FOREIGN TRADE UNIVERSITY

FALCULTY OF INTERNATIONAL EDUCATION

*****

ASSESSMENT 1

Subject: Operations and Project Management

TOPIC: MBBank’s Service Cards In The VietNam Market

Class: F-UOB-14D
Lecturer: Assoc. Prof. Dr. Tran Si Lam

No. Student name Student ID Student’s Signature

1. Trần Hồng Anh ( Leader ) 2105002036
2. Đoàn Trâm Anh 2105000016
3. Đỗ Vân Anh 2105003020
4. Bùi Hương Giang 2005293104

Hanoi - 2024
 Table of Content

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Part I : Abstract

In the current context, the economy is growing at a strong pace in general and
banking activities in particular are bustling, placing many demands on the banking
system. In addition, improvements in science and technology are applied to banking
operations, helping the Bank expand its operations significantly.

The proportion of cash payments is decreasing, being replaced by compact, non-cash

payment instruments, culminating in the birth of electronic money, also known as
electronic money. is “Card”. For Commercial Banks, the card business brings a new
direction for the Bank's business activities.

Currently in the Vietnamese market, there are many banks that have been operating,
recognizing the importance of this business activity and the provision of card services
of most banks brings many benefits to customers. . creating competitive advantages
for each Bank. So how does MB Bank's Card Services gain a solid foothold in this
market? Therefore, the topic "MB Bank's card services in the Vietnamese market" in
accordance with the internal factors and external environment of the Bank is very
necessary.

1. Introduction

1.1.1 Overview of MB Bank

MB Bank is a Vietnamese joint stock commercial bank and also an enterprise under
the Ministry of National Defense, established on November 4, 1994 by the main
shareholders: Viettel, Vietnam Investment Corporation. State capital investment and
business, Vietnam Helicopter Corporation and Saigon Newport Corporation

Full name : Military Commercial Joint Stock Bank

Abbreviated name : MBBank

Phone: 1900 545 426

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

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Website : https://www.mbbank.com.vn

On November 4, 1994, the Bank went into operation with an operating period of 50
years. Initial charter capital is 20 billion VND with 25 employees

1.1.2. History of the formation and development of MB Bank

MB Bank was established on November 4, 1994, with an initial charter capital of only
20 billion VND and 25 employees. As of. 2019, MB Bank's charter capital has
increased to nearly VND 8,000 billion. Currently, this bank's network has been
expanded throughout the country. With 138 branches and more than 190 transaction
points spread across 48 provinces and cities.

MB Bank has its headquarters in Hanoi and a transaction headquarters, with more than
3,000 officers and employees working and operating in the banking sector. In
addition, MB Bank has also built an international network with the bank's
representative office in the Russian Federation and two branches in Laos and
Cambodia.

1.1.3. Organizational structure

Figure 1 : MBS – VietNam Brokerage and Investment Banking

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 General Meeting of Shareholders: Is the highest authority of the bank, representing
the interests of shareholders. The General Meeting of Shareholders is responsible
for: Elect and dismiss members of the Board of Directors; Approve the bank's
business plan, financial reports, and profit distribution

• Board of Directors: Is the highest management body of the bank, responsible to the
General Meeting of Shareholders. The Board of Directors is responsible for: Establish
and implement the bank's development strategy ; Managing banking operations;

• Board of General Directors: The Board of General Directors is the direct executive
agency of MB Bank, responsible to the Board of Directors. The Board of General
Directors has the following main functions and tasks: Operate the bank's business
activities; Report to the Board of Directors on the bank's operations.

• The subordinate units

o Service block
o Digital business division
o Finance Division
o Human Resources Department
o Information technology department
o Operations Division
o Research Department
o Branches

1.2. Introduction to MB's business field

 Credit products: corporate credit, home purchase-construction-repair loans,

car loans, loans for national urban upgrading projects, loans for rural finance
projects II ( RDF II), lending for housing development projects for people in
flooded areas of the Mekong Delta (AFD
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  Capital mobilization products: operating savings, graduated interest rates,
preferential savings for graduate students, any-term savings, current deposit
accounts...

