MINISTRY OF EDUCATION AND TRAINING

NATIONAL ECONOMICS UNIVERSITY

Faculty of Corporate Finance

Enhancing Capital Mobilization at SeABank Thanh

Hoa City Branch

Teacher: Nguyen Thi Thanh Duong

Student: Le Huy Anh
Student ID: 11210407
Program: AEP
Class: Corporate Finance AEP 63A

Hanoi, 2025
 ACKNOWLEDGEMENTS
I want to thank the School Board of Directors, and all the teachers of the
Faculty of National Economics University for their dedicated teaching and giving
us valuable knowledge, creating conditions for me to have practical contact with
the environment inside the business through the internship program.
I also want to thank my teacher, Mrs. Nguyen Thi Thanh Duong who
wholeheartedly guided and helped me throughout the thesis process.
Furthermore, I would like to express my gratitude to the staff and members of
the SeABank Thanh Hoa City Branch for guiding and teaching me to learn about
the process as well as helping me understand the current situation in the bank
better.
With limited knowledge and limited skills, mistakes were made. I hope
teachers can sympathize and forgive me so that I can learn from those mistakes to
improve myself
I sincerely thank you!
Student

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 TABLE OF CONTENT
ACKNOWLEDGEMENTS………………………………………………………….i
STATUTORY DECLARATION………………………………………………….ii
ABBREVIATIONS……………………………………………………………..iii
LIST OF TABLES, FIGURES……………………………………………………..iv
EXECUTIVE SUMMARY……………………………………..………………..v
INTRODUCTION…...………………………………………………………….1
CHAPTER 1: BASIC THEORY OF THE ENHANCEMENT OF CAPITAL
MOBILIZATION AT COMMERCIAL BANKS……………………………...4
1.1. Overview of capital mobilization of commercial banks………………….4
1.1.1. Concept and characteristics of capital mobilization…………………….4
1.1.2. Forms of capital mobilization of commercial banks………………….…6
1.1.3. Risks in capital mobilization of commercial banks……………………...9
1.2. Overview of the enhancement of Capital mobilization at commercial
banks..…………………………………………………………………………..10
1.2.1. Concept of enhancing capital mobilization…………………………….10
1.2.2. The role of mobilized capital in the business activities of commercial
banks…………..………………………………………………………………...10
1.2.3. The evaluation of enhancing capital mobilization……………………...12
1.2.4. Factors affecting capital mobilization enhancement…………………...15
CHAPTER 2: CURRENT STATUS OF CAPITAL MOBILIZATION
ENHANCEMENT AT SEABANK THANH HOA CITY BRANCH……….18
2.1. Overview of SeABank…………….……………………………………….18
2.1.1. History of formation and development…………………………………18
2.1.2. Overview of SeABank Thanh Hoa City Branch………………………...19
2.1.3. Organizational Structure…….…………………………………………20
2.1.4. Main business activties at SeABank Thanh Hoa City Branch………….23
2.1.5. Business Performance………………………………………………….24
2.2. Current status of enhancing capital mobilization at SeABank Thanh
Hoa City Branch………………………………………………………………29
2.2.1. Overview of capital mobilization policies and procedures at SeABank
Thanh Hoa City Branch. ………………………………..………………………30
2.2.2. Current status of enhancing capital mobilization at SeABank Thanh Hoa
City Branch…………………………...…………………………………………34
2.3. Evaluation of the enhancement of capital mobilization at SeABank
Thanh Hoa City branch………………………………………..……………...45
2.3.1. Achievements...…………………………………………………………45
2.3.2. Limitations and causes...……………………………………………………45
CHAPTER 3: SOLUTIONS TO IMPROVE CAPITAL MOBILIZATION
AT SEABANK THANH HOA CITY BRANCH……………………………..48
3.1. Orientation of capital mobilization of SeABank Thanh Hoa City
branch………..…………………………………………………………………48
3.1.1. Business orientation of SeABank Thanh Hoa branch…………………..48
3.1.2. Orientation on capital mobilization of SeABank Thanh Hoa branch for
the 2025 – 2030 period…………………………………………...……………..49
3.2. Solutions to improve capital mobilization at SeABank Thanh Hoa City
branch…………………………………………………………………………..50
3.2.1. Encouraging staff to join in more targeted training.…………………...50
3.2.2. Improving accessibility through extended services..…….……….….....50
3.2.3. Promoting SeABank Thanh Hoa City branch’s reputation…..…………50
3.3. Recommendations
3.3.1. For the State Bank of Vietnam - Thanh Hoa branch……………….…..52
3.3.2. For the SeABank Headquarters………………………...………………54
CONCLUSION……...…………………………………………………………56
REFERENCES………,………………………………………………………..57
 STATUTORY DECLARATION
I formally declare that I have written the submitted Barchelor Thesis
independently. I did not use any outside support except for the quoted literature
and other sources mentioned at the end of this paper.
I clearly marked and separately listed all the literature and all sources which I
used as materials to produce this academic work, either literally or in content.
Ha Noi, ……

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 ABBREVIATIONS
LDR Loan-to-deposit ratio
EMV Earned media value
CUP Cuban Peso
JCB Japan Credit Bureau
ROE Return on equity
IFC International Finance Corporation
FDI Foreignn Direct Investment
VND Vietnamese Dong
USD United States Dollar
EUR Euro
SMEs Small and Medium Enterprises
CSR Corporate social responsibility
ESG Environmental, Social, and
Governance
SBV State Bank of Vietnam
APIs Application Programming Interface
KYC Know Your Customer
QR Code Quick Response Code
IT Information Technology

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 LIST OF TABLES, FIGURES
Picture 2.1. Organizational structure of SeABank Thanh Hoa City Branch……21
Table 2.1. Business results at SeABank Thanh Hoa City branch (2020 – 2024)
………...………………………………….……………………………….25
Table 2.2. Lending results at SeABank Thanh Hoa City branch (2020 – 2024)...
…………………………………………………………………………..26
Table 2.3. The overall business results of SeABank Thanh Hoa City branch from
2020 to 2024…………………………………………………………………….27
Table 2.4. The differences in each category over the years in SeABank Thanh
Hoa City branch from 2020 to 2024…………………………………………….28
Picture 2.2. Chart of business results of SeABank Thanh Hoa City branch from
2020 to 2024…………………………………………………………………….29
Table 2.5. Data that shows the capital mobilization through the growth rate of
mobilized capital at SeABank Thanh Hoa City Branch from the last 5
years……………………………………………………………………………..34
Table 2.6. Data that shows the capital mobilization by term at SeABank Thanh
Hoa City Branch from the last 5 years…………………………………………..36
Table 2.7. The difference of capital mobilization in term in each year from 2020
to 2024…………………………………………………………………………..36
Picture 2.3. Situation of capital mobilization by term from 2020 to 2024……...37
Table 2.8. Data that shows the capital mobilization by currency at SeABank
Thanh Hoa City Branch from the last 5 years…………………………………..38
Table 2.9. The difference of capital mobilization in currency in each year from
2020 to 2024…………………………………………………………………….38
Picture 2.4. Situation of capital mobilization by currency from 2020 to
2024......................................................................................................................39
Table 2.10. Data that shows the capital mobilization by customer segments at
SeABank Thanh Hoa City Branch from the last 5 years………………………..40
Table 2.11. The difference of capital mobilization in customer segments in each
year from 2020 to 2024………………………………………………………….40

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Picture 2.5. Situation of capital mobilization by customer segments from 2020 to
2024……………………………………………………………………………..41
Table 2.12. Data that shows the capital mobilization through deposit-to-debt ratio
at SeABank Thanh Hoa City Branch from the last 5 years……………………..42
Table 2.13. The growth rate of the total deposit and total outstanding debt in each
year from 2020 to 2024……………...…………………………………………..43
Table 2.14. Data that shows the capital mobilization through average
mobilization cost ratio at SeABank Thanh Hoa City Branch from the last 5 years.
…………………………………………………………………………….44
Table 2.15. The growth rate of the total cost and the mobilization cost in each
year from 2020 to 2024…………………….……………………………………44

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 EXECUTIVE SUMMARY
In Chapter 1, the thesis will provide the most general basis for capital
mobilization activities of commercial banks from concept and characteristics to
introducing many forms of capital mobilization of commercial banks so as to
emphasize the role of mobilized capital in the business activities of every
commercial bank with risk included, as well as learning about specific criteria in
evaluating the enhancement of capital mobilization at banks. In addition, the
thesis also provides some key roles of enhancing capital mobilization that help
banks to grow, thereby serving as a basis for SeABank in general as well as
SeABank Thanh Hoa City branch in particular to refer to and apply to other
banks’ operations.
Based on the theoretical basis in chapter 1, in Chapter 2, we dive into
analyzing the capital mobilization situation at SeABank Thanh Hoa City branch
to better understand the formation and development process of the SeABank in
general and SeABank Thanh Hoa City branch in particular. At the same time, we
deeply analyze the capital mobilization situation at SeABank Thanh Hoa City
branch using methods of comparison, analysis, charts and evaluating the branch’s
business performance in the last 5 years through financial indicators, thereby
helping us see the results that the branch has achieved as well as the limitations
and causes that still exist at the branch so as to provide insights to help the bank
improve in capital mobilization.
From the analysis and assessment of the current situation of capital
mobilization at SeABank Thanh Hoa City branch, in Chapter 3, the thesis has
proposed development directions and orientations in the near future as well as
some important solutions to improve the efficiency of capital mobilization at the
branch which would contribute effectively on business activities of SeABank in
general and Thanh Hoa City branch in particular.

