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Topic: Solution to expand car loan activities for individual customers at

Military Commercial Joint Stock Bank – My Dinh Branch

1. Introduction
If it is often said that a bank is the business of all businesses, the lifeblood of the
economy, the center of exchange of countless legal systems, and a sensitive and
complex field of activity, Personal credit is an important part of a bank, especially a
joint stock commercial bank.
In line with the requirements of development and integration, the business
activities of joint stock commercial banks in Vietnam in the current period are
gradually forming the main business trends including:
- Gradually improve financial capacity
- Developing modern banking products and services, especially retail banking
services based on high technology.
- Develop a customer-oriented strategy.
- Develop network and distribution channels.
The highlight of the business trend of most commercial banks today is retail
banking. Retail customers that commercial banks target are individual customers with
stable average income and above and small and medium enterprises. Temporarily
ignoring corporate customers because it is outside the research scope of the topic,
individual customers are considered a basic component in the retail business trend of
commercial banks today.
In fact, in the operation of commercial banks in Vietnam, the science and
technology group usually accounts for a smaller proportion of transaction revenue
than the business customer, the analysis and appraisal of science and technology is
also relatively simple, so commercial banks often place The problem of effective
credit management for business customers is more serious. However, when the
economy develops, the demand for transactions with banks of science and technology
is increasing, so paying proper attention to the effectiveness of lending to science and
technology subjects is an indispensable requirement in the competitive strategy of
banks. commercial banks, in line with the retail banking business trend. Looking at
the lending activities of credit institutions, typically commercial banks, in recent
years, we see that there are encouraging initial results, but it also has many
shortcomings that need to be resolved and improved. effectiveness of this work. In
banking operations in general and banking for science and technology in particular,
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lending activities always receive special attention from commercial bank managers.
This is because lending is always the activity that brings the largest source of income
for commercial banks and at the same time is also the activity that bears the most
potential risks. On the basis of the theory I have learned and practical experience
gained during my work at Military Commercial Joint Stock Bank, I researched and
learned about the topic: “Solution to expand car loan activities for individual
customers at Military Commercial Joint Stock Bank – My Dinh Branch”.

2. Literature Review
In the current context, Vietnam still has the potential to develop the auto
industry. The problem is that we need to rebuild the development plan and develop
policies, choose the right direction to attract investment.
The problem for us is how to exploit this potential and build the foundations for
the development of a Vietnamese automobile industry.
Currently, this potential is limited by the ability to develop infrastructure. In
2005, with 550 USD/capita per year, Vietnam had an average of 1 car for 156 people.
But according to international statistics, countries with GNP per capita between 500
and 1,000 USD have an average of 1 car for 37 people. Thus, automobile
consumption in Vietnam is not commensurate with its potential. Vietnam has many
possibilities to attract large-scale investment by international corporations.
In order not to squander potentials, we need to manage the transition period to
build the basic foundations for the future development of Vietnam's auto industry.
That is to say, on the one hand, set out a large-scale and ambitious plan for
infrastructure development and the automotive market to attract attention and attract
investment in design and production in Vietnam; on the other hand, optimally
manage the period of limited market development by keeping car prices high, and at
the same time take measures to prioritize development in areas with low vehicle
density:
– High car prices: high import tax and/or environmental regulation from Euro 2
to Euro 4 and then 5; The second measure aims to modernize cars in Vietnam (in
2012, China and India will apply Euro 5) and reduce pollution in big cities like Hanoi
and Ho Chi Minh City.
– Prioritize the development of areas with low vehicle density (rural and
highlands) with specific policies to contribute to the development of the Mekong and
Red River delta areas and exploitation of remote areas. The typical example in the
world is that the United States has effectively used the automobile as a tool to
develop and exploit all parts of the country.

3. Data and Methods:

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3.1. Research strategy

- Overview of MBBank
+ MBBank - My Dinh Branch fully performs the functions of a retail bank such
as: account service, deposit, lending, payment, money transfer, overseas money
transfer, foreign currency transaction, card services and e-banking, other products and
services of MBBank
+ Organizational structure

Director

Exchange
CRM SME CIB Private department

- Introduction of car loan products

The MBBank car loan package has outstanding advantages such as:
• Maximum loan limit up to 80% of car purchase value
• Maximum loan term up to 84 months
• Preferential interest rates from only 0.55%/month
• Super fast approval time, within 15 minutes after MBBank receives all
customer's documents
• Flexible repayment methods:
• Principal to be paid periodically or at the end of the period
• Interest paid periodically on a fixed annuity or on the original balance or on a
decreasing balance
From February 2020, MBBank implemented approval by system with super-fast
approval time, within 15 minutes. Customers can quickly know the approval results
after providing full documents.
With a simple and convenient loan procedure and quick disbursement time, the
car loan product will bring satisfaction to customers, helping customers to own their
dream car simply and quickly without any hassle. any financial concerns.

3.2. Data
- Results of lending activities at MBBank
- Results of car loan activities at MBBank
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3.3. Method
- Survey about customers' needs for car loans
+ Reason for doing the survey: Find out customers' opinions on the need to use
personal credit services to build feasible solutions in product provision, meeting
customers' needs. customers and bring positive results for banks.
+ Survey object: Customers who have used the service and the group of
customers who have not used the service but have a need to use it.
+ Survey form: Online and offline
+ Survey location: MBBank, My Dinh branch

4. Structure of the topic

- This topic is organized into 3 chapters:
Chapter 1. Overview of MBBank
Chapter 2. Actual situation and needs of customers for car loans at MBBank
Chapter 3. Some solutions to meet customer needs
5. References
- Report on business performance of MBBank
- Source of customer data