Consumer lending - the case of Techcombank
Hoàng Mỹ
Khoa Quản trị Kinh doanh
Luận văn Thạc sĩ ngành: Kinh doanh và quản lý; Mã số: 60 34 05
Người hướng dẫn: TS. Phạm Thị Nhuận
Năm bảo vệ: 2010
Keywords: Quản trị kinh doanh; Ngân hang; Cho vay; Người tiêu dùng
Content
TABLE OF CONTENTS
ACKNOWLEDGEMENT
ABSTRACT
TÓM TẮT
TABLE OF CONTENTS
LIST OF FIGURES AND TABLES
EXECUTIVE SUMMARY
INTRODUCTION
1

Background to the issue ………………………………….

9

2

Problem Statement and Research Objectives of the study

10

3

Scope and Limitation of the Research …………………..

11

4

Research Methodology ………………………………….

12

5

Research Structure ………………………………………

12

Chapter 1: COMMERCIAL BANK’S CONSUMER LENDING THEORETICAL FRAMEWORK FOR ANALYSIC
1.1

The Basis of Bank Lending …………………………….

14

1.2

The Basis of Consumer Lending ……………………….

17

1.2.1


The Concept of Consumer Lending ……………………..

17

1.2.2

The Nature of Consumer Lending ………………………

18

1.2.3

The Types of Consumer Loans …………………………..

19


1.2.4

The Effects of Consumer Lending ……………………….

24

1.2.5

The Factors Impacts on Consumer Lending ……………..

25

1.3


The Process of Consumer Lending……………………..

27

1.3.1

Receiving application and collecting information ………

28

1.3.2

Evaluating applications ………………………………….

29

1.3.3

Approving loans …………………………………………

32

1.3.4

Managing and collecting loans …………………………..

33

1.4


Precautions to be taken in granting consumer loans …..

34

1.5

Pricing and structuring of consumer loans .....................

35

1.5.1

Loan pricing ……………………………………………...

35

1.5.2

Loan structuring …………………………………………

37

1.6

Consumer Lending Quality …………………………….

37

1.6.1


Consumer Lending Quality from Different Perspectives ..

37

1.6.2

Measuring the Quality Consumer Lending ………………

39

Chapter 2: CURRENT SITUATION OF CONSUMER LENDING AT
TECHCOMBANK
2.1

Techcombank profile …………………………………….

44

2.1.1

History and Development ………………………………...

44

2.1.2

Vision and Mission ………………………………………

46


2.1.3

Techcombank’s Organization ……………………………

46

2.1.4

The Products ……………………………………………..

47

2.1.5

Achievements …………………………………………….

47

2.2

Current Situation of Techcombank’s Consumer Lending

47

2.2.1

Consumer Lending Process ………………………………

47


2.2.2

Consumer Lending Quality ………………………………

52

2.2.3

Quality of consumer loans ……………………………….

56

2.2.4

Quality of Service ………………………………………..

58

2.3

Assessment of the Techcombank’s Consumer Lending Quality
……………………………………………………

2.4

62

Development Trend of Techcombank’s Consumer Lending
…………………………………………………..


66


Chapter 3: CONCLUSIONS AND RECOMMENDATIONS
3.1

Conclusions ………………………………………………

68

3.2

Recommendations ………………………………………..

69

3.2.1

Developing the Outstanding of Consumer Loans ………...

69

3.2.2

Increasing in Capital Mobilization ………………………..

70

3.2.3


Clarifying the Responsibility of Professional Divisions ….

70

3.2.4

Applying and Revising the Credit Scoring System ……….

71

3.2.5

Applying Up-to-date Technology and Modern Equipments

72

3.2.6

Following Some Tactics in Evaluating Applications and Mitigating Credit
Risk ……………………………………

73

3.2.7

Expanding the Key Performance Indicators (KPIs) ………

74


3.2.8

Increasing the Quality of Information Provided by the Credit Information
Centre ………………………………

74

3.2.9

Enhancing Human Resource Quality ……………………

74

3.2.10

Responding to Changing Consumer Need and Purchasing Behavior
…………………………………………………

3.3

76

Limitations of the Research and Recommendations for Further Study
..................................................................

77

REFERENCES……………………………………………..

79


APENDIXES……………………………………………….

81

APPENDIX 1- QUESTIONNAIRE
APPENDIX 2- TECHCOMBANK ORGANIZATION CHART
APPENDIX 3: TECHCOMBANK’S PRODUCTS

References:
(a) Books and magazines
1. Behrens, C.F, 1952, Commercial Bank Activities in Urban Mortgage Financing
2. Bland, M.E, 1998, The Usefulness of Missing Information on Personal Loan Applications
in Differentiating Approved from Denied Loans and Late-Paying from Timely Paying
Loans, University of Mississippi


3. Bock, C., 1994, Credit-Get it: How to Get the Credit You Deserve, Handle Debt Wisely
and Build a Secure Financial Future, Action Publishing, Monument, Colorado.
4. Choi, D.Y., 1997, Service Competition in Retail banking, University of California, Los
Angeles
5. Duggan, A. & Lanyon, E. 1999, Consumer Credit Law, Butterworths, Sydney
6. Evan, D.S. & Schmalensee, R., 1999, Paying with Plastic: The Digital Revolution in
Buying and Borrowing, MIT Press, Cambridge, Massachusetts.
7. FDIC, 2007, Quarterly banking profile
8. Hochiminh City Security Corporation Report, 2009, Company Update, Feb 2009.
9. Hyman, L.R., 2007, Debtor Nation: How Consumer Credit Built Poswar America,
Cambridge, Massachusetts.
10. Iossa, E. & Palumbo, G., 2006, Overoptimism and lender liability in the consumer credit
market

11. Lawrence, D. & Solomon, A., 2002, Managing a consumer lending business, 1st edition,
Solomon Lawrence Partners
12. Linda, M.D., 1992, A prescriptive model for the control of commercial lending quality,
Georgia, US.
13. Lown, C.S., Morgan, D.P. & Rohatgi,S., 2004, Listening to Loan Officers: The Impact of
Commercial Credit Standards on Lending and Output.
14. Maki, M., 2000, The growth of consumer credit and the household debt service burden
15. Mann, R., 2006, Charging Ahead: The Growth and Regulation of Payment Card
Markets, Cambridge
16. Nilsen, J.H, 1999, Trade Credit and the Bank Lending Channel, Studienzentrum
Gerzensee.
17. Oesterreichische Nationalbank (OeNB) and Austrian Financial Market Authority (FMA),
Credit Approval Process and Credit Risk Management
18. Ostergaard, C., 1998, Essays on Bank Lending: Portfolio Risk and Consumer Credit,
Rhode Island.
19. Sathye, M, et al., 2003, Credit Analysis and Lending Management, John Wiley & Sons
Australia, Ltd, Australia.
20. Thomas, S., 2004, New ideas in credit process


21. Weaver, P.M. & Kingsley, C. D., 2001, Banking and Lending Practice, Lawbook
Company, North Ryde, New South Wales.
22. Weaver, P.M. & Shanahan, K.M. 1994, Banking and Lending Practice, Serendip,
Sydney.
23. Weerasooriya, W. 1998, Bank Lending and Sercurities in Australia, Butterworhs,
Sydney.
24. Wyman, O., 1999, Report of Credit Process Redesign: Rethinking the Fundamentals
b. Perodic Reports
1. HSB-MBA lecture documents
2. Techcombank’s annual report in 2006, 2007, 2008

3. Techcombank’s humance resource report 2007, 2008
4. Techcombank’s marketing report 2006, 2007, 2008
5. Techcombank’s retail credit documents
6. Vinacapital, Vietnam banking report in 2006
c. websites