Anh,
-5/12/2021 about customers who need loans for Sơn
personal consumption.
-Introduce to customers about
consumer loan packages

5 6/12/2021 - -Statistical data from surveys and Phương, Trà, Trâm,

19/12/2021 analysis, shaping potential customers Ánh,
for personal loan packages
-Plan to introduce suitable loan
package

Phương Anh, Sơn

6 20/12/2021- -Coordinate with sales department to

26/12/2021 develop marketing plan, create
attractive loan package program for
individual customers-

7 27/12/2021- -Perform assigned tasks at the bank Phương, Trà, Ánh,

9/1/2022 -Write internship report Phương Anh

2.1.2. Evaluation of internship results

It can be said that the internship process at Vietnam Joint Stock Commercial Bank for
Industry and Trade has given the group valuable opportunities to apply the theoretical
knowledge learned in the subjects into real work. In addition, the group also had the
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opportunity to observe, learn and experience professional working style under high work
pressure, which requires agility, flexibility but absolute accuracy. Although the 2-month
training period is not long, but thanks to the dedicated guidance of Nguyen Minh Nghia and
other brothers and sisters - Joint Stock Commercial Bank for Industry and Trade, Bac Quang
branch, the group has learned a lot of things about soft skills, technical skills. communication
skills, as well as job handling skills, contribute to improving and perfecting their knowledge.
Being able to work in a real working environment, gain work experience, participate in and
become a part of perfecting the product helps my team accumulate a lot of valuable
experience that my group has never had. opportunities to approach, especially the spirit of
serious attitude towards work and responsibility for the assigned work. Moreover, the learning
process has helped the group realize the difference between theory and reality, and the
methods to deal with those situations flexibly and effectively. Indeed, this internship period
has helped my group gain profound lessons so that they can orient themselves for the future as
well as build self-improvement plans in their final year at Academy of Finance. - Toulon.
2.1.2.1. Qualitative criteria

In general, the intern group fully and punctually participated in the registered
internship sessions. The level of task completion is at a good level, specifically as follows:

- Consulting customers and introducing consumer loan products and services: During the
internship, the team successfully introduced customers to use consumer loan packages at
banks.

- About handling customer records, assessing scores for loan applications and solving
assigned tasks at the bank: The intern team understood the basic steps to process documents
and provide support. received a good rating from the management.

- Attitude and customer care skills: improved after the internship period and received many
good feedbacks from customers.

2.1.2.2. Quantitative indicators

The level of completion of the assigned work of the group is good: Completed the
assigned tasks at the bank and made some useful suggestions.

- About working time: guarantee the commitment of the internship period at the bank (100%)

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- Main job of introducing consumer loan packages to individual customers at the bank:
reaching 80%, successfully selling loan packages to 15 customers

- Taking care of customers and coordinating with other departments to develop marketing
plans: reaching the target of 80%

2.2. Actual situation of personal consumption loans at Vietinbank - Bac Quang branch.

2.2.1. Consumer loan process at Vietinbank - Bac Quang branch.

2.2.1.1. Conditions for consumer loans at Vietinbank:

To get a consumer loan at VietinBank, customers need to meet some of the following
conditions:

 Customers are Vietnamese citizens, aged from 21 to 58 years old

 Are working at units or organizations that pay wages through VietinBank or have an
association agreement with the bank
 Having a stable income from 3.5 million VND/month to ensure the ability to repay on
time
 Has the purpose of using legal capital sources, feasible sources of debt repayment
 Satisfy other conditions as prescribed by VietinBank

2.2.1.2. Consumer loan process:

* Receipt of customer's profile:

After clarifying the loan purpose and preliminary verification of the customer's financial
ability, the credit officer will help guide you on how to make the appropriate application.
Because each bank has its own requirements as well as the necessary paperwork requirements
of each loan product. However, basically, a set of loan documents will include:

+ Customer information:

 ID/Passport
 Household book/documents proving permanent residence
 Marriage certificate (if married)

+ Loan profile:

 Loan application form and capital use plan

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  Documents proving the purpose of the loan
 Proof of income documents: employment contract, salary confirmation,...
 Evaluation of conditions for personal loans

This is the most important step of the personal consumption loan process in order to
verify the accuracy of the documents the customer has submitted to the bank and serve as the
basis for the decision on whether to lend or not and that decision. Whether it is correct or not
is based on the results of this evaluation step.

Checking documents and loan purposes: The Bank conducts a complete, authentic, legal
and valid check of loan documents through the agency that issued them or through
information channels.