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 INTRODUCTION
1. Rationale
To survive and develop, commercial banks must choose the most suitable
path, gradually affirm their reputation, their brand and improve their
competitiveness. The best method to solve our problem in the current context is
for commercial banks to increase more capital mobilization activities to meet the
country’s increasing development needs, thereby ensuring their ability to
mobilize capital, develop investment, lending activities and improve the
efficiency of its business operations.
Currently, SeABank is building a good relationship with its customers in the
lending market. However, the capital mobilization situation still faces certain
difficulties that have serious impact on the bank's business results. In reality,
SeABank's mobilizations are not yet in-depth, the scope of mobilization has not
been expanded and is not highly proactive. Firstly, the branch’s deposit products
lack differentiation compared to competitors, resulting in stagnant appeal for
medium-term savings. Secondly, the over-reliance on retail customers (59.82% of
total deposits in 2024) creates cost inefficiencies, as retail deposits typically incur
higher interest expenses than corporate or SME funds. Despite efforts to attract
SMEs and corporates, their combined share remained modest at 40.18% in 2024,
limiting the branch’s ability to optimize mobilization costs and diversify funding
stability.
Recognize the limitations of the mobilized capital in SeABank in general and
in Thanh Hoa City branch specifically, I have chosen the research topic:
"Enhance capital mobilization at Southeast Asia Commercial Joint Stock Bank
SeABank Thanh Hoa City branch".
2. Objectives
The general goal is to analyze and evaluate the current status of enhancing
capital mobilization at SeABank Thanh Hoa City branch, so as to give solutions
and recommendations to help improve the enhancement at SeABank. To achieve
it, it is necessary to follow these specific objectives:
- To systemize the basic theory of the enhancement of capital mobilization at
commercial banks

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- To analyze the current status of capital mobilization enhancement at SeABank
Thanh Hoa City branch
- To propose some solutions to improve capital mobilization at SeABank Thanh
Hoa City branch
3. Methodology
The thesis employs a mixed-methods approach to analyze capital mobilization
at SeABank Thanh Hoa City branch including:
- Qualitative analysis: Examines relationships between variables such as deposit
growth rates, customer segments, and mobilization costs. This method evaluates
non-numerical data, including organizational policies, customer feedback, and
market trends.
- Statistical analysis: With statistics, all of the data given from 2020-2024 will be
utilized to identify trends in key metrics:
+) Term Structure: Short-term (≤ 12 months), medium-term (12–60 months), and
long-term (> 60 months) deposits.
+) Currency Composition: VND, USD, and other foreign currencies.
+) Customer Segmentation: Retail, SMEs, and corporate clients.
+) Financial Ratios: Deposit-to-debt ratio, average mobilization cost ratio, and
capital growth rates.
- Comparative Analysis: Benchmarks SeABank’s performance against industry
standards and regional competitors to assess competitiveness.
Data sources also include SeABank’s annual reports (2020–2024), internal
financial statements, and macroeconomic indicators from the Vietnam General
Statistics Office.
4. Scope
Research object: Current status of capital mobilization enhancement at
SeABank Thanh Hoa City Branch from 2020 to 2024
Research scope: Focus exclusively on deposit mobilization (excluding bond
issuance and interbank borrowing) at SeABank Thanh Hoa City Branch from
2020 to 2024, analyzing term structures (short-term, medium-term, long-term),

11
currency composition (VND/USD/others), and customer segments
(retail/SMEs/corporate)
Research space: SeABank Thanh Hoa City Branch
5. Research structure
The topic is structured in 3 parts:
Chapter 1: Basic theory of the enhancement of capital mobilization at
commercial banks
Chapter 2: Current status of capital mobilization enhancement at SeABank
Thanh Hoa City branch
Chapter 3: Solutions to improve capital mobilization at SeABank Thanh Hoa
City branch

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 CHAPTER 1: BASIC THEORY OF THE
ENHANCEMENT OF CAPITAL MOBILIZATION
AT COMMERCIAL BANKS
1.1. Overview of capital mobilization of commercial banks
1.1.1. Concept and characteristics of capital mobilization
1.1.1.1. Concept of capital mobilization
According to Article 20 of the Law on Credit Institutions of Vietnam issued
No. 02/1997/QH10, it states: "A bank is a type of credit institution that is allowed
to carry out all banking activities and other related business activities”. While in
many countries around the world, the Banking laws state that: A commercial
bank is a financial intermediary whose regular task is to receive deposits and use
them for different purposes such as trading, credit, discount…..
Rose, P. S., & Hudgins (2020) explain that commercial banks’ capital is the
monetary values created or mobilized by the banks themselves, they accounted
for the largest number in the total capital of a commercial bank, which is around
70 – 80%, and played a vital role in all business activities such as lending,
investing or performing other business services.
Therefore, per Nguyen Anh Nam (2021), capital mobilization is the operation
of receiving capital from individuals and business organizations in many ways
within a certain period of time to create operating capital for the bank. And
thanks to capital mobilization, banks can measure the credibility and trust of
customers towards the bank, thereby promoting the increase in market share,
operational scale as well as status of the bank on the market.
A bank cannot operate without capital. But due to differences in the
organizational work and the role of each bank in the economy, the bank’s capital
needs are relatively high. The needs are met by the following capital sources:
- Equity capital: The bank’s equity capital is formed from 2 parts
+) Charter capital: It’s the initial capital and also a standard for the bank to be
put into operation. In terms of scale, charter capital must be greater than or equal
to legal capital (regulated by the State). However, for each different type of
operation of each bank, charter capital also has different sources of formation. It
represents the initial strength and operating ability of a bank.
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 +) Additional equity capital: Formed during the bank’s operation through the
appropriation of funds. Every year, the bank bases on its business performance to
deduct a portion of additional profits to the bank’s capital.
- Loans from the central bank: The central bank grants credit to commercial
banks in many forms such as: Lending, purchasing, refinancing, discount and
rediscount for valuable papers of commercial banks. Capital formed from this
source ensures the solvency of commercial banks.
- Harmonized capital sources in the system: Commercial banks have many
branches located in different areas, so there is always a situation of excess capital
or lack of capital for branches in the same system. The reason this situation
occurs is because each area has different socio-economic conditions, so it affects
the capital source and the ability to use of each branch.
- Mobilized capital: It is the monetary value mobilized by the bank through
some main operations including: Deposit operations, valuable paper issuance
operations and other intermediary operations. It’s also a source of capital that
banks can actively seek or passively create, either through lending or investment
operations. Therefore, banks adopt financial instruments with different interest
rates and repayment terms to maximize customers’ temporary idle funds.
Although commercial banks have to pay interest for this kind of deposit, it still
brings great profits to the bank
The nature of capital mobilization is that assets belong to different owners,
therefore banks only have the right to use, not to own and are responsible to
return both principal and interest or when customers need to withdraw capital to
pay before maturity. So, banks are not allowed to use all that capital for business
activities but must save up a reasonable proportion to ensure the bank’s solvency
1.1.1.2. Characteristics of capital mobilization
The capital in commercial banks is mobilized involves from a variety of
channels to mitigate risk and ensure stability. Financial institutions such as banks
source capital from retail deposits (individual savings accounts), corporate
accounts, interbank loans, and capital markets. Diversification prevents over-
reliance on a single source, which can be precarious during economic downturns.
For instance, during the 2008 financial crisis, institutions’ dependent on short-
term wholesale funding faced liquidity crises when markets froze. A balanced
mix of stable retail deposits and market-based funding enhances resilience.
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 Capital mobilization in commercial banks is characterized by a heavy reliance
on external funds, dwarfing equity contributions. Equity, such as charter capital
of a bank primarily serves as a regulatory safety net for operational risks, while
mobilized deposits drive profit generation. This structure allows banks to
leverage low-cost deposits to fund high-yield loans. However, this exposes banks
to liquidity risks if deposit withdrawals surge, implying strict adherence to SBV’s
reserve requirements
The banks’ mobilzed capital is different from its equity, therefore it must rely
on equity to make economic decisions in accordance with provisions of law. The
more capital mobilized, the more likely it is to promptly provide capital to the
economy, thereby promoting growth as well as enriching the bank. Only with
mobilized capital can banks do the credit intermediation function well.
1.1.2. Forms of capital mobilization of commercial banks
1.1.2.1. Mobilize capital from deposits
Bank deposits is the most important resource of commercial banks. When a
bank starts operating by opening deposit to hold and make payments for
customers, thereby mobilizing money from businesses, organizations and
individuals. To further increase the deposits in the competitive environment and
to obtain increasingly high-quality funds, banks have introduced and
implemented many different forms of mobilization, thus there are many types of
deposits.
1.1.2.1.1. Current deposits, demand deposits
These are customer deposits for payment purposes, the sender can pay (or
withdraw) at anytime. For commercial banks, payment deposits are an attractive
source of mobilized capital because the cost for this type of deposit is the lowest
among all types of deposits. However, payment deposits usually accounts for a
low percentage of the total capital, so banks seek to attract and retain customers
through forms such as: Advertising, promotions, creating favorable conditions for
customer services in terms of time, speed or even being willing to reduce costs
and preferential fees for customers, by taking profits from using these
temporarily idle capital sources to compensate for payment fees that customers
are supposed to bear. With this kind of capital mobilization, there are lots of
assets in the market with different names that can satisfy customers’ needs such
as: Ordinary payment deposits, collection deposits, self-investment deposits,
15
capital deposits, direct investment capital deposits, indirect investment capital
deposits…..
The main advantage of this is its low interest rate. When a bank has a large
demand deposit ratio, the average capital mobilization interest rate is low,
helping to reduce capital mobilization costs. However, this deposit is not stable
because it is deposited and withdrawn without notice. Therefore, banks do not
take the initiative in using capital resources
1.1.2.1.2. Term deposit
Term deposit is the monetary value that customers usually deposit in banks
with an agreement on when to withdraw. This type of deposit is for both
individuals and corporate customers. Those who deposit term money at the bank
will be able to withdraw money in advance either in parts or the entire amount.
Customers who withdraw money before maturity will only be charged with early
withdrawal interest rate (Lower than demand deposit interest rate). The main
purpose for customers is to make a profit and the bank can be proactive in using
it because of the term of the capital source. The specific interest rate depends on
the deposit term and and the agreement between the bank and the customer on
consideration of the bank’s safety level as well as the relationship between supply
and demand of capital at that time. One key feature of term deposit is that the
amount of money is not returned to depositors until a certain date, which helps
the bank be more active in receiving capital from time to time, so using this
source for lending is very effective. However, the interest rate to mobilizing this
capital source is higher than demand deposits, depending on the deposit term and
the customer’s deposit
1.1.2.1.3. Saving deposit
According to Cỉcular No. 48/2018/TT-NHNN, savings deposit is for
Vietnamese. This is a type of deposit where an individual’s money account is
deposited into a savings deposit account, confirmed on the savings card
Demand savings deposit: A form of savings in which individuals withdraw
money, no prior notice required. The interest rate of this form is lower than that
of term deposits. Normally, it is chosen by individual customers who want the
bank to keep money for a while and withdraw when necessary. Therefore, this is
a form of short-term capital mobilization.