 Other products and services: corporate guarantees, real estate transaction

services, import-export support accounts, international payments, domestic
money transfer services, ATM card services, advance loan services proceeds
from stock sales.

1.3. Introduction to MB Bank’s Service Card in Vietnam Market

Reason: The campaign to evaluate and approach MB Bank's card services in the
Vietnamese market is crucial for several reasons. Firstly, the banking sector in
Vietnam is witnessing intense competition, especially in the realm of card services. To
cope with this and further expand market share, MB Bank needs to meticulously
assess the competitive landscape and develop a robust strategy to attract and retain
customers. Secondly, there's a shifting customer demand, with an increasing number
of users preferring cashless payment services, particularly through credit and debit
cards. Prompt and flexible response to this demand can help MB Bank attract and
retain customers, as well as enhance their loyalty. Finally , the credit and debit card
market in Vietnam still holds significant growth potential. This presents a substantial
opportunity for MB Bank to expand its volume and revenue from card services. By
focusing on the development and improvement of its services, MB Bank can leverage
this opportunity to achieve success in a fiercely competitive banking market. Success
in delivering card services can bolster MB Bank's reputation and credibility in the
banking industry. By providing high-quality and efficient services, MB Bank can
build strong relationships with both current and potential customers, establishing a
loyal and stable customer base.
Plan: To effectively deploy MB Bank's credit and debit card services in the
Vietnamese market, a detailed plan is essential. Firstly, thorough market research and
analysis will be conducted to gain insights into prevailing trends, customer

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preferences, and competitive dynamics. Next, the focus shifts to product development
and innovation. Customized credit and debit card offerings will be crafted, aligning
with the identified needs and preferences of target segments. Cutting-edge technology
is key. We'll invest to enhance security, reliability, and convenience of card
transactions. Implementing contactless payments and mobile banking meets digital
demand. Seamless integration ensures a smooth customer experience. We'll ramp up
marketing to boost MB Bank's card services. A diverse strategy including targeted
ads, social media, and influencer partnerships will be used. Highlighting unique
benefits will attract and keep customers. We'll prioritize customer education and
support for confident card usage. Providing resources and dedicated support channels
ensures prompt issue resolution. Financial literacy workshops empower informed card
usage and personal finance decisions. Lastly, performance monitoring and
optimization will be ongoing processes. Key performance indicators will be
established to gauge the success and efficacy of MB Bank's card services. Regular
monitoring of card usage, customer feedback, and market trends will inform iterative
improvements and adaptations to stay competitive and meet evolving customer needs.

Aim:
The objectives set forth by leadership for the deployment of MB Bank's credit and
debit card services in the Vietnamese market include:
o Market Share Expansion: Increase MB Bank's share of the credit and debit card
market in Vietnam by attracting new customers and capturing a larger portion
of existing customers' spending.
o Revenue Growth: Generate significant revenue growth through increased card
usage, transaction volume, and associated fees and interest income.
o Customer Acquisition and Retention: Acquire new customers through
compelling card offerings and retain existing customers by providing superior
service, benefits, and rewards.
o Brand Awareness and Differentiation: Enhance MB Bank's brand awareness
and differentiation in the market by highlighting the unique features, benefits,
and value proposition of its credit and debit card services.

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 o Technology Leadership: Establish MB Bank as a leader in technological
innovation within the banking sector by offering advanced, secure, and
convenient card solutions that leverage cutting-edge technology.
o Customer Satisfaction and Loyalty: Improve customer satisfaction and loyalty
by delivering exceptional card services, seamless user experiences, and
responsive customer support.
1.4. Introducing MB's Card Products and Card Services

 Personal Credit Card:

- Mastercard or Visa credit card: Provides features such as global payments,
reward points, travel insurance and secure Internet shopping.
- Credit cards for students: Specially designed for students, with special offers
and discounts for their needs.