Investigate and collect information about borrowers: Credit officers will go to practice at
the customer's family and business place to find out information such as: family, loan
purpose, sources of income, performance of obligations to the state and localities,...

Information verification: This verification can be done through the following sources: the
customer's previous and current loan records, the Credit Center (CIC), the customer agencies
directly applying for the loan. (People's Committee, tax agency), customer banks have used or
are borrowing capital there.

Analysis and appraisal of loan customers: Learn and analyze the legal status and
capacity, personnel behavior capacity.

* Credit analysis:

Credit analysis is a step in the personal loan process to identify risk and measures to limit
risk. The content of credit analysis usually includes: collecting and analyzing information to
determine the creditworthiness, legal status, financial ability and solvency of the borrower in
the past, present and future. future.

Today, the competitive environment requires the Bank to conduct a quick, compact and
economical credit analysis process.

* Approval for personal consumption loans:

After reviewing the source of capital, payment conditions, methods and loan interest
rates, the consultant will submit the application and appraisal report to the review officer for

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inspection and review. can be re-evaluated (if necessary), then submitted to the director for
approval.

At that time, the director will base on the application file and appraisal report to consider
whether to lend or not. If the application is approved, the credit officer will notify the
customer and conduct a meeting to sign an unsecured consumer loan contract.

* Contract signing and disbursement:

The next step in the personal loan process is signing a contract and disbursing funds.
Credit contract is a written document that records the agreement between the customer and
the Bank. Both parties are responsible for complying with each other's requirements. The
main content of a credit contract usually includes:

 Customers: full name, address, legal status

 Purpose of using the loan
 Amount of credits
 Interest rates
 Credit period
 Types of guarantees
 Payment conditions

After being approved by the director, the accounting department is responsible for
disbursing consumer loans to customers. However, the credit officer will continue to monitor
whether your loan is used for the right purpose. If there are signs of fraud or appropriation, the
bank has the right to withdraw the loan at any time.

* Collect debt and issue a new credit judgment:

This is the final step in the personal loan process. The collection of debt when it is due is
the bank's monthly job including interest and a part of the loan principal. This amount has
been agreed and clearly stated in the loan contract signed previously.

In some cases of late payment or insufficient payment, the bank will consider the
customer's financial ability to make appropriate new credit judgments. One thing to note is
that anytime a customer has not fully paid off the loan, then the personal loan process is not
over.

2.2.2. Consumer loan results

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 Table 2.1. Income results from lending activities to individual customers

Unit: million VND

Targets 2019 2020 2021

Income from lending to individual customers 26.611 41.324 57.596

Total income 64.125 90.236 117.759

Ratio of income from personal loans to total income 41,50% 45,80% 48,91%
Source: Report of business results in 2019, 2020, 2021

In general, income from lending to individual customers accounts for a steadily

increasing proportion over the years. Income from lending to individual customers in 2019
was VND 26,611 million, but by 2021 this index has doubled to VND 57,596 million,
proving that Vietinbank Bac Quang branch has focused more on individual customers and
loan packages to attract customers.

Table 2.2. Ratio of bad debt ratio for individual customers

Unit: million VND

Targets 2019 2020 2021

Total outstanding loans to individual customers 174.672 235.993 298.507

Loans per capita 36.060 40.000 44.000

Total bad debt for personal loans 979 1.213 1.399

Bad debt ratio for individual customers 0,56% 0,51% 0,47%

Source: Report of business results in 2019, 2020, 2021

Growth of consumer lending scale:

- Regarding loan balance: The branch needs to maintain this growth at a more stable and firm
level in the coming time.

- Number of customers: The number of individual customers with consumer loans has
increased over the years, proving that the Branch has done well in developing and expanding
consumer lending.

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 - About average outstanding balance of customers: The indicator of average outstanding
balance of consumer lending customers helps to assess that the expansion of consumer
lending at the branch has achieved positive results and right goals.

2.3. Evaluating loan effectiveness through customer surveys

2.3.1. Sampling
Sample object: Vietinbank customers in Bac Quang branch who need to borrow money at the
bank

Sample size:130 customers who need borrowing

Our group issued 150 surveys and got 130 votes

Method:

+ Create survey question forms based on the bank's existing survey form

+ Statistical method: statistics of customers' needs through data tables reporting

revenue results from different types of loans

+ Analytical method: from data tables, analyze customer needs

+ Mixed method: from the results of the above methods, synthesize them to assess
customer needs, and make recommendations for solutions.

