Raising Banking Service Quality

As a matter of fact, maintaining high service quality can make a profit, reduce costs and expand market share. Convenient and effective distribution systems and transaction processes, like clear-cut borrowing applications and quick processing, are a sign of good service, financial strength, broad networks and technological prowess. Besides, service quality also depends on the environment and the surroundings, like the design and layout of customer service desks.

 

Among elements that make up excellent service quality, staff are the most important. While ATMs provide standard services at the same quality for customers, bank staff can supply more complex services or customer-tailored services. Arguably, enhancing service quality and using service quality as a useful competitive instrument for form the groundwork, develop sustainably and take firm steps are urgent requirements in the process of regional and international integration.

 

In fact, in Vietnam, the ratio of cash on the total means of payment declined significantly in the past 10 years, from 23.7 percent in 2001 to 14.02 percent in 2010, but is still high in relation to the rest of the world. It is clear that cash remains a primary means of payment in public service, business operations and civilians. There are many reasons cited for that reality and the fundamental rationales are the people’s habits and hesitation to use new technologies and e-payment services. New technologies enable banks to provide card services around the clock at ATM locations. This is a gigantic step forward in banking modernisation. Promoting non-cash payment also helps restructure the banking system practically and effectively by diversifying banking services and meeting growing social demand. But, the distance from using individual accounts and card payments to using non-cash service remains wide.

 

Banking Vietnam 2012 themed “Improving banking service quality” will be held in May 2012. The 15th event will centre on banking modernisation in general and “Technology transformation towards effective banking governance & high quality services” in particular. Banking Vietnam 2012 will focus on strategic planning for the banking industry up to 2015; new trends for banking technology; effectiveness in banking technology application; non-cash payment; bank governance and risk management; service channels; banking security applications and solutions.

Mr Bui Quang Tien, Head of Payment Department under the State Bank of Vietnam (SBV), estimated that 20 percent of the Vietnamese population have bank accounts. As many as 42 million ATM cards have been issued, of which 94 percent are local payment cards and 6 percent are international payment cards; 13,500 ATMs have been installed and more than 500,000 e-wallets have been issued. However, the Vietnamese payment card market is mainly by banks on an individual basis, leading to high investment costs, weak compatibility amongst banks, and dissimilar service quality.

 

Recently, the Vietnamese Prime Minister approved a scheme for non-cash payment in Vietnam in the 2011-2015 period. It clearly defines the objectives to be reached towards the end of 2015 when the ratio of cash payment is to be brought down below 11 percent; 35 - 50 percent of residents will have bank accounts and some 250,000 points of sales will be installed to serve more than 200 million transactions a year. This is considered a key springboard for the process of modernising the banking sector.

 

Vietnam is considered a high potential market for e-commerce development which will give rise to online payment services. However, to turn those potentials into reality, the effort from competent authorities is not enough, but the consciousness of citizens and businesses in non-cash payment is also needed.