A.

INTRODUCTION

MB Bank (English transaction name: Military Commercial Joint Stock Bank) is a joint
stock commercial bank and also an enterprise under the Ministry of National Defense
established by main shareholders: Viettel, Vietnam Investment Corporation. State capital
investment and business, Vietnam Helicopter Corporation and Saigon Newport
Corporation.

After more than 29 years of construction and growth, MB has made its mark on the
financial market with a steady and strong growth rate, always ranked among the top
banks in Vietnam in terms of business efficiency.

1. General information

Date of establishment: November 4, 1994

Stock code: MBB Listed on: November 1, 2011

Tax code: 0100283873

Phone: 024 62661088

Fax: 024 62661080

Email: Info@mbbank.com.vn

Website: www.mbbank.com.vn

Head office address: MB Building, No. 18 Le Van Luong, Trung Hoa Ward, Cau Giay
District, Hanoi City, Vietnam

MB organizes its business as a corporation MB group including 06 member companies:

 MB Securities Joint Stock Company.

 MB Shinsei Finance Company Limited.
 MB Ageas Life Insurance Company Limited (MBAL).
 MB Investment Fund Management Joint Stock Company.
 Military Bank Asset Exploitation and Debt Management Company (AMC).
 Military Insurance Joint Stock Corporation (MIC).

2. The process of formation and development of Military Bank (MB)

MB was established with a capital of nearly 20 billion VND, 25

04/11/1994 employees and a single transaction point at 28A Dien Bien Phu,
Hanoi.
Established Thang Long Securities Company Limited (now
2000 MBS Military Bank Securities Joint Stock Company) and MB
Bank Asset Exploitation and Debt Management Company
(MBAMC).
2003 MB conducts comprehensive reforms in systems and human
resources.
2004 MB is the first bank to issue shares through public auction with a
total face value of 20 billion dong.
2005 MB signed a tripartite agreement with Vietcombank and Viettel
Military Telecommunications Group on payment of Viettel's
telecommunications fees and reached a cooperation agreement
with Citibank.
2006 Established Hanoi HFM Securities Investment Fund
Management Company (now MB Capital Military Bank
Investment Fund Management Joint Stock Company).
Successfully deployed the CoreT24 information technology
modernization project of Temenos Group (Switzerland)
2008 MB restructures its organization. Viettel Military
Telecommunications Group officially became a strategic
shareholder.
2009 MB launches Customer Service Center 247.
 2010 Opened the first branch abroad (Laos).
2011 Successfully completed the listing of shares on the Ho Chi Minh
City Stock Exchange (HSX) from November 1, 2011. Opened
the second branch abroad (Cambodia). Successfully upgraded
CoreT24 system from R5 to R10
2019 MB launches new logo and brand identity.
2020 MB received two prestigious awards:
 The bank accompanies small and medium enterprises
 Typical bank in green credit
2021 2021 with a series of 6 prestigious awards from The Asian
Banker, including:
 Best Customer Onboarding Initiative;
 Most Improved Retail Bank;
 The Achievement in Liquidity Risk Management in the
Asia-Pacific;
 Best FX Bank in Vietnam;
 Best Financial Derivatives Provider in Vietnam;
 "Best branch digitization implementation in Vietnam"
bank.
2022 MB was honored with the Vietnam Digital Transformation
Award 2022
2023 MB received 2 The Asset Triple A Awards: “Best Digital
Branch Project” and “Best Mobile Banking Application”
MB received the 2023 Sao Khue Award from the Vietnam
Software and Information Technology Services Association
(VINASA)
3. Core business
MB Bank provides diverse banking services such as deposit accounts, loans, credit cards,
payment services, securities services and many other financial services. In addition, MB
Bank also operates in the fields of insurance, asset management, fund management and
other fields related to the banking industry. With a nationwide network, MB Bank has
hundreds of transaction points and ATMs, helping customers access services easily. In
addition, MB Bank also invests in technology to provide convenient online and mobile
banking services for customers. MB Bank has a large scale and is managed by a
professional and experienced management team. The bank always aims to meet the
financial needs of customers, while ensuring reliability and safety for financial
transactions.

4. Organization chart

5. Vision, mission statement and core values.

MB's vision: Become the most convenient bank for customers

MB's mission: For the development of the country, for the benefit of customers
MB's core values: Solidarity - Discipline - mind, Execution - Safety – Efficiency

6. Products and services of MB Bank

Products tagged with

Domestic/international credit cards for individuals and businesses

Local/international debit cards for individuals and businesses

Prepaid card

Lending Product Suite

- MB mortgage loan package: supports consumer loans based on payroll,

motorcycle cavet, electric bills, bank statements.

- MB Mortgage Loan Package: supports the forms of home loan, car purchase,
business loan.