2.3.2. Result
- From using methods to select samples and analyse data, our team has obtained the
following evaluation results:
- In general, customers with loan needs are in the age group of 18-35, most of them
have jobs but their incomes are still low and not stable (about 80%).
- Customers with consumer loan needs over the age of 60 account for nearly 10%,
mainly those who are retired. Although they have a stable income, the salary is low, and when
there is an unexpected problem, they will lack money to maintain their daily lives.
- Middle-aged people also have a need for bank loans, usually for the purpose of
sending their children to study abroad or building a house, but account for a small proportion
(less than 10%).
- The pie chart below demonstrates the proportion of consumer loans to individual
customers based on loan purposes

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The pie chart indicates that the percentage of consumers want to get a loan to buy cars is
46.9%, while that figure of borrowing in purpose of home mortgage is 33.1%. These 2 kinds
of loan occupy for most of the numbers of customers who want to make a loan. The
proportion of customers who want to have a loan for study abroad and the rate of other
consumer loan is approximately 10%.

To conclude, our survey results show that the target customers for consumer loan package is
people in the age of 18 – 35 and they have a job with salary per month more than 5 million
VND. Their common purposes for borrowing from the bank is to buy houses and cars. More
than 70% of the sample are tend to get a loan in the middle or long -term (from 5- 10 years).

2.2.3.1. Analysis of consumer loan structure

The characteristic of this loan is that the bank uses the assets formed from the loan as
collateral, when the customer is unable to repay the loan, the bank executes the asset project
to ensure the ability to recover the debt. Structure of outstanding consumer loans by term
Consumer lending branches are mainly medium and long term. Outstanding loans for medium
and long-term loans increased gradually over the years.

2.2.3.2. Analysis of consumer lending market share

Regarding market share VietinBank Bac Quang needs more solutions related to
preferential interest rate policy, expanding transactions and promoting advertising to be able
to contact more customers, especially customers in rural areas. villages, from which they can
rise to a higher position in accordance with the set goals.
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2.2.3.3. Analysis of the quality of consumer lending services

The less satisfied services need to be overcome in the near future, which is the
transaction processing time; application documents, procedures and interest rates.

2.2.3.4. Analysis of credit risk control results

With provisioning and bad debt ratio in the plan, it can be seen that the Branch has taken
certain measures in controlling bad debts.

2.2.3.5. Actual situation of income from consumer loans

This proportion is increasing year by year, proving that people's demand is increasing
and the Branch has done well in attracting customers to this consumer lending activity. Along
with the number of customers increasing every year, the bad debt ratio also increases. The
Branch should seek solutions to reduce this bad debt ratio to ensure the stability of the
Branch.

CHAPTER 3
SOME SOLUTIONS TO IMPROVE THE EFFICIENCY OF CONSUMER LOAN
ACTIVITIES FOR INDIVIDUAL CUSTOMERS OF VIETINBANK-BAC QUANG
BRANCH

3.1 General assessment of the effectiveness of consumer loans for individual customers
at Vietinbank - Bac Quang branch

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3.1.1. Strength
 Having the largest charter capital and strong shareholder structure 

VietinBank Bac Quang branch is a commercial bank with the largest charter capital and
strong shareholder structure in Ha Giang province with the main shareholder being the State
Bank of Vietnam holding large shares in the corporation, two partners. Foreign strategic
partners are BTMU and IFC.
 High credit rating and credit rating upgrade

The situation of COVID-19 epidemic is having very complicated developments across the
country, Ha Giang province is no exception. In response, Vietnam Joint Stock Commercial
Bank for Industry and Trade (VietinBank) continues to reduce lending interest rates by up to
1% per year for customers who are negatively affected by the COVID-19 epidemic.
Deploying preferential credit programs balanced from commercial capital of the bank to meet
the consumer loan needs of people and businesses in Ha Giang province
 Simple and compact loan application

Loan documents for science and technology are simple, there is no standard financial
reporting system, purchase and sale of goods, debts are mainly tracked in handbooks and
importantly, the purchase and sale of goods is mainly based on trust. , payment for goods is
mainly in cash, rarely signing contracts or issuing value-added invoices. 
 Professional staff and staff

The branch's team of consultants with professional knowledge in finance, credit and current
laws are always ready to respond and give accurate advice to science and technology who
need consumer loans.

3.1.2. Weakness 
 Lending to individual customers costs a lot

Due to the large number of science and technology in Ha Giang and widely dispersed,
maintaining, and developing consumer loans for science and technology will be
costly. Related to network expansion, advertising, and marketing to facilitate access to science
and technology subjects in each locality and region; Develop adequate personnel to serve
customers quickly…
 Interest rates are usually higher than corporate customers

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Consumer lending often carries a high risk in its operations and the branch's ability to collect
debts is highly threatened by the sensitivity of consumer lending to the business
cycle. Furthermore, when borrowing money, consumers seem to be less sensitive to interest
rates. They care more about their monthly payments than interest.