16
 Term savings deposit: This is a type of deposit that customers send their
money under a time agreement with the bank, only withdrawing money when the
agreed terms arrived. In special cases, if you withdraw before the maturity date,
the interest rate will be much lower. The interest rate on term savings deposit is
higher than demand savings deposit. In principle, customers can only withdraw
capital when it matures. If withdrawn before maturity, it must have the approval
of the bank and can only receive interest on early withdrawal.
This is the capital that has the most stability and takes accounts for a fairly
high percentage. But because this type of deposit’s purpose is to save, the interest
rate is high, leading to the increase of capital mobilization costs.
1.1.2.2. Issuing valuable papers
Valuable papers (bonds, certificates of deposit) are debt instruments issued by
banks to mobilize capital in the market. This source of capital is relatively stable
to use for a certain purpose. The interest rate of this type depends on the urgency
of capital mobilization, so it’s usually higher than the interest rate on regular term
deposit.
Specifically, a bond is a deed confirming the debt of the issuing organization
to the owner, which commits to repay the debt with interest within a certain
period of time. Through bond issuance, banks can attract medium and long-term
capital to lend to expand production, business and investment. Issuing bonds will
attract a stable amount of money in the long term, so bond issuance can only be
done when the bank really needs a large amount of capital or when the bank has a
plan to use capital for medium and long-term loans.
Valuable papers often have long terms (over 12 months) so they have
stabilities included. Therefore, banks can be proactive in using this capital source
for medium and long-term loans. However, because the interest rate to mobilize
capital from issuing papers is not higher than the savings interest rate along with
the long term, while the liquidity is low, this form of capital mobilization is
difficult to attract customers.
1.1.2.3. Mobilizing capital through loans
Borrowed capital is the borrowing relationship between commercial banks
and central banks, or between credit institutions in the interbank market
1.1.2.3.1. Lending from the Central bank

17
 This is a loan to address the urgent needs of commercial banks. In case of
reserve shortage (shortage of required reserves, payment reserves), commercial
banks often borrow from the central bank. The lending form of the Central bank
is mainly rediscounting valuable papers or refinancing
1.1.2.3.2. Lending from other credit institutions
This is the source that commercial banks borrow from each other and from
other credit institutions in the interbank market. Banks that are holding excess
reserves due to unexpected increased in deposits or reduced lending may be
willing to lend other banks in search of higher interest rates. On the contrary,
banks with a shortage of reserves have an immediate need to borrow to ensure
liquidity. Thus, capital borrowed from other banks is to meet urgent reserve and
payment needs and in some cases, it can either add or replace borrowings from
the Central bank. The loan may be unsecured or secured by State Treasury
securities.
1.1.3. Risks in capital mobilization of commercial banks
Increasing capital mobilization is essential for banks to develop their
operations business, but the accompanying risks are not small and need to be
tightly managed. Risk comes from the decline in efficiency of lending and
investment activities when there is a surplus of capital mobilization. At each
time, investment opprotunities and the economy’s ability to absorb capital are
limited. If the amount of capital is mobilized too quickly and is not fully used, it
will lead to waste. Commercial banks adopt the form of “borrowing to lend” to
make profits while their own capital is not large. When the bank’s mobilized
capital is stagnant, this means that bank can’t lend out or use it all, while the bank
still has to pay interest to depositors, cover operational and management costs. If
this situation is not remedied, the level of losses will become larger and larger.
Mobilizing too much capital will cause much waste for banks. Lack of
mobilized capital also affects investment quality, reducing bank profits
Risks in capital mobilization of commercial banks also come from interest rate
risks. When the term of mobilized capital is shorter than that of investments, if
market interest rates tend to increase, banks will have to mobilize capital at
higher interest rates to continue maintaining investments and loans. On the
contrary, when the term of capital use is shorter than the term of mobilized

18
capital, the bank will face the risk of reduced profits when market interest rates
decrease.
If the bank uses too much short-term capital to invest in long-term credits, the
bank will face liquidity risk. While the debts are not yet due for collection,
liquidity pressure from customers will force banks to accept additional capital
mobilization at high interest rates to pay customers or worse, to lose the ability to
pay. On the other hand, if a bank uses long-term capital to lend short-term, it will
be dificult to ensure revenue because long-term capital mobilization often has
high interest rates while short-term loans have lower interest rates than medium
or long-term loans.
1.2. Overview of the enhancement of capital mobilization at commercial
banks
Capital mobilization is the lifeblood of a commercial bank. It fuels lending
activities, investments and overall growth. Enhancing this process is crucial for a
bank’s competitiveness and stability
1.2.1. Concept of enhancing capital mobilization
Enhancing capital mobilization is a strategic, theory-driven process through
which commercial banks optimize the structure, cost, and growth of funds by
balancing six core indicators: term diversification, currency mix, customer
segmentation, capital mobilization’s growth rate, average mobilization cost ratio,
and deposit-to-debt ratio. Grounded in financial intermediation and risk
management theories, this framework ensures banks achieve sustainable
liquidity, profitability, and competitiveness.
1.2.2. The role of mobilized capital in the business activities of commercial
banks
1.2.2.1. For the economy
Savings and investment are the foundations of the economy. They have a
causal relationship, savings contribute to promoting and expanding production
and business development, while investment also contributes to encouraging
savings. However, in the economy, savings are often small and scattered, and the
pioneers in assembling capital most effectively are commercial banks. Through
capital mobilization channels, savings are converted into investment, contributing
to increase the efficiency of the economy.