 Debit card:
- Mastercard or Visa Debit Card: Allows customers to pay directly from their
bank account without creating accumulated debt

 Covenient service:
- Online account management: Allows customers to check transaction history,
account statements, and manage invoices online through an easy-to-use
interface.
- 24/7 customer support: Customer care service operates throughout to answer all
questions and support customers when needed.

 Bonus Program:
- Points accumulation program: Customers can accumulate points from each
transaction using the card and exchange these points for incentives, gifts or
cash.
- Special offers and promotions: Offer special offers such as discounts, 0%
interest installment payments, or free insurance benefits.

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  Security and Insurance:
- Account security: Provides security features such as two-factor authentication,
transaction notifications, and quick card locking in case of loss.
- Travel and shopping insurance: Provide travel and shopping insurance
programs to protect customers from risks when using the card.

1.5 . Target

 About card products and distribution activities

- Diversify card products to suit customers' diverse needs on a modern and

convenient technology platform.

- Expand linked card issuance products.

 About card acceptance network and distribution activities

- Develop a payment network that accepts cards. Connect with other banks'
international payment systems.

- Cardholder development: Create a diverse and widespread customer base to

develop future products and services.

 Card issuance plan

- Products: diversify categories (debit cards, credit cards, prepaid cards, domestic
cards, international cards,...).

- Number of cards issued: strive to issue 100,000 cards of all types.

- Proportion of revenue from cards: by 2024, accounting for 20% of total revenue.

II. Analyze MB Bank’s Service Cards in VietNam Market

2.1 Operations Performance of MB Bank’s Service Cards

 Service quality and experience personalization

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 MB Bank stands out for its emphasis on personalization. Understanding that no
two customers are alike, the bank has implemented tailored programs and services
to address the diverse needs of its clientele. Whether it's crafting customized
financial solutions or offering personalized recommendations, MB Bank goes the
extra mile to ensure that every customer feels valued and understood, thereby
enhancing their overall banking experience.

MB Bank recently introduced the Be The Sky card in collaboration with artist Sơn
Tùng M-TP and JCB, marking the first artist-integrated banking card in Vietnam.
This innovative card transcends traditional banking services by integrating music,
art, and technology, creating a direct link between fans and their idol. The Be The
Sky card offers clients exclusive benefits, including heartfelt gifts and access to
Sơn Tùng M-TP-related events. It comprises a virtual Skycloud card and three
physical card variants: Daybreak, Starlight, and Apeiron, each featuring unique
designs and symbolism. MBBank views Be The Sky as a pivotal component of its
2024 development plan, aiming to serve 30 million customers by its 30th
anniversary. This initiative not only signifies a significant milestone in MBBank's
expansion strategy but also reinforces its commitment to customer-centric
innovation.

Furthermore, MB Bank reinforces its customer-centric ethos through strategic

promotions and incentives. By regularly offering exclusive deals and rewards to
its cardholders, the bank cultivates a sense of appreciation and reciprocity,
fostering stronger bonds with its customer base. In Be The Sky Collection, there
are many notable benefits of owning the Be The Sky card. Customers have
discounts on genuine Sky Collection products, receive exclusive gift sets from
Sky Collection, including a hat, shirt, lightstick, photobook, photocard, creating a
unique fandom experience. Son Tung MTP’s fans also receive early information
and special privileges associated with activities of the artist Sơn Tùng M-TP and
had an opportunity to receive direct gifts in the account with pre-order programs,
lucky red envelopes with a total value of up to 10 billion VND. They also can

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 receive voucher discounts for a full 365 days from over 1,000 multi-sector
partners, including booking rides, watching movies, dining, and many other
sectors.

 Enhance brand image

Not only the personal experience of users, through the release of unique card
models, MB has rewritten the mark of helping customers as well as their
experiences. In a new product promotion campaign, Military Commercial Joint
Stock Bank (MB) has launched the MB Hi Visa Collection multi-function card
line, integrating credit cards and ATMs in the same chip with a unique design and
many features. Utilities help optimize consumer experience. The MB Hi Visa card
line allows users to own a physical card immediately, skipping the waiting period
of conventional card opening. The MB Hi Visa card will be activated in less than
1 minute immediately after the cardholder identifies the card on the MBBank
App. Not only that, customers can buy cards at many different locations
nationwide instead of having to go directly to bank transaction points.