3.1.3. Reason
3.1.3.1 External causes
- In the past time, many businesses in the province have faced difficulties, reduced
incomes, lost jobs, this has had a great impact on consumer lending activities.
- Current interest rates are more stable.
- Consciousness of consumers: Due to the limited awareness of the people about the
benefits of using the bank's products and services.
- Fierce competition: In the integration trend, many banks are continuously
established, reducing the market share of banks.
- The reason comes from difficulties related to the order and procedures for
registration of security transactions when mortgaging land use rights, properties attached to
land, assets formed in the future
- In recent years, the impact of the Covid epidemic has also had a great impact on
consumer lending activities.
3.1.3.2. The inner cause
- Communication in credit card activities is still limited.
- Subjects and level of unsecured credit CVs are still limited.
- In fact, the bank only focuses on collateral which is real estate for individual
borrowers.

3.1.4. Lessons learned from experience

In order to develop consumer lending activities, the Branch has recognized the
disadvantages and found out the causes as well as drawn lessons to improve the performance
of consumer lending activities further:
- Completing consumer lending procedures, processes and products
- Diversify forms, methods and subjects of consumer loans
- Build the right and effective customer policy
- Promote marketing activities in consumer lending activities
- Increasing the application of new banking technologies
- Apply flexible interest rate policy

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 - Improve the quality of human resources
- Do a good job of customer management

3.2. Some solutions to improve the efficiency of consumer lending activities for
individual customers at Vietinbank - Bac Quang branch

3.2.1 Effective development of marketing activities

Although marketing activities in the banking sector are no longer strange, effective
application in this field is only the beginning. Banks mainly promote their bank's image
through traditional advertising activities, quite a few banks in Vietnam focus enough on
Marketing. Meanwhile, there are many ways for marketing to be highly effective such as:
+ Market research potential customers
+ Upgrade images, services
+ Provide a source of quality, reputable service
Using social media as leverage…
In addition, when the social context really has breakthroughs of Science - Technology,
it is very reasonable to apply scientific achievements in the development of Marketing.
Focusing and focusing on exploiting highly secure software applications in the banking
industry is the first essential element to have. Vietinbank has launched a number of
applications to help customers control spending, use money transfer and savings services, etc.
However, in order to improve the productivity that Vietinbank wants to achieve, Vietinbank
should invest more in it. apps installed on a customer's mobile device further by developing
an existing app, or launching a further branded product. But still have to ensure enough
features and safety for Customer's bank account.
Marketing activities on social networks: Currently, users of social networking
platforms are very large, this is a source of millions of potential customers for Vietinbank.
Reaching this source of customers is mainly through Posters with attractive images and
content. From there, targeting this customer segment, the Bank will easily have the
opportunity to get closer to the set target.

3.2.2. Improve the quality of human resources

An abundant and well-skilled human resource is one of the essential and key factors:
to do well in human resources to improve the business performance of the organization. Every
year, the bank prepares for the input of new employees carefully, including many factors such
as: knowledge, professional expertise, appearance, professional working style, and quality
ethics. good to be able to handle the assigned work well…. Before the breakthrough
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development of current scientific technology, along with the fierce competition of
organizations in the same industry, the training of a quality human resource needs to pay great
attention. This directly affects the reputation, reputation and revenue of the Bank.
Input training is the first step that the bank needs to pay the most attention to because a good
and professional service attitude will be a big plus for improving service quality. Specifically,
good recruitment will bring the following benefits:

+ Bring to the business a team of personnel suitable for the job and position to be recruited.

+ Save the cost of training human resources after entering the workforce.

+ Avoid the situation of having to constantly recruit new personnel. Limit the rate of "job
hopping" of employees.

Some solutions to improve the quality of human resources in enterprises:

+ Focus on recruitment.

+ Develop business strategy in parallel with human resource development strategy.

+ Create favorable conditions for employees to study, improve the quality of human resources
at.