19
 Capital mobilization by banks helps the economy to have a capital balance,
improving the efficiency of capital use. Investment opportunities always have
conditions to be implemented. The process of expanded reproduction will be
carried out more easily with capital mobilization by commercial banks. For
instance, small and medium enterprises (SMEs) rely on bank loans to expand
operations, driving job creation and innovation. According to the World Bank in
2022, financial intermediation by banks contributes significantly to GDP growth,
particularly in emerging markets where access to capital is critical for
development. Although capital mobilization can be carried out through many
channels such as the stock market, the state budget... but in the current conditions
of our country, capital mobilization through commercial banks is still the main
and the most important form.
1.2.2.2. For commercial banks
Capital is the basis of business organization in all industries. Every business
activity has a combination of three factors: “Technology – Capital – Motivation”.
In particular, capital plays an important role which reflects the main ability to
determine business capabilities. Banking business activities are no exception to
that rule. With the characteristics of banking operations, capital is both a mean of
business and a business object of the bank. Capital is the first point in a bank’s
business cycle. In addition to the necessary initial capital, which is enough
charter capital according to the regulations of the Central bank, in order to
operate, the first thing a bank must do is to mobilize capital. Mobilized capital
will allow disbursement lending, investment…. to earn profits, the amount of
capital a bank can mobilize can determine the ability to expand or narrow down
the credit. The more capital mobilized the more loans you can lend and bring
high profits to the bank.
In the market economy, if commercial banks want to survive and develop, the
bank needs to create a great reputation in the market. The reputation of
commercial banks is based on their ability to concentrate capital and the
willingness to pay customers. With the ability to mobilize high capital, banks
have the conditions to increase business activities, diversify many types of
services, and expand business scale to a larger and larger extent. Large capital
helps banks not miss investment opportunities, minimize risks, contributing to
both maintaining credibility and enhancing the bank’s position in the
marketplace.
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 Furthermore, large mobilized capital will prove that the bank’s scale,
professional level and technical means are modern. This is a favorable condition
for banks in expanding credit relationships with economic sectors, which also
attracts more and more customers and the bank’s operational sales will increase
rapidly, so banks will have more advantages in business. At the same time, large
capital will help banks have enough financial capacity to do versatile business in
the market, not only simply lending and investing, but also expanding forms of
joint ventures, partnerships, financial leasing, and trading on the stock
market……. These versatile business forms contribute to dispersing risks in
business activities, creating capital for banks, and increasing the bank’s
competitiveness in the market.
1.2.2.3. For customers
With the emergence of commercial banks, most of the payments for goods
and services of society are made through banks with many forms of payment that
are increasingly convenient and fast. Specifically, commercial banks will be
payment intermediaries according to customers' requests.
For those with idle capital: The bank's capital mobilization will first of all
help them with interest or payment services, while the money will always be in
motion and circulating.
For those who need capital: They will have the opportunity to expand
investment and develop production and business from the bank's mobilized
capital.
Currently, commercial banks provide customers with many convenient
payment methods such as checks, payment orders, payment cards, credit cards...
depending on their needs, customers can choose non-cash payment methods.
Also, commercial banks have the ability to create money, which clearly
reflecting the nature of commercial banks. This function is performed on the
basis of the credit intermediary function and the payment intermediary function.
Through the credit intermediary function, banks have used the mobilized capital
to lend. The loan amount is used by customers to pay for transfers, make
purchases and sales for customers at other banks, and only when performing
lending operations does the bank start to create money.
1.2.3. The evaluation of enhancing capital mobilization

21
 1.2.3.1. Capital mobilization’s growth rate
The very first issue of concern when considering a bank’s ability to mobilize
capital is the growth rate of its mobilized capital. In general, the growth rate of
capital mobilization can fully demonstrate the ability and efficiency of
mobilization of commercial banks through the increase or decrease of capital
sources as well as the fluctuations in each year. If its scale is large enough, it
would allow the bank to expand its business activities, improve liquidity and
capital’s stability. The scale of mobilized capital of commercial banks is
evaluated as followed:

Mobilized Capital Growth Rate =

( Total Mobilized Capita l Yeart −1 )
Total Mobilized Capital Year t−Total Mobilized Capita lYear t −1
×100

This metric quantifies year-on-year changes in deposit volumes, highlighting

the effectiveness of marketing strategies, customer trust, and market
competitiveness. A positive growth rate indicates successful penetration into new
customer segments or retention of existing depositors.
For term-specific growth analysis, deposits should be evaluated across
maturity buckets to assess liquidity risks and customer behavior

+) Short-term growth rate = ( Short −term deposit st −Short −term deposit st −1

Short−term deposi t t−1 )x

100
For short-term growth rate, its high growth reflects customer preference for
liquidity but exposes banks to refinancing risks if used for long-term loans.
Conversely, stagnation may indicate uncompetitive rates or weak customer
retention.
+) Medium-term growth rate =

( Medium−term deposit st −Medium−term deposit s t−1

Medium−term deposit s t−1 )
x 100

In medium-term growth rate, its steady growth signals customer confidence in

the bank’s stability, supporting medium-term lending like SME working capital
or those who want to save their money from 12 to 60 months
Long−term deposit s t −Long−term deposit s t−1
+) Long-term growth rate = ( )x
Long−term deposit s t−1
100

22
 The growth in long-term deposits is critical for funding infrastructure or
mortgage loans. A decline may necessitate higher borrowing costs from external
markets.
Retail deposit st −Retail deposit s t−1
+) Retail deposit growth = ( ) x 100
Retail deposit st −1

For retailers, its deposits are costlier but stable and its declining growth may
signal eroded trust or competition from fintech platforms.
+) Corporate/SME deposit growth =
Corporate deposit s t −Corporate deposit s t−1
( ) x 100
Corporate deposit s t−1

Strong corporate growth reflects successful cash management services or

trade finance solutions, while SMEs stagnation could indicate inadequate product
customization.
1.2.3.2. Deposit-to-debt ratio
To evaluate the ability to meet capital needs, the bank often uses indicators to
compare mobilized capital with credit and liquidity needs to see how much
mobilized capital can meet.
Formula:

ሺ 𝐓𝐨𝐭𝐚𝐥 𝐃𝐞𝐩𝐨𝐬𝐢𝐭𝐬ሻ
𝐃𝐞𝐩𝐨𝐬𝐢𝐭− 𝐭𝐨− 𝐃𝐞𝐛𝐭𝐑𝐚𝐭𝐢𝐨 = × 𝟏𝟎𝟎
ሺ 𝐓𝐨𝐭𝐚𝐥 𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠𝐃𝐞𝐛𝐭ሻ

This ratio shows whether mobilized capital is sufficient to meet the bank’s capital
needs or not, it also reflects the balance mobilized capital and the bank’s credit
activities.
If this ratio > 1, it means that the deposit capital is sufficient to meet the
bank’s borrowing needs
If this ratio < 1, it reflects that the deposit capital is not enough to meet the
bank's borrowing needs.
If this ratio = 1, it reflects that the deposit capital is just enough to meet the
bank's borrowing needs....
1.2.3.3. Average mobilization cost ratio

23
 The bank’s mobilization costs include interest costs, operating costs and other
costs. In the total mobilization costs, interest costs account for the largest
proportion, which is why it affects the bank’s profits, The higher interest rate, the
more deposits can be mobilized. However, high interest rates will increase the
bank’s mobilization costs. Therefore, it is crucial to calculate the ratio of average
mobilization cost carefully in each period.
The average mobilization cost ratio is calculated as follows:
MobilizationCost
Average Mobilization Cost Ratio= ×100
Total Cost

The average mobilization cost ratio shows how much cost the bank needs for
each VND of capital. The lower the ratio, the more efficient the bank’s capital
mobilization is, and when comparing between reporting periods, if the next
period is lower than the previous one, it implies that the bank has saved costs and
improved efficiency of mobilizing capital.
1.2.4. Factors affecting capital mobilization enhancement
1.2.4.1. Internal factors
1.2.4.1.1. Reputation and recognition
The fact that people choose to deposit money in banks not only to earn
interest but also to minimize the risk of holding it is a good way to keep
customers’ money safe. Therefore, they will choose banks with lots of prestige,
high quality and recognition in the market
A bank is assessed through its long-term operation and its achievements.
Those with high reputation and recognition will have more advantage in
attracting customers than others because banks operate based on customers’ trust
1.2.4.1.2. Interest rate
Interest rate is considered the main price of financial products and services.
Any individual or corporation when depositing money in banks is interested in
the profits they achieve, so interest rate is the first thing they care about. For
capital mobilization, interest rate policy is a decisive factor that play an important
role in achieving goals that are set in stone
If the mobilizing interest rate is high, it will directly affect the business
efficiency of the bank and vice versa, if the interest rate is low, the bank will have
difficulty attracting capital as planned. Therefore, to maintain and attract more
24
capital, the bank needs to set competitive interest rates, offer many preferential
policies on prices for large customers, customers who deposit money regularly to
ensure that they can mobilize the necessary capital and do business effectively.
1.2.4.1.3. Facilities and networking distribution
The distribution network is closely linked to the convenience that a bank
brings to customers. With a wide distribution network, customers will have easier
access to its services. If a bank does not have branches or transaction offices in
areas where other banks already operate, it will lose its competitiveness in
mobilizing capital in these areas.
The facilities also contribute to building the bank's image in the eyes of
customers. To promote mobilization, branches or transaction offices need to
focus on residential areas, convenient transportation, key areas and must be
distributed appropriately according to each area. Branches or transaction offices
must ensure that they are both modern and customer-friendly to create a sense of
closeness and comfort for customers when coming to do transaction.
1.2.4.1.4. Staff
With the recent trends of AI and the related-technologies, it’s gradually
becoming the main productive force, however, people still affirm their central
position. In the financial sector specifically, people are the decisive factor in the
success or failure of commercial banks' business activities in general and capital
mobilization in particular. A team of good staff will help the bank operate its
system well to bring about the best business efficiency. For capital mobilization,
a team of staff with solid expertise, attentive and friendly to customers will create
a good feeling with customers, attracting more customers to transact at the bank.
To improve mobilization efficiency, banks must have a team of competent
staff, trained thoroughly in both skills and expertise, and must also grasp a lot of
knowledge in different fields.
1.2.4.2. External factors
1.2.4.2.1. Economic environment
The domestic and international economic situation has a significant impact on
capital mobilization in commercial banks. Changes in factors such as economic
growth rate, inflation rate, per capita income,….. will greatly affect the capital
mobilization activities of banks.