Savings deposit service

Offer a wide range of savings packages with flexible maturities with optimal interest
rates for customers

Electronic banking services

- MBBank App

- MB Bankplus

- SMS Banking MB

- Internet Banking

Insurance

Provide comprehensive insurance packages from MB Ageas Life and MCredit member
companies to support future sustainability goals such as support to cover the costs of
illness, accidents, learning ...
 1. Details about service MB Hi Collection
1.1. Characteristics of MB Hi Collection
- Unique in both form and utility, features
- Towards the goal of becoming “the most convenient bank” of MB
- Versatile card: MB Hi Collection card is a 2-in-1 multi-function card, which
means it integrates both ATM credit and debit cards on the same card
product.
- 3 collections: In the first release, MB launched 3 limited collections, suitable
for many ages, including: Ace - with the symbol of powerful Western cards;
Zodiac – inspired by the zodiac for young people to confidently assert their
personality; Summer Paradise – full of summer colors, arousing dynamism
and freshness.
1.2. Benefits of MB Hi Collection
- Safe and secure: All information has been encapsulated in just one chip, no
card information is printed on like conventional cards. This keeps your bank
card safe and secure, without worrying about losing card information.
- Versatile: As a new generation MB card that integrates both credit cards and
ATM cards, so you will only need to own a single MB Hi Collection card.
- Use multiple sources of money: Including the credit limit granted by the
bank and the payment account. Prioritize appropriate funds for each different
transaction method. If used at ATMs/CDMs in Vietnam, priority will be
given to money from the payment account. In case of using POS points,
online payment, withdrawing money at foreign ATMs, the credit card limit
will be used as a source of money.
- Automated credit limit: Credit card limit will be automatically granted when
meeting MB's conditions. Each customer will be granted a different limit
 depending on the use of MB in spending and payment. The more you use,
the higher the limit will be.
- Personal style: MB Hi Collection cards are designed very delicately and
uniquely with many different patterns. Depending on the preferences,
personality and feng shui of each person, choose the appropriate card form.
- When was the service launched: 01/08/2022
2. Describe the target market
The target audience of MB Hi Collection cards are young people who like
convenience and multi-style.

Customers who use credit cards and ATM cards but do not want to have
many cards, do not want to reveal information on cards, they choose MB Hi
Collection. This is a new line of cards, integrated with many options,
designed in a modern and luxurious style to suit the preferences of each
individual. Customers will have a convenient, simple, secure and special
experience with their own style.

When using the MB Hi Collection card, customers will be able to choose a

model for their card with 3 limited MB card collections including Ace,
Zodiac, Summer Paradise, which is very suitable for young people who like
the uniqueness and novelty. In addition, when using the MB Hi Collection
card to pay for shopping or travel online, you will receive a refund of 6%-
10%, non-cash payment. This is also the highlight that attracts many young
people, but currently only for MB Bank customers.

3. Strengths and Weaknesses of MB Hi Collection

3.1. Strengths
- In terms of format, MB hi collection card has a unique and beautiful design
and it is suitable for young customers' preferences. Customers can choose
the card shape individually.
- In terms of usability, the card is integrated between two types of cards, ATM
and credit cards, which helps customers easily change the purpose of using.
- According to the card issuance process, MB has simplified the identification
process right on the app, customers can receive the card very quickly
compared to the traditional method.
- Regarding the preferential policy, in the first time of using, customers will
be refunded 55,000 VND when accumulating spending. In addition, the MB
hi collection card also has unlimited cashback features when shopping
online on the MBBank app.
- In terms of flexibility, MBBank allows an automatic credit limit after 3
months when customers meet MB's conditions, customers can use this credit
limit to serve large consumption needs.
- In terms of security, the information is encapsulated in a chip, there is no
information printed on the card like ordinary cards. This keeps the
customer's bank card safe and secure.