+ Employing the right talent in the right place

3.2.3. Improve the quality of customer service

In order to improve customer satisfaction with lending services, it is necessary to
focus on solving 3 factors: service price, reliability and responsiveness…
In the current fierce competition, commercial banks must improve service quality,
technology, capital, human resources, etc. to attract customers. Therefore, it is necessary to
analyze and evaluate the level of customer satisfaction about the bank's products, services and
culture to know how customers perceive themselves, know the necessary points to maintain.
and what access rights need to be adjusted.
According to us, the criteria to evaluate customer satisfaction are: reliability
(reliability), response (responsibility), assurance (assurance), sympathy (reliability).
empathy), visual means (tangibles); also service pricing also does not work small to the level
of customer satisfaction.

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 Through researching customers in Vinh Long and Can Tho areas and using model
analysis, we propose a number of solutions to improve customer satisfaction with lending
services as follows:
*Price policy
In fact, interest rate loans have a great influence on the business performance of
customers, so the factor of loan service price is of the most interest to customers and affects
customer satisfaction. . hang. This is also a well as a base to client the given the row and used
to be not going to use the service or not. Therefore, commercial banks need to have an interest
rate to borrow, a level of flexibility, competition and change in accordance with the situation
of interest rates so that they can actively adjust to keep and attract customers as well as not to
damage when the Steroid has a strong variable.
* Trust
Customers increasingly tend to transact on a reliable basis, they are always interested
in the reputation and prestige of the bank. Customers also feel the satisfaction of this factor is
very high. Therefore, it is necessary to simplify procedures and forms, reduce transaction time
with customers; Build a coffee shop that handles processes and information between
departments / organizations to shorten waiting times and create trust for customers, especially
when one department cannot provide finished products to customers hanging goods.
To create credibility, commercial banks need to build beautiful documents and images
in the hearts of customers, from leaflets, posters, banners, slogans to general models and
designs of headquarters and transaction offices; Respect commitments with customers and
work for customer-oriented goals; Resolving customer complaints, having to consider
customer complaints is a signal for the bank to continuously improve service quality. If the
customer complaints are recorded and corrected, the level of customer satisfaction and
confidence is enhanced.
* Responsiveness
In the market, there are more and more banks competing, so customers have many
options and it is appropriate to transact with the bank that has better service and meets the
needs of the time.
In order to well meet the needs of customers, the bank must have an appropriate
network development strategy, train high-quality human resources, equip employees with
communication and sales skills, and at the same time need to have a service mode,
professional, enthusiastic for customers.

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 Along with that is disbursement time, loan amount as required, reasonable loan term,
appropriate payment, etc. Regularly exchange information with customers to capture and
answer their expectations, From there, conveying to customers information about new
products and services as well as collecting feedbacks is also an indispensable job.

3.2.4. Improved post-lending inspection and control

- Monitor and supervise the loan after disbursement according to the specific contents and
methods specified in Vietinbank's Post-borrowing Control Guide;
- Store credit records: manage and store customer records, credit records.

3.2.5. Market valuation of collateral

Flexible application of valuation methods with assets for the purpose of valuing
collateral assets of customers in an objective and effective manner brings benefits to
customers and credit institutions.
Monitor market price movements of assets commonly offered as mortgages such as
houses, cars, stocks and valuable papers, most secured assets.
Introduce transparent collateral assessment process measures so that bank loans and
investments can be made.

3.2.6. Improve customer financial appraisal capacity

The bank must always attach importance to credit work and credit officer quality.
Having a detailed and clear credit policy, decentralizing specific jurisdiction, clearly defining
functions and duties for each department related to lending, debt collection, and even debt
settlement.
Consider whether the bank can check and control the loan before changes that
adversely affect customers. Always improve the quality and efficiency of credit risk
management. The appointment of titles related to lending must be objective, in accordance
with regulations, and select people with real capacity and quality. The arrangement of credit
officers must be selected and suitable to the actual capacity as well as the field of work
assigned. Appreciate the training and retraining of employees: from professional skills to
ethical qualities of the staff.

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 CONCLUDE

In recent years, in the commercial banking system in general and the Bac Quang
branch of Incombank in particular, consumer lending has grown and achieved many
encouraging results. However, there are still many difficulties. Therefore, the introduction and
implementation of solutions to develop consumer lending activities is a necessary requirement
for banks.
After a period of internship at Bac Quang branch of Incombank, with this topic, I have
summarized some basic issues about consumer lending activities at commercial banks;
31
analyze and evaluate the current situation of consumer lending at the branch of Incombank
Bac Quang and on that basis, propose some solutions to develop consumer lending activities
at the branch.
However, due to the limited research time, limited collection of documents and
personal knowledge, the content of the report certainly has many shortcomings, just stopping
at the reference level. I hope you consider helping me to complete this thesis well.

LIST OF REFERENCES (added later)

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