25
 In the context of economic development and stable income of the people, the
cash inflow and outflow of banks is stable, the mobilized capital also increases
significantly, investment opportunities are increasingly expanded. On the
contrary, if the economy is in recession, inflation increases, causing the
investment environment of banks to narrow, making the capital mobilization
process of banks more difficult.
1.2.4.2.2. Socio-cultural environment
The socio-cultural environment is a factor that needs to be considered in
banking business activities. Each country has its own culture, it’s the factor that
creates national identity such as customs, habits, intellectual level, lifestyle...
Specifically, in developed countries, people have an understanding of
banking and they are aware of the importance and benefits that banks bring, they
will deposit more money in banks and thus the proess of capital mobilization will
be much more convenient.
However, in developing countries like ours, people don’t have the habit of
using convenient banking services but still keep the habit of storing cash, gold,
silver and foreign currency at home, so this is also a factor that strongly affects
capital mobilization at commercial banks.
1.2.4.2.2. The rise in competition with other banks
Competition among the financial services sector is becoming fierce as
commercial banks and competitors expand their product and service portfolios.
Competitive pressure acts as a driving force for future service development.
While competition forces commercial banks to constantly innovate and improve
the quality of their operations, it will also make commercial banks more
transparent to people and businesses, creating more equality between commercial
banks and customers. Competition in the capital mobilization activities of banks
can be considered from the perspectives of customers, competitors, and the
products and services provided by banks.

26
 CHAPTER 2: CURRENT STATUS OF CAPITAL
MOBILIZATION ENHANCEMENT AT SEABANK
THANH HOA CITY BRANCH
2.1. Overview of SeABank
2.1.1. History of formation and development.
Known as one of the leading groups of the largest joint stock commercial banks
in Vietnam in terms of charter capital, operating network as well as brand
awareness, Southeast Asia Commercial Joint Stock Bank (abbreviated as
SeABank) has had a steady growth rate over the years.
It can be affirmed that SeABank is a 100% private bank established with large
capital advice from domestic and foreign consultants. However, the State Bank is
still able to manage and control all financial and business activities of this Bank
according to general provisions of laws
Established in 1994, SeABank currently has a charter capital of 24,537 billion
VND, and total assets of more than 245,206 trillion VND. The bank has 181
branches and transaction points across 3 regions of the country.
From 1994 to 2010:
According to the SeABank’s annual report in 2020, its predecessor was Hai
Phong Commercial Joint Stock Bank, established in Hai Phong in 1994, then
changed its name to Southeast Asia Commercial Joint Stock Bank (SeABank) in
2002
In 2005, the Head Office was moved to Ha Noi and began to grow strongly in
scale, capital and assets. At the end of 2016, SeABank successfully applied T24
core banking management software after only 1 year of implementation. That
was the foundation for the bank to launch diverse and professional products.
In 2007, SeABank’s domestic strategic shareholder was VMS-MobiFone. 1
year later, the bank had a foreign strategic shareholder, the leading EU financial
group Société Générale in France.
In 2010, the bank issued SeABank MasterCard cards using highly secure EMV
chip technology and opened a representative office in Saigon
From 2011 to 2019:

27
 SeABank has become one of the first banks in Vietnam to accept all types of
international cards including MasterCard, Visa, CUP, JCB, American Express in
2011
In 2012, the bank introduced the first multi-service Automatic Banking Service
(Autobank), with basic banking functions meeting international standards. Also
this year, SeABank became the official agent in Vietnam of Western Union, This
is the world’s leading money transfer service company.
In the following years, SeABank in turn signed comprehensive cooperation
agreements with PVI Joint Stock Company, Mercedes-Benz, Vietnam Post
Corporation – VNPost and 5 Big C supermarkets in Ha Noi
By 2016, a member of the Eurogiro community – an alliance between banks
and postal organizations in many countries. In 2018 and 2019, the bank increased
its charter capital to 7,688 billion VND and 9,369 billion VND.
From 2020 to present:
In 2020, the bank’s charter capital increased to 12,087 billion VND. At the
same time, SeABank was approved to list more than 1.2 billion shares with the
stock code SSB on the HOSE exchange.
With effective solutions, the bank’s 2021 business results are said to be 1.5
years ahead of the 5-year plan (2021-2025). Thanks to consecutive years of
growth, the banks expects to conquer more achievements in the upcoming years
In 2023, the number of customers transacting at the bank will reach over 3
million. SeABank also recorded 2023 pre-tax profit of more than 4,616 billion
VND, corresponding to a return on equity ratio (ROE) of 12.03%.
2.1.2. Overview of SeABank Thanh Hoa City Branch
On November 29th 2010, SeABank Thanh Hoa City branch was formed at 10
Le Loi Avenue, Dien Bien Ward, Thanh Hoa City and was the 100th transaction
point of SeABank nationwide.
SeABank Thanh Hoa in particular and all SeABank transaction points in
general are applying a new retail-oriented organizational model and complying
with the standards of the international retail banking model to provide customers
with the best quality of service with the highest standards from staff to interior
and exterior equipment… Thanh Hoa branch is connected online to the bank’s
Head Office and all transaction points throughout the SeABank system and will
28
deploy all products and services for individuals and businesses as well as other
savings mobilization and promotional programs of the bank.
With a rich system of products and services, Thanh Hoa City Branch will
meet maximum needs, meeting the diverse financial transaction needs of
customers in the area, providing comprehensive financial solutions to reduce
pressure and improve competitiveness for businesses. Thanh Hoa City branch has
provided banking and financial services such as account services, economical
services, domestic card, international card, payment debit card, digital bank, life,
vnon-life insurance and other financial consulting services to comprehensively
meet the needs of customers.
The branch also has achievements that are worth mentioning. On December
26, 2023, nearly 6,000 teak and tissue-hybrid acacia trees - forestry trees that
comply with regulations on dispersed trees and forest planting worth more than
300 million VND were donated by the SeAGreen Fund under SeABank to the
Protective Forest Management Board of Nhu Thanh district, Thanh Hoa
province.
With the desire to contribute to supporting forest protection, environmental
protection, combating climate change, and contributing to the locality's
successful implementation of the Prime Minister's Decision approving the Project
"Planting one billion trees in the period 2021 - 2025", SeAGreen Fund of
SeABank has decided to donate nearly 6,000 teak and acacia hybrid trees
equivalent to a planting area of 3 hectares to the Nhu Thanh Protective Forest
Management Board with a total value of more than 300 million VND to plant
trees in Nhu Thanh district - Thanh Hoa province. In particular, teak is a large
tree with a fast growth rate, high flexibility and durability, good bearing capacity,
with great adhesion, which will help protect the soil, limit natural disasters,
regulate the climate and contribute to protecting the ecological environment.
2.1.3. Organizational Structure

29
 Board Of
Directors

Other
Customer Priority Coporate Individual
Operations Treasury Transaction
Service Cutstomer Customer Customer
Department Department Offices in the
Department Department Department Department
area

Picture 2.1. Organizational structure of SeABank Thanh Hoa City Branch

(Source: SeABank Thanh Hoa City Branch)
Board of Directors
Including 1 Director and 8 Deputy Directors. Executive Director directly
directs and assigns work tasks within the Board of Directors.
Customer Service Department
It’s a direct transaction department with individual customers. The function of
the department is to provide services in accordance with current regimes, rules
and regulations of the Southeast Asia Commercial Joint Stock Bank for
individual customers, such as opening personal accounts, opening savings
accounts, transfer and receiver money, pay bills, provide banking services such as
Internet Banking, SMS Banking….
Priority Cutstomer Department
It’s a program exclusively for customers who have large and frequent
transactions with the bank. The deposit balance and credit balance must reach a

30
minimum of 1 billion VND, even 2 billion VND for large banks, to register to
become a member of these special programs
With such limited participation conditions, SeABank offers a series of special
incentives such as free transactions, no waiting in line, specialize accumulation
investment consulting with a personal financial expert as well as attractive and
priority financial products.
Corporate Customer Department
It’s a professional department that deals directly with customers who are
businesses and economic organizations. The function of the department is to
provide services in accordance with current regimes, rules and regulations of
Southeast Asia Commercial Joint Stock Bank for organizational customers, such
as opening accounts for businesses and economic organizations, monthly payroll
services, international payment services, guarantee services…..
Individual Customer Department
It’s a professional department working with individual customers to exploit
capital in VND and foreign currencies, perform related operations to credit,
managing credit products in accordance with current regimes, rules and
regulations of the Southeast Asia Commercial Joint Stock Bank, directly
advertise, introduce and sell banking products and services to individuals.
Operations Department
It’s a department responsible for managing and operating SeABank’s daily
activities, ensuring all processes and transactions including deposits, loans,
transfers, payments and other transactions…. go smoothly and efficiently. They
are responsible for many things such as storing and managing transaction
records, contracts and other important documents or ensuring safety and enough
to serve customers. They also coordinate with the treasury department to preserve
SeABank’s valuable assets
The operations department plays a key role in ensuring the continuous and
efficient operations of the bank. If the operating room does not function well, it
can cause damage to customers or affect SeABank’s reputation and service
quality.
Treasury Department