Furthermore, this card line also integrates ATM cards and credit cards in the same
chip, making transactions extremely convenient. In addition, with the MB Hi Visa
Collection card, users will not have to worry about the card not displaying user
information like normal cards. This has contributed to increasing the security and
safety of customers' private information, while also demonstrating the uniqueness
and difference of MB compared to other banks in Vietnam.

At the 2024 Sao Khue Award honoring ceremony taking place on April 13 in
Hanoi, Military Commercial Joint Stock Bank (MB) was honored to have 3
products and services awarded, including:

MB payment fashion ring Stellar and MB JCB Be The Sky card for the Digital
Banking category; and mSeller sales management software for the
Administration/Customer Care category.

 Training highly professional staff

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 The demonstration of interest in training highly specialized professionals is
demonstrated by MB's dedication to its personnel and we can see that dedication
through the recognition of the employees in the corporation. MB is increasingly
increasing the content of programs providing new knowledge and skills so that
employees are ready and steadfast with the bank's digital transformation process.
MB Bank opened the Learning and Innovation Center in January 2021,
demonstrating strong steps in MB's smarter and more creative human resource
management strategy, ready for the company's development strategy. corporation
in the period 2022 - 2026.

Along with that, with a sustainable human resource strategy, aiming to build a fun
and happy working environment, MB was honored as the Top 3 Best Places to
Work in Vietnam in the Banking Industry, Large Enterprise Sector and Top 50
businesses. Attractive employer brand for Vietnamese students by 2023. With the
vision of becoming a leading financial group and digital enterprise, MB pioneers
in implementing sustainable development goals, constantly strengthening the
identity of an organization that values, learns, innovates and is socially
responsible. Previously, MB was also honored as the Best Place to Work in Asia.

In the past two years, MB has accompanied more than 100 large and small events
for students. In addition to educational sponsorship activities, MB also focuses on
investing and designing programs specifically for students right from the time they
are in school. Outstanding programs include: Talk show series "MB Let's Talk
Talent" with "extremely hot" professional topics where students can directly
discuss and interact with MB experts; “MB Chasing” - a positive career experience
program in the retail banking sector in Vietnam designed by MB for students who
can participate from the first year; As for "MB Career Tour", "MB Young Talent"
- these are programs to select excellent talents, helping to open up opportunities for
candidates without experience to join MB.

 Attract high-end customers

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 MB has attracted 4 million new customers in just the first 6 months of the year,
according to the second quarter consolidated financial report, showing that Military
Bank and member companies (MB Group) continue to maintain results. stable
business. Besides, MB also actively supports customers with loans. From March 2023
to June 2023, MB has implemented preferential loan packages specifically for
corporate customers with revenue under 100 billion, typically a policy of up to 2%
interest rate reduction for businesses. Make online loans on the BIZ MBBank
platform. MB is one of the banks with the most impressive customer attraction speed -
accumulated by the end of June 2023, there were nearly 23.5 million customers and
nearly 300 thousand corporate customers. The proportion of transactions carried out
via digital channels remains high, reaching 96%.

Or to mention the Wealth Management financial investment application on App

MBBank, which helps enhance the experience in just one financial ecosystem.
Through this application, customers who are investors can access and connect with all
products in the diverse financial ecosystem, including stocks, bonds, fund
certificates... with advice. reputation of a reputable asset management team in the
market. With a large customer base and a high rate of transactions via digital channels
(reaching 96%), the Wealth Management financial investment application is said to
have a lot of potential to grow even stronger in the near future.

 Maintain and expand market share

Military Commercial Joint Stock Bank (MB, stock code MBB) has just
announced its business results for 2023. Accordingly, MB grows strongly in scale
with total assets increasing by approximately 30% to nearly 950,000 billion VND,
CASA maintaining a level of over 40%, effectively managing operating costs, and
continuing to affirm its leading position in the race to digitally transform the banking
industry. Credit growth rate continues to be maintained, reaching 28.2% in 2023.