3.2. Weaknesses
- This product is not really attractive to customers with high spending needs
because it’s started from ATM cards, only when they use large spending and
over 3 months to qualify the credit limit.
- The MB Hi Collection card has an issuance fee of 50,000 VND and an
annual fee of 60,000 VND per year, this is not a high cost, but this target
 customer prioritizes using the product for free, and many young customers
are still afraid.
4. Opportunities and Threats of MB Hi Collection
4.1. Opportunities
- MB hi collection card helps MBBank reach and expand target customers.
That is the young generation, with an average age of 20-30, a group of
people who are experiencing strong growth in spending recently.
- The integration between ATMs and credit cards helps the bank to select
potential customers with high spending levels and stable finances thereby
minimizing credit risks
- Credit cards play an important role in the growth of MBBank's consumer
credit, helping the bank to increase profits from issuance fees, annual fees,
cash withdrawal fees, interest expenses, and some other fees.
- Besides, the bank can also increase the balance of CASA - this is the amount
of demand deposit that customers keep on the card every day.
- In addition, from the customer files exploited from the above product,
MBBank can take advantage of this file to advise cross-selling other
products such as life insurance, loans, buying and selling foreign currency
when traveling, ...
4.2. Threats
- The Bank faces a high risk of bad debt because customers cannot control
their spending, inability to pay credit cards
- It is easy to be exploited by bad people when making false transactions to
withdraw money from credit cards.
- Card service that integrates ATM and credit cards is still new in the market,
banks will face some risks in terms of information security management and
product operation.
- MB hi collection card is very easy to be copied by competitors. With better
management resources, the bank may lose market share.
5. Compare with VIB
Similar service to a card, a competitor that also provides this card line is
VIB. The difference here is that VIB allows opening with 1 additional card
to choose from two sources. International Bank (VIB) launches Online Plus
2in1 card line that integrates two credit cards and pays on the same card.
One end of the card you can withdraw money at the ATM like other normal
ATM cards, the other end for spending like a credit card. Each end will have
a different chip, which card you want to spend, put that card in.

- Price:
Free issue fee

Main card annual fee 599.000vnd /year

Offers VIB Online Plus 2in1 Debit Card: Super offer completely free for the
first year.

- Although being integrated 2 in 1 also has many advantages, it also causes

inconvenience to customers. Specifically, the following troubles are easy to
encounter when using VIB Online Plus 2in1 credit cards:
+ Card number: this card doesn't print any card number at all, if you want to get
your credit card number or ATM card number, you can get it on MyVIB app.

+ There are many cases where customers insert their Credit cards into ATMs to
withdraw and then incur a 4% withdrawal fee, this is very easy to happen. Or
maybe you give the card to the clerk, they don't know which card to put in to
swipe.

- Benefits:
+ Quick and flexible cash exchange

+ The accumulated cashback can be actively converted into cash, annual fees,
and gift vouchers through MyVIB in less than 30 seconds.

A. CURRENT MARKETING STRATEGY

1. Price
- When making a card, you will have to pay 50,000VND for the card and
66,000VND for the annual maintenance fee.
- Outstanding utility: This is the pioneer card line in the market that integrates
credit cards and ATM cards in one chip. The credit limit will be
automatically granted when the user meets MB's eligibility. This means that
the more customers spend, the higher the limit will be. Customers can buy
cards at many places without having to go to the bank's transaction points.
Customers can use multiple sources of money including credit lines and
payment accounts with just one card.
 - Standard Mb bank credit card limit:

+ Card limit is: 10,000,000 VND to 68,000,000 VND

+ Shelf life about 3 years

+ Used for online payment, shopping bill payment, installment payment or other
services to not be charged interest within the first 45 days.

- MB Bank gold credit card limit:

+ The limit ranges from 69,000,000 VND to 200,000,000 VND.

+ Conditions of use: to own a gold credit card such as income from 6,000,000 to
10,000,000 VND or more, being a citizen in Vietnam, accompanied by collateral.

- Platinum card MB Bank limit:

+ Platinum bank card (VIP card) has the highest limit of all cards and your income
must be luxury or higher.

+ When you own a platinum credit card, if you use beauty, travel, and aviation
services, you will clearly see benefits such as a free, VIP lounge for members with
business class flight services. at airports around the world. When travel is offered
insurance and compensation will be the highest compared to standard and gold
credit cards.

+ Credit card limit is: 80,000,000 VND to 1000,000,000 VND.

2. Product
- MB marketed 3 limited collections (BST), suitable for many ages, including:
Ace - BST with symbols of powerful Western cards; Zodiac – Collection
 inspired by the zodiac for young people to confidently assert their
personality; Summer Paradise – The collection is filled with the colors of
summer, arousing dynamism and freshness.
- MB Hi Collection does not display user information like regular cards. This
helps to keep customer information safe and secure.
- Prioritize the appropriate source of money for each transaction: Withdrawal
transactions at ATMs/CDMs in Vietnam give priority to using payment
accounts. Payments and receipts via FOS, online and withdrawals via
foreign ATMs are prioritized using the card's credit limit source.
3. Place

Customers can work at any branch, transaction office of MB Bank.

4. Promotion
- Take advantage of popular social networking sites: Tik Tok, Facebook,…
Collection promoted by famous tiktokers or by KOLs, KOCs.
- Tran Bom - one of the first celebrities to show off on his personal page his
MB Hi Collection card with the Zodiac symbol: "The 12 zodiac signs were
created by ancient Babylonian astrologers from 1645 BC and this trendy
card that integrates everything has just been created by MBBank.”. Followed
by a series of tiktokers such as Long Chun, Tran Truc Ly...
- Offer incentives: Cashbag 20% cashback, free E voucher for anyone who
opens a nice digital account,...
 B. PROBLEMS AND SOLUTIONS
1. Service aspect
1.1. Problem

Recently, MB Bank has received many complaints from customers about the
service, such as too much maintenance, making it impossible for customers to
transfer funds, pay cards, withdraw money, and even lose money for unknown
reasons. However, when calling the switchboard, it is overloaded and leads to
the consultant needing a lot of time to solve problems for customers. Besides,
there are many reflections on how issuing MB Hi Collection cards is
unnecessary for customers who have used MB Bank's services. They feel that
using a regular card is enough for their needs and they don't want to buy this 2
in 1 card.

1.2. Solution
MB Bank needs to hire more staff to take care of customers, train human
resources, upgrade technology to ensure that the service is always thorough and
minimize risks. Although this will cost a lot more, it gives customers
satisfaction and from there they have more confidence in using the bank's
services. Besides, MB Bank should also develop this 2 in 1 card more so that
customers can feel they need this card.

2. Price aspect
2.1. Problem

MB Bank creates an eye-catching MB Hi Collection card line and integrates 2

in 1 credit card and ATM card on the same chip towards the goal of being the
most developed bank and leading in technology. That means they need to pay a
lot of money for labor, modern technology,... so they have pushed the card price
higher than other conventional cards.

For example: With other regular cards, the staff will ask you to pay 50,000
VND but it will be added to the balance in your account, meaning you will not
lose money to make the card. In some cases, you even have to pay the card's
annual fee. But with the MB Hi Collection card line, you will have to pay a card
purchase fee of VND 50,000 and an annual fee of VND 60,000.
2.2. Solution

If MB Bank wants to target young people with this card line, they should
discount at least 50% of the card registration fee and the annual fee for students.
If they charge a higher price than regular cards, young people will not want to
use this 2 in 1 card because they tend to save as much money as possible. Such
a discount will also help young people feel more willing to use this service, and
they will recommend it to people around, thereby creating a very effective viral
effect.
3. Place aspect
3.1. Problem

In urban areas, MB Bank's branches are many, convenient for users to buy
cards as well as withdraw money. However, in rural areas, there are not many
branches, so it will be much more difficult to buy cards. And with the goal of
becoming a leading bank, the popularity of branches is essential.

For example: In Soc Son district - Hanoi city, there is only one branch of MB
Bank in the center of the district although this district is very large and the
population is quite large. Therefore, users who are not in the district center even
have to go more than 10km to reach this branch.

3.2. Solution

If MB Bank wants to compete with big rivals like Vietcombank, Vietinbank, TP

Bank, etc., they need to build more branches in rural areas to make it more
convenient for customers who want to use the service. If the cost is too
expensive, you can build more Smart ATMs and sell cards right there because
with this type of card, you only need to enter the serial number to be able to use
it.

4. Promotion aspect
4.1. Problem

The card will be advertised mainly through social networks such as Facebook,
Instagram, Tiktok,... and MB Bank mainly focuses on booking young KOLs
and KOCs, so it can almost only reach young people. However, this card costs
more than regular cards and it also integrates credit cards, which young people
often do not dare to use credit cards for fear of overspending, leading to
inability to pay those debts. Besides, the elderly have a need to use this card,
they do not know it because its popularity is not high.

4.2. Solution

MB Bank should recruit more sellers and give them cards to public places such
as schools, companies, etc. to promote their products. From there, not only
young people but also the elderly can access this card line more easily. Besides,
for each customer using the bank's service at a branch, the staff can advise
customers carefully about this MB Hi Collection card. However, if MB Bank
wants to develop this 2 in 1 card line further, they should make more cards with
simpler card images to be able to target older customers.
C. CONCLUSION

The new MB Hi Collection card is a line of cards that integrates credit cards
and ATM cards in the same chip with many options to suit individual
preferences. Credit limit will be automatically granted when the user meets
MB's eligibility. This means that the more customers spend, the higher the limit
will be.

Exemption of a variety of fees such as money transfer fees, account

management fees, electricity and water bill payment fees, etc.

MB marketed 3 limited collections, suitable for many ages, including:

- Ace - collection with symbols of powerful Western cards.

- Zodiac - collection inspired by the zodiac for young people to confidently
assert their personality.
- Summer Paradise - a collection filled with summer colors, arousing
dynamism and freshness.

The MB Hi Collection card has become closer to customers than ever,

especially when customers can buy cards in many places without having to go
to the bank's transaction points. Customers can use multiple sources of money
including credit lines and payment accounts with just one card.

B.