31
 It’s the department for sale management of treasury and cash fund management
according to regulations of Southeast Asia Commercial Joint Stock Bank, which
is to deposit and collect for savings funds, transaction points inside and outside
the counter, collect and spend money for businesses with large cash revenues and
expenditures.
Its main function is to ensure SeABank’s financial health and ability to meet its
obligations by managing liquidity, investments and risks. It also seek to optimize
returns on investments and minimize funding contributing to the bank’s
profitability. And by managing capital and funding, it enables the bank to expand
its operations and pursue strategic intitatives.
Other Transaction Offices in the area
The Transaction Offices in Thanh Hoa City Branch operate with a model like a
minature branch, with most functions such as: Services for individual customers
and organizational customers, personal credit, small or medium-sized business
credit… They serve as a bridge between the bank and customers, allow
customers to access and use SeABank’s services comfortably, thereby increasing
the quality of SeABank’s services and make contribution to the bank’s success.
2.1.4. Main business activties at SeABank Thanh Hoa City Branch
With a customer-centric business development strategy, SeABank has been
diversifying flexible deposit products according to customer needs, ensuring
attractiveness and competitiveness. Product catalog of SeABank is managed
uniformly throughout the system. Therefore, all products that are being provided
to customers are managed and deployed from the Head Office. However, based
on the competitive characteristics in the area where SeABank Thanh Hoa City
branch flexibly applies interest rate policy.
2.1.4.1. Business activities
The branch primarily raises funds through diversified deposit products
tailored to individual and business clients. Retail customers form the largest
segment, attracted by flexible savings accounts, competitive interest rates, and
promotional campaigns. Products include short-term, medium-term, and long-
term deposits, with a growing emphasis on digital channels like mobile banking
for account opening and transactions. Foreign currency deposits, particularly in
USD, have gained traction due to remittances and international trade needs.

32
 However, the branch faces challenges with high costs linked to retail deposit
reliance and struggles to attract corporate deposits, which remain a smaller
portion of its funding mix. Innovations such as blockchain integration and
gamified savings programs aim to enhance transparency and customer
engagement
2.1.4.2. Lending activities
Deployed funds are channeled into loans for individuals, SMEs, and
corporations, with a focus on balancing risk and profitability. Retail lending
includes personal loans, mortgages, and credit cards, while SMEs benefit from
working capital financing and trade credit. Corporate clients, especially in sectors
like manufacturing and renewable energy, receive tailored solutions such as
project financing and green loans. The branch prioritizes risk management
through collateral requirements, AI-driven credit assessments, and adherence to
liquidity regulations. Sustainability initiatives, such as loans for solar energy and
eco-friendly projects, align with broader environmental goals. Despite strong
performance in credit quality, the branch navigates challenges like liquidity
pressure from rising loan demand and the need to diversify its lending portfolio
2.1.5. Business Performance
2.1.5.1. Capital mobilizing results in the last 5 years

Target Year

2020 2021 2022 2023 2024

Total Deposits (Billion 6,250 7,375 8,550 9,750 11,700

VND)
Growth rate (%) - 18 15.93 14.03 20

Deposit Structure (%
of Total)

< 12 months 51.2 52.2 52.6 51.3 49.57

12–60 months 28 27.7 27.1 26.6 23.9

> 60 months 12.8 12.5 13.1 15.4 20.5

33
 Non-term 8.0 7.4 7.0 6.7 6.0

Currency Mix (%)

VND 93.6 92.8 91.2 89.2 88.4

USD 4.4 4.74 5.8 7.6 8.54

Others 2.0 2.46 3.0 3.02 3.06

Retail vs. Corporate

(%)

Retail customers 60.8 61 61.4 61.5 59.82

SMEs 22.4 22.3 22.2 22.56 22.2

Corporate clients 16.8 16.69 16.4 15.94 17.98

Mobilization Cost Ratio 54.2 57.9 57.8 56.2 57.1

Table 2.1. Business results at SeABank Thanh Hoa City branch (2020 – 2024)
(Source: SeABank Thanh Hoa City Branch Annual Reports (2020–2024))
Overall, SeABank Thanh Hoa City Branch demonstrated consistent growth in
capital mobilization, with total deposits increasing from 6,250 billion VND in
2020 to 11,700 billion VND in 2024. Retail customers dominated the deposit
structure, accounting for 59.82% of total deposits in 2024. The branch diversified
funding sources through short-term deposits (< 12 months), which constituted
49.57% of total deposits in 2024, though this proportion declined from 51.2% in
2020 due to rising competition and shifting customer preferences toward long-
term savings. Foreign currency deposits, particularly USD, grew significantly,
reaching 8.5% of total deposits in 2024, driven by remittances and FDI inflows in
Thanh Hoa Province.
2.1.5.2. Lending
Target Year

2020 2021 2022 2023 2024

34
 Total 4,500 5,600 6,750 8,000 9,500
outstanding
loans
(Billion
VND)
Growth - 24.4 20.5 18.5 18.8
rate (%)

Deposit-to- 1.38 1.31 1.26 1.21 1.23

debt ratio

Table 2.2. Lending results at SeABank Thanh Hoa City branch (2020 – 2024)
(Source: Source: SeABank Thanh Hoa City Branch Annual Reports (2020–
2024))
In lending activities, total outstanding loans surged from 4,500 billion VND
in 2020 to 9,500 billion VND in 2024. The deposit-to-debt ratio remained
healthy, stabilizing at 1.23 in 2024, indicating sufficient liquidity to meet credit
demands. However, the growth rate of loans outpaced deposits in 2022 - 2023,
prompting the branch to prioritize deposit mobilization to maintain balance.
2.1.5.3. The overall business results of SeABank Thanh Hoa City branch from
2020 to 2024
Target Year

2020 2021 2022 2023 2024

Total income 1,800 2,150 2,600 3,000 3,800

(Billion VND)
1. Interest 1,200 1,450 1,800 2,100 2,600
Income (Billion
VND)
- Loans (Billion 900 1,100 1,400 1,600 2,000
VND)
- Investments 300 350 400 500 600
(Billion VND)

2. Non-interest 600 700 800 900 1.200

income (Billion
VND)
- Fees (Billion 200 250 300 350 500
VND)
- Forex and 150 180 200 250 350

35
 Trade services
(Billion VND)
- Digital Banking 100 120 150 180 250
Fees (Billion
VND)
- Others 150 150 150 120 100
(insurance,
partnerships)
((Billion VND))
Total Cost 1,200 1,400 1,600 1,850 2,100
(Billion VND)
1. Interest 650 810 925 1,040 1,200
Expense (Billion
VND)
- Retail Deposits 400 500 600 700 800
(Billion VND)
- Corporate 250 310 325 340 400
Deposits (Billion
VND)
2. Operational 550 590 675 810 900
Costs (Billion
VND)
- Employee 300 320 350 400 450
Salaries (Billion
VND)
- Technology & 150 170 200 250 300
Infrastructure
(Billion VND)
- Marketing & 50 60 70 80 80
Promotions
(Billion VND)
- Loan Loss 50 40 55 80 70
Provisions
(Billion VND)
Table 2.3. The overall business results of SeABank Thanh Hoa City branch from
2020 to 2024 (Unit: Billion VND) (Source: SeABank Thanh Hoa City Branch
Annual Reports (2020–2024))

Target 2021/2020’s 2022/2021’s 2023/2022’s 2024/2023’s

Difference Difference Difference Difference

Amount Percentage Amount Percentage Amount Percentage Amount Percentage

(%) (%) (%) (%)
Total income 350 19.4 450 20.93 400 15.38 800 26.6
36
(Billion
VND)
1. Interest 250 20.83 350 24.13 300 16.6 500 23.8
income
(Billion
VND)
- Loans 200 22.2 300 27.2 200 14.2 400 25.0
(Billion
VND)
- Investments 50 16.6 50 14.28 100 25.0 100 20.0
(Billion
VND)
2. Non- 100 16.6 100 14,28 100 12.5 300 33.3
interest
income
(Billion
VND)
- Fees (Billion 50 25.0 50 20.0 50 16.6 150 42.8
VND)
- Forex and 30 20.0 20 11.1 50 25.0 100 40.0
Trade services
(Billion
VND)
- Digital 20 20.0 30 25.0 30 20.0 70 38.8
Banking Fees
(Billion
VND)
- Others 0 - 0 - (30) (20) (20) (16.6)
(insurance,
partnerships)
(Billion
VND)
Total Cost 200 16.6 200 14.28 250 15.625 250 13.51
(Billion
VND)
1. Interest 160 24.61 115 14.19 115 12.43 160 15.38
Expense
(Billion
VND)
- Retail 100 25.0 100 20.0 100 16.6 100 14.28
Deposits
(Billion
VND)
- Corporate 60 24.0 15 4.83 15 4.61 60 17.64
Deposits
(Billion
VND)

37
2. 40 7.27 85 14.4 135 20.0 99 11.1
Operational
Costs (Billion
VND)
- Employee 20 6.66 30 9.375 50 14.28 50 12.5
Salaries
(Billion
VND)
- Technology 20 13.3 30 17.64 50 25.0 50 20.0
&
Infrastructure
(Billion
VND)
- Marketing & 10 20.0 10 16.6 10 14.28 0 -
Promotions
(Billion
VND)
- Loan Loss (10) (20.0) 15 37.5 25 45.4 (10) (12.5)
Provisions
(Billion
VND)
Table 2.4. The differences in each category over the years in SeABank Thanh
Hoa City branch from 2020 to 2024 (Unit: Billion VND)( Source: SeABank
Thanh Hoa City Branch Annual Reports (2020–2024))