In 2023, MB took full advantage of the credit room approved by the SBV, and the
Bank's own credit growth increased by 28.2%. Of which, outstanding debt for priority
industry groups according to the Government's direction accounts for 65%. MB has

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adjusted to reduce interest rates 7 times in 2023 with a reduction of 2% - 4% to
support customers in accessing loans, accompanying in overcoming difficulties and
restoring production and business, contributing to promoting economic growth. The
transaction bank serves nearly 27 million customers thanks to its standard investment
information technology platform. MB still maintains sustainable customer growth, the
total number of MB customers by December 31, 2023 reached nearly 27 million
customers. 2023 is the third consecutive year MB has attracted more than 6 million
new customers (in 2021 it was 6.2 million; in 2022 it was 6.9 million new customers
and in 2023 it was 6.3 million new customers). The transaction rate on MB's digital
channel remains high, reaching 97%; MB's money transfer transaction scale via
NAPAS ranked first in the system for 3 consecutive years (2021 - 2023).

Achieving these impressive numbers is largely thanks to a long-term technology

investment strategy, helping MB continuously expand growth space and serve a large
customer base. MB's digital platforms continue to demonstrate their appeal in the
market: MBBank App is the most downloaded banking platform for individual
customers in App Store Vietnam in the past three years, currently owning 22.4 million
users. MB maintains a stable CASA at a high level, the CASA rate in 2023 reaches
nearly 40.1%. Customer deposits reached VND 569,640 billion, an increase of 27.3%
compared to the beginning of the year. CASA balances in 2023 also grow by nearly
27% compared to 2022. MB's card operations have also had impressive changes
recently by continuously launching new card product lines.

2.2 Current Market Position of MB Bank’s Service Cards

Assessing the current market position of MB Bank's service cards involves analyzing
various factors that influence their competitiveness and performance in the financial
industry. Firstly, examining market share and penetration rates provides insight into
the extent of adoption and acceptance of MB Bank's cards among consumers and
businesses. Understanding the demographics and segments targeted by MB Bank's
card offerings helps identify opportunities for growth and expansion.

2.2.1. Market share and competition analysis

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  Market Share

Fitch projects that Vietnam's GDP growth would pick up speed to 6.3% in 2024 and
7.0% in 2025, following a slowdown to 4.3% in 9M23 (2022: 8.0%) due to persistent
challenges in the country's real estate market. Domestic monetary and fiscal policy
have changed to assist the economy more and more. The medium-term fundamentals
of the economy continue to be favorable, and the banking industry's business
prospects are strengthened by continued economic growth. With regard to the 'bb-'
operational environment score, we have remained optimistic. With its rapidly growing
balance sheet and advancing digital capabilities, MB is becoming more and more
visible in the market, solidifying its standing as one of Vietnam's biggest private
sector banks. The market share of the bank in terms of deposits and system assets is
between 4% and 5%.

 Competition

MB's competitors are no longer strange: other ancient commercial banks, credit
institutions, financial companies and even foreign banks are increasingly expanding
into the country's financial market. Vietnam. Most competitors have similar products
to MB, which also puts MB at risk of reducing its customer segment if MB constantly
develops and improves its services combined with increasing the MB brand to the
public. Group 2 will analyze and compare some of MB's products with some other
banks to see the strengths and weaknesses of MB's products.

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From the table above, it can be seen that MB's savings deposit interest rates are always
among the top banks with the best interest rates, even higher than the big 4 banks and
significantly higher than many foreign banks. However, they are still lower compared
to some competitors such as TCB, SCB, TPB...

On the other hand, for the competitors who are the Big4 - the top large banks well-
known for their scale and long-standing brand, customers will be more proactive in
depositing money, thus the capital mobilization is very easy and a considerable
amount of capital is mobilized from the population despite the fact that the interest
rates of these banks are lower than MB's. However, recent fluctuations in SCB have
made people hesitant and restricted in depositing savings in this bank, even though
SCB's interest rates are much higher than MB's and some other banks in general.
Therefore, what MB needs to focus on here is not only applying preferential savings
interest rates to customers but also increasing MB's image and brand to customers,
helping MB strengthen existing customers and reach potential customers, increasing
capital mobilization and consolidating MB's position in the market.