Picture 2.2. Chart of business results of SeABank Thanh Hoa

City branch from 2020 to 2024
4000
3500
3000
2500
Billion VND

2000
1500
1000
500
0
2020 2021 2022 2023 2024
Year

Total Income Total Cost

Look at the tables and the chart above, the total income for SeABank Thanh
Hoa City branch is driven by interest income, primarily from loans and

38
investments and non-interest income sources from fees, forex and digital
services… The interest income grew from 1,200 billion VND in 2020 to 2,600
billion VND in 2024, fueled by the branch’s expanding loan portfolio, which rose
from 4,500 billion VND in 2020 to 9,500 billion VND in 2024 and investments
in bonds. Retail and SMEs loans accounted for 76.9% of interest income in 2024
(2,000/2,600 billion VND), which reflects the branch’s focus on individual and
small-business clients.
About non-interest income, from 2020 to 2024, it surged from 600 billion
VND to 1,200 billion VND respectively, driven by digital banking fees,
remittance services via Western Union partnerships and forex earnings from USD
deposits which has 1,000 billion VND in 2024.
On the other hand, the total cost is dominated by interest expenses and
operational costs. The interest expenses rose from 650 billion VND in 2020 to
1,200 billion VND in 2024, reflecting competitive deposit rates to attract retail
customers (59.82% of deposits in 2024). Retail depositors alone cost 800 billion
VND in 2024, while corporate deposits (lower-cost funding) accounted for 400
billion VND.
2.2. Current status of enhancing capital mobilization at SeABank Thanh
Hoa City branch
2.2.1. Overview of capital mobilization procedures at SeABank Thanh Hoa
City branch
2.2.1.1. Opening a payment account at the counter (or online)
To open a payment account at SeABank, customers need to prepare their
documents ready including:
+) Application form cum contract for opening and using payment account,
provided by SeABank and customers fill in all information according to
instructions.
+) Other documents required by the bank such as documents proving that the
property owner is established according to the provisions of law, documents
proving the status of the legal representative of the organization…..
Customers also need to meet these requirements:
+) Must be a business customer that is established and operates legally

39
 +) Must have a minimum balance of on the current account of 1,000,000
VND and have no maintenance of minimum balance for other foreign currencies.
After meeting all conditions and preparing all documents, customers can
immediately contact SeABank to open a deposit payment account. The process
includes the following steps:
Step 1: Customers present identification, the teller must scan QR Code to
check for more information to see if theirs are in the system or not
Step 2: Fill in all information in the registration form and contract to open
and use a payment account.
Step 3: Provide documents to open an account as requested by the bank,
including documents proving that the account holder was established in
accordance with the law, documents proving the status of the legal representative
of the organization. Customers also need to tell the teller their phone numbers. If
they are individual customer, the system will generate a random account number,
while corporate customers are prioritized to choose their own account number of
their own accord.
Step 4: Sign the account opening contract provided by the bank once
customers filled in all the information needed.
Step 5: Activate the account according to the instructions of the bank staff.
2.2.1.2. Opening a payment account online
For customers who want to open a payment account online, download
SeAMobile app on the phone, type in their phone number, their identification
number, take pictures of their identification card and confirm faces. The only
drawback of opening account online is that if customers want to transfer money,
they can only transfer 10 million VND maximum. To transfer more than 10
million VND, customers need to go the nearest SeABank Transaction Office to
do it.
2.2.1.3. Opening a saving account at the counter
To open a saving account, customers must follow the following steps:
Step 1: Customers go to the transaction counter and fill out the savings
deposit request form. The teller will ask the customer to clearly state information
such as amount of money, term, currency and deposit method

40
 Step 2: Customers are required to present legal identification (ID card,
passport…). Conduct checks on customer’s information on the system and other
information on the deposit request form. If there are errors, the bank will support
the customer to amend and proceed to collect money
Step 3: Follow the cash collection process, noting the actual amount
collected must match the customer manifest. If that exceeds the transaction limit
or the cash balance limit of the tell, it will be transferred to the main treasurer for
processing and stamp collected payment on the customer’s payment statement.
Step 4: The teller declares and prints the savings book based on the
customer’s information to declare reported in the system. Check the correct
savings book form and carefully check the updated information before printing
the book for customers. Transfer all documents to the Deputy fund accounting
department to be approved.
Step 5: The Deputy Control Fund accounting department will check the
information on the payment request form, the customer’s identification
documents and information that the teller updates on the system
Step 6: The Deputy Treasury accounting department signs and stamps on the
savings book and accompanying documents. Return the savings book and
accompanying documents to the teller
Step 7: The teller re-checks the elements on the completed savings book,
passes on to the customer to double check the information and gives it and
identification documents to the customer
Step 8: Put money in the box and update the cash book according to the
correct collection process
Step 9: Save the card in the storage card clips. Clips of savings card
documents should be arranged by the date the passbook number to make it easy
to find when needed.
In general, the process of opening a saving account at the counter is quite
strict, following the steps in a consistent order to create trust for customers and
being able to easily retrieve relevant documents should problems arise
2.2.1.4. Opening a saving account online
Step 1: Log in to SeAMobile. Note, for absolute information security,
customers should minimize logging in to public devices and say "no" to
41
computers showing signs of virus infection. This helps prevent any possibility of
hackers stealing your information and breaking into your account.
Step 2: Select the "Savings" section on the application. This is where
customers will perform all savings operations as well as track other information.
Step 3: Select "Suggest savings products". SeABank has designed many
savings packages for customers such as: Term savings in the form of interest
payments at the end of the term, monthly interest payments, non-term savings,
online savings...
Step 4: In the first row of boxes, you will be asked to select the amount you
want to send. In the second row of cells, select the savings deposit limit you
desire. Customers can proactively choose to deposit savings within 7 days up to
36 months. Note that the longer the deposit time, the greater the interest profit
received.
Step 5: Choose the savings package you want.
Step 6: Enter the necessary information required by the system such as
amount, term, maturity method.....
Step 7: Check all information and continue to open a saving account.
2.2.1.5. Products
In SeABank Thanh Hoa City branch, the capital is mobilized through these
forms
2.2.1.5.1. By term
Including term and non-term deposits, this necessitates a comprehensive
analysis of how an organization secures funding for varying durations, ensuring
alignment with its operational and strategic objectives. This evaluation involves
scrutinizing the congruence between the term of mobilized capital and its
intended use, thereby preventing liquidity mismatches and unnecessary financial
burdens. And by seeing the amount of capital gained in each kind of deposit over
the total deposit in each year, we can evaluate the general status of mobilization
by term in SeABank Thanh Hoa City branch.
2.2.1.5.2. By currency
Due to the accumulation process and the increasing domestic consumption
demand, customers often deposit money in domestic currency, which is VND.

42
This is also the main source of capital used in commercial banks and it plays an
extremely important role in maintaining the operation of the bank. That is why
this source of capital accounts for a large proportion of the total capital and the
mobilization interest rate is high.
There are also foreign currencies like USD, EUR…. that contributes greatly
to the development of the branch in specific and the whole SeABank in general.
The need to pay for import and export goods with development investment
requirements has increased the need for customers to store foreign currency for
the convenience of goods exchange activities. From there, it has created a source
of capital mobilized at banks. Interest rates on foreign currency deposits are often
lower than those mobilized in domestic currency for the same term. Be that as it
may, banks still promote the mobilization of foreign currency capital to serve
international payment activities, export financing, domestic foreign currency
trading...
2.2.1.5.3. By customer segments
Capital from retail customers is a potential and relatively stable source of
mobilized capital for the bank. All people have temporary idle income. In the
current economic conditions, most activities are being done through banks, they
can deposit savings with the goal of ensuring safety and earning profits from
savings. In order to attract more sources of savings deposits and at the same time,
to change the habit of keeping cash at home, banks have been flexible in offering
interest rates to each deposit term and provide giveaway programs to attract more
customers.
Capital mobilized from economic organizations is also available in banks
since many newly built corporations want to save time and enjoy payment
benefits or do transactions to expand their own business. Commercial banks are
financial intermediaries, they have a close relationship with this group of subjects
through opening accounts, receiving deposits and fulfilling their payment orders.
It is also thanks to the interweaving of receivables and payables that banks
always have a certain deposit balance. This is a source of capital that is
considered large and accounts for a relatively high proportion of total capital.
However, the size of this amount depends largely on the services and utilities that
the bank brings to customers when using the services. Developing and managing

43
channel allows banks to have a significant source of mobilization at a relatively
low mobilization cost.
2.2.2. Current status of enhancing capital mobilization at SeABank Thanh
Hoa City Branch
2.2.2.1. Analyze the growth rate of mobilized capital
Target Year
2020 2021 2022 2023 2024