Furthermore, MB's implementation of the instant savings deposit program on the

MBBank App is essential to help the bank compete with competitors and align with
the current development of digital technology, allowing customers to be more flexible
with their capital with more options regarding term, deposit amount, convenience, and
speed. At the same time, MB also applies a +0.2% interest rate at the counter when
customers deposit savings online to stimulate customer demand.

2.2.2 Growth trends and forecasts

With the explosive development of 4.0 technology and the popularity of smartphones
in daily life, mobile payment is becoming increasingly popular. Grasping this trend,
MB is the pioneer bank in deploying payment via VietQR code and Google Pay,
allowing users to pay quickly with just a touch or scan of the code. Always leading the
trend with criteria towards digital technology, so it is certain that for MB Bank, the
upcoming promotion process will meet with more success.

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In the period 2024 and the following years, MB expects to rely on 3 major growth
drivers.

The first is retail. MB currently has more than 26 million customers, expected to reach
30 million by 2024. The number of customers using MB's most basic product is loans,
there are 453 thousand customers and is growing well. This is a very hopeful point in
the future.

Outstanding retail debt and outstanding loans to micro SME customers account for
51% of MB's total debt structure and the growth rate is still very good, which is the
driving force to help MB grow very well in 3- The past 4 years. Currently, the number
of customers interacting regularly on App and BizMB is very high, about 10-15% of
loan transactions can be transferred on digital platforms and we hope to expand in
2024.

Retail will help MB's CASA continue to grow in the near future. In the context of
2024 when credit institutions enter a new economic cycle, that is, lending interest
rates decrease, the advantage of CASA and capital costs will help MB have good
conditions to provide customers with low-cost loans. Reasonable fees while still
ensuring high profits in the future.

The second driving force is digital transformation. In recent years, MB has invested
heavily in digital transformation, connecting with the customer ecosystem across
platforms, creating a good experience for customers. Thanks to digital transformation,
the number of transactions has grown very high, but operating costs and staff costs for
these transactions have remained the same.

The third growth driver is group synergy. Currently, MB's ecosystem is a financial
group with a full range of financial services, from securities, banking, insurance...
creating the complete and largest endogenous motivation in the banking and finance
industry. This has shown clear results through the growth of each member, for
example, the number of MBS customers increased more than 3 times within 2 years.

2.3. Consumer Behavior and Preferences

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2.3.1. Factors influencing card usage

The customer base of the bank is extremely diverse and varied. However, each
customer has different needs and desires to determine their banking product and
service needs, as well as studying the factors that influence their needs and desires.

The factors influencing the needs of individual customers include:

- Family characteristics, such as cultural background, family size, number of

dependents, all affect the demand for banking products and services. For example,
families with many dependents have higher loan needs, while families with many
adults have higher demand for deposit products.

- Social roles and status: Social status has a clear impact on the financial needs of
individual customers. People with high social status often have high incomes and their
demand for banking financial services is also high, and vice versa. For example, CEOs
or directors of companies often have a demand for international payment services,
personal checks, while ordinary laborers do not have much demand for these types of
services.

- Social class: Individuals, households belonging to different social classes will have
different needs for banking products and services such as the rich, the poor, the
educated, workers, farmers, capitalists.

- Age: Depending on age, customers have different needs for banking products and
services. For example, young people are usually flexible and adopt many technologies
so they prefer electronic banking services at MB, credit cards. From middle age
onwards, customers tend to switch to savings rather than other forms of risky
investment.

- Occupational characteristics: Business people will have needs for payment products
and usage more than government officials.

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- Economic conditions and income: People with high incomes often seek savings and
investment products, while those with low or unstable incomes have high demand for
small loans and savings.
Marital and family characteristics are also factors influencing the need for banking
products and services: households will have more borrowing and deposit needs when
single.

Factors influencing the needs of business customers:

- Characteristics of the industry: Customers in industries such as import-export
companies have large demand for international payment services and foreign
exchange trading services, while agricultural processing enterprises have a need for
loans, especially seasonal loans...

- Scale of business operations: Large-scale enterprises often have both large and
diverse needs for banking products and services than small and medium-sized
enterprises, and they also tend to provide a large Casa source for customers.

- Scope and market activity also greatly influence the demand for banking products
and services of corporate customers.

2.3.2. Customer satisfaction and feedback

Customers often rely on trust or practical experience to decide on product and bank
choices. Besides, there are also factors such as mutual understanding, relationships
and personal relationships that are also extremely important factors that determine the
customer's choice of banking products and services. Accordingly, MB currently has
16.5 million customers, of which from its establishment (1994) to 2020, MB has 6
million customers. In 2021 and the first 6 months of 2022 alone, MB has increased by
10.5 million customers, this is a very impressive number. On November 31, Military
Commercial Joint Stock Bank (MB) said, only until the end of the first 9 months of
the year 2021, MB has attracted nearly 8 million MBBank App users. In 2021 alone,
there has been an increase of over 4.5 million users and accumulated nearly 60,000

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business-level managers using BIZ MBBank. Compared to the end of 2020, the
number of customers using MB Bank App increased by 120%, accounting for 75% of
MBBank's total individual customers. Total transactions on MB's digital channel
account for 94% of the number of transactions.

Through the numbers, we see the level of customer satisfaction with MB Bank's credit
card services.

III. Evaluation of MB Bank's card services and approach in the Vietnamese

market.

3.1 The Success of MB's Card Services

• Awards and Accolades:
- The Asian Banker Vietnam Country Awards: MB Bank was awarded the "Best
Credit Card Product in Vietnam" by The Asian Banker.
- Vietnam Outstanding Banking Awards: Recognized in multiple categories, including
"Best Credit Card Issuer" and "Best Loyalty Program."
• Scale and Customer Growth:
- Expanding card issuance networks and increasing customer numbers demonstrate
MB Bank's clear and effective development strategy. This may involve enhanced
marketing, product and service improvements, as well as building strong customer
relationships.
- The significant increase in transaction volume and value can be attributed to
enhanced card benefits and incentives, as well as expanding partnerships and card
acceptance networks.
• Technology and Convenience:
- MB Bank has implemented advanced technologies such as chip and PIN cards,
along with contactless payments, improving safety and convenience for card users.
- MB Bank's mobile application allows customers to manage cards, conduct
transactions, and receive notifications conveniently, enhancing user experience.

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These achievements of MB Bank not only represent numbers or awards but also
reflect their commitment and efforts in providing quality card services and meeting
the comprehensive needs of customers.

3.2 Limitations

3.2.1 MB Bank's Limitations in Card Services

o Fees and Charges: Some types of cards may impose fees and charges, such as
annual fees, international transaction fees, ATM withdrawal fees outside the
bank's network, and fees related to using services like SMS transaction
notifications. These fees can increase the overall cost for users.

o ATM Network and Card Acceptance Points: MB Bank's ATM network and
card acceptance points are not extensive, and users may encounter difficulties
when they want to use their services at locations outside the bank's coverage
area.

o Features and Additional Services: Compared to other banks, MB Bank's card

services lack some features and additional services, such as rewards programs,
special offers for cardholders, or convenient payment features like e-wallets.

o Security and Risks: Although MB Bank has security measures in place, there
are still risks associated with using the card, including card information theft,
transaction fraud, and unauthorized access to bank accounts through electronic
means.

o Flexibility and Convenience: MB Bank's card services do not provide flexible

features such as online money transfers, account management through mobile
apps, or the option to temporarily suspend the card when needed.

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3.3 Reasons of limitations

3.3.1. Business Environment Within The Limitation of MB Bank’s Service Card

• Internal:
- Business Strategy: MB Bank has decided to focus on developing lending products
such as home loans, auto loans, and personal loans. As a result, resources allocated to
card services are limited, leading to a lack of sufficient ATM networks or utility
features compared to banks that prioritize existing card services.
- Investment and Development Plan: The bank has chosen to invest primarily in
developing its digital banking system and mobile applications to provide the best
experience for customers in managing their finances. This may result in their card
services not being updated and developed synchronously.

• External:
- Technology Infrastructure: MB Bank's technology system has not reached the
highest level of flexibility and efficiency, resulting in the inability to implement
convenient features such as fast online money transfers or flexible account
management through mobile apps.
- Distribution Strategy: MB Bank focuses on developing its ATM network and card
acceptance points in densely populated areas such as major cities. Therefore, rural or
remote areas still face difficulties in using their card services.
- Legal Requirements and Regulations: Regulations regarding personal data security
and financial transactions are becoming increasingly stringent, raising the costs and
security system requirements for MB Bank. This may lead to imposing fees and
charges on users to offset these costs.

IV. Recommendation

4.1. Solutions for the limitations of MB Bank’s card services

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• Enhancing User Experience through Mobile App: Continuously developing and
upgrading their mobile app to provide the best user experience possible. This includes
improving the interface, adding features and utilities like online money transfers,
flexible account management, and offering online support services.
• Expanding ATM Network and Card Acceptance Points: Investing in expanding their
ATM network and card acceptance points, especially at public service locations such
as supermarkets, restaurants, shopping centers, to make it easier for customers to
access services and conduct transactions.
• Reducing Fees and Charges: Considering adjustments and reductions in fees and
charges related to customer card usage, such as transaction fees, withdrawal fees,
account management fees, to alleviate financial pressure and increase customer
satisfaction.
• Enhancing Offers and Promotions: Organizing diverse and attractive discount
programs, promotions, and incentives such as discounts at partner establishments,
point redemption rewards, gifts when using the card at stores, restaurants, service
points, etc.
• Investing in Security and Risk Management: MB Bank is increasing investments in
personal data and transaction security, as well as providing support services for
customers in case of security incidents such as lost cards, fraud, to build trust and
confidence among customers.
• Collaborating with Strategic Partners: The bank has partnered with strategic partners
such as card companies, payment organizations, to optimize services, expand the card
acceptance network, and introduce new benefits and utilities for customers.

4.2. Opportunities and Challenges of card services at MB Bank:

Opportunities:

• Market Growth: With the increasing adoption of digital payments, there’s a growing
market for card services.

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• Innovation: Continuous innovation in card features and technology presents
opportunities to attract and retain customers.
• Partnerships: Collaborations with merchants, fintech companies, and other
institutions can expand the reach and utility of card services.
• Customer Experience: Improving the convenience, security, and rewards associated
with card usage can enhance customer satisfaction and loyalty.

Challenges:
• Security Risks: With the rise of cyber threats, ensuring robust security measures to
protect cardholder data is paramount.
• Regulatory Compliance: Compliance with evolving regulations and standards, such
as PCI DSS, imposes operational and cost burdens.
• Technological Obsolescence: Keeping pace with rapid technological advancements
requires substantial investments in infrastructure and systems.
• Competition: Intense competition from traditional banks, fintech startups, and global
payment networks necessitates differentiation and agility.

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Conclusion
The birth of payment cards is a modern means of payment in today's world, it
makes an important contribution to improving payment work, restructuring and
promoting the economic development of our country during this period. next time. At
the same time, it has become an indispensable part of the business operations of banks
in general and of MB in particular.

Currently, payment cards are a modern tool with a lot of development potential and
are receiving special attention from banks. However, the road to developing the card
issuance and payment business ahead is still long with many difficulties and
challenges, requiring MB to overcome to be strong in competition and in the market.

Believe that, with solid experience in card business activities, an effective

management apparatus, and a team of dynamic and experienced staff, MB will
promote its advantages and overcome its difficulties quickly. the most effective way,
serving well the card development strategy of the entire MB system
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Reference

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