Total capital 6,250 7,375 8,550 9,750 11,700

mobilized
(Billion
VND)
Mobilized 0 18 15.93 14.03 20
capital’s
growth rate
(%)
Table 2.5. Data that shows the capital mobilization through the growth rate of
mobilized capital at SeABank Thanh Hoa City Branch from the last 5 years
(Unit: Billion VND)(Source: SeABank Thanh Hoa City Branch Annual Reports
(2020–2024))
As of December 31st 2024, the total capital mobilized from economic
organizations and individual customers reached 11,700 billion VND, an increase
of 1,950 billion VND compared to 2023. By 2020, the COVID-19 pandemic has
affected the production and business activities of enterprises as well as greatly
affected the economic life of individuals, and the interest rates of many banks
also continuously decreased. However, the capital mobilization situation at the
branch remained relatively stable with a total amount of up to 6,250 billion VND.
In 2021, the epidemic situation became more complicated which greatly affected
economic life of individual customers and organizations, stagnating the
development of the economy. In recent years, bank interest rates have dropped
sharply, greatly affecting the capital mobilization situation at banks. Total
deposits in 2021 reached 7,375 billion VND, an increase of 1,125 billion VND.
This was a slow increase compared to that back in 2020. Despite the difficult
economic situation, the branch has continuously proactively and flexibly grasped
market developments as well as customer needs to deploy new products and
services, appropriate and highly competitive policies, to maintain good

44
 relationships with traditional customers and attract more and more new
customers.
We can see that in 2021, the branch’s growth rate increased by 18%, this is a
quite high number, showing that the branch focuses on promoting its market
expansion strategy to attract more new customers, enhancing its competitive
position with other banks in the region. However, in 2022 and 2023, it decreased
to 15.93% and 14.03% respectively, partly due to many reasons such as COVID-
19 at the time, increased competition from other banks, lower interest rates,
makung deposits less attractive…. Entering 2024, this target is increased by
5.97% compared to 2023. This sharp rebound implies that: SeABank has
introduced more attractive deposit schemes and the branch has expanded its
outreach, attracting more corporate or individual customers.
2.2.2.2. Analyze the capital mobilization by term
Target 2020 2021 2022 2023 2024

Amoun Percentag Amoun Percentag Amoun Percentag Amoun Percentag Amoun Percentag
t e (%) t e (%) t e (%) t e (%) t e (%)

< 12 3,200 51.2 3,850 52.2 4,500 52.6 5,000 51.28 5,800 49.57
months
(Billio
n
VND)

12 – 60 1,750 28 2,050 27.7 2,325 27.1 2,600 26.6 2,800 23.9

months
(Billio
n
VND)

> 60 800 12.8 925 12.5 1,125 13.1 1,500 15.38 2,400 20.51
months
(Billio
n
VND)

Non- 500 8 550 7.4 600 7.01 650 6.66 700 5.98
term
(Billio
n

45
VND)

Total 6,250 100 7,375 100 8,550 100 9,750 100 11,700 100

Table 2.6. Data that shows the capital mobilization by term at SeABank Thanh
Hoa City Branch from the last 5 years (Unit: Billion VND)( Source: SeABank
Thanh Hoa City Branch Annual Reports (2020–2024))

Target 2022/2021’s 2023/2022’s 2024/2023’s

Difference Difference Difference

Amount Percentage Amount Percentage Amount Percentage

(%) (%) (%)

< 12 months (Billion 650 16.8 500 11.1 800 16

VND)
12 – 60 months 275 13.4 275 11.8 200 7.69
(Billion VND)
> 60 months (Billion 250 25.6 425 34.6 950 57.5
VND)
Non-term (Billion 50 9.09 50 8.33 50 7.69
VND)
Total 1,175 15.93 1,200 14.03 1,950 20
Table 2.7. The difference of capital mobilization in term in each year from 2020
to 2024 (Unit: Billion VND)( Source: SeABank Thanh Hoa City Branch Annual
Reports (2020–2024))

46
 Picture 2.3. Situation of capital mobilization by term
7000
from 2020 to 2024

6000

5000

4000
Billion VND

3000

2000

1000

0
2020 2021 2022 2023 2024

Year

< 12 months 12 - 60 months > 60 months Non-term

Look at the table and the line chart, we can see the capital mobilized more
than 60 months took account for a small proportion of total mobilized capital but
tend to increase from 800 billion VND in 2020 to 2,400 billion VND in 2024.
Non-term capital mainly come from individual customers performing payment
services, deposit interest rates are low, so they do not attract many customers.
Despite that, the non-term capital mobilization still grows over each year from
500 billion VND in 2020 to 700 billion VND in 2024.
The capital mobilized under 12 months from the branch accounts for the
highest proportion of total capital. Specifically, in 2020, it reached 3,200 billion
VND, accounting for 51.2% of the total mobilized capital. In 2021, this capital
increased by 3,850 billion VND compared to the previous year. By 2022,
deposits under 12 months increased by 16.8% compared to 2021. Despite the
severe impact of the pandemic, capital mobilized under 12 months witnessed an
increase in 2022 with 4,500 billion VND, equivalent to 52.6% and decreases in
the next 2 years with 51.28% in 2023 and 49.57% in 2024
The deposits from 12 months to 60 months account for a relatively high
proportion, this is a stable source of capital to meet medium and long-term loan
needs at the branch. However, the growth rate is decreasing sharply from 13.4%

47
 to 7.69%, as customers either opted for short-term liquidity or locked in long-
term deposits for higher returns. This is also the reason why customers abandon
this safe investment channel to switch to other investment channels other. This is
a concern for loan activities at the branch, they need to pay attention to have
policies to orient the development and expansion of capital sources in accordance
with the market to meet customer needs to increase profits in capital
mobilization.
2.2.2.3. Analyze the capital mobilization situation by currency
Target 2020 2021 2022 2023 2024
Amoun Percentag Amoun Percentag Amoun Percentag Amoun Percentag Amoun Percentag
t e (%) t e (%) t e (%) t e (%) t e (%)

VND 5,850 93.6 6,850 92.8 7,800 91.2 8,700 89.2 10,350 88.4
(Billio
n
VND)
USD 275 4.4 350 4.74 500 5.8 750 7.6 1,000 8.54
(Billio
n
VND)
Others 125 2.0 175 2.46 250 3.0 300 3.2 350 3.06
(Billio
n
VND)
Total 6,250 100 7,375 100 8,550 100 9,750 100 11,700 100
Table 2.8. Data that shows the capital mobilization by currency at SeABank
Thanh Hoa City Branch from the last 5 years (Unit: Billion VND)( Source:
SeABank Thanh Hoa City Branch Annual Reports (2020–2024))
Target 2022/2021’s 2023/2022’s 2024/2023’s
Difference Difference Difference

Amoun Percentag Amoun Percentag Amoun Percentag

t e (%) t e (%) t e (%)

VND 950 13.86 900 11.5 1,650 18.96

(Billio
n
VND)
USD 150 42.8 250 50 250 33.3
(Billio

48
 n
VND)
Others 75 42.8 50 20 50 16.6
(Billio
n
VND)
Total 1,175 15.93 1,200 14.03 1,950 20
Table 2.9. The difference of capital mobilization in currency in each year from
2020 to 2024 (Unit: Billion VND)( Source: SeABank Thanh Hoa City Branch
Annual Reports (2020–2024))

Picture 2.4. Situation of capital mobilization by

currency from 2020 to 2024

12000 10350
10000 8700
7800
6850
Billion VND

8000
5850
6000

4000

2000 750 1000

275125 350 175 500 250 300 300
0
2020 2021 2022 2023 2024
Year

VND USD Others

Based on the data above, we see that the branch's deposit source is mainly
VND while the mobilized capital in USD and others account for a lower
proportion. The mobilized VND in 2020 accounted for 93.6% (5,850 billion
VND) of the total mobilized capital. In 2021, VND deposits reached 6,850
billion VND compared to last year. However, because the pandemic, in the
following years, VND deposits’ growth rate tend to decrease from 13.86% to
11.5% before it rose sharply by 18.96%. Another reason for the fluctuation in
VND deposits is that SeABank Thanh Hoa City Branch has experienced
significant growth in foreign currency deposits, particularly in USD and other
international currencies. The increasing deposit volume is attributed to:
+) The increased remittances from overseas Vietnamese, contributing to USD
deposit growth

49
 +) The rise of foreign direct investments (FDI) in Thanh Hoa province,
leading to higher demand for multi-currency accounts
+) Customers shifting savings into foreign currency accounts to hedge against
VND fluctuations.
+) Although there are many customers who accept foreign currency deposits
into the bank without asking for interest, or even though the interest rate on the
book is 0%, the branch still has other mobilization policies such as giving gifts,
customer appreciation week... that is why USD or others mobilization is also
increasing
Therefore, while VND remains the dominant currency in SeABank Thanh
Hoa City Branch’s deposit portfolio, the rising trend in foreign currencies
suggests a need for the bank to develop more competitive forex deposit products
such as: Higher interest rates for USD and EUR savings accounts, Flexible
foreign exchange deposit-linked investment products, Enhanced digital banking
services for multi-currency transactions…….

50
 2.2.2.4. Analyze the capital mobilization by customer segments
Target 2020 2021 2022 2023 2024

Amount Percentage Amount Percentage Amount Percentage Amount Percentage Amount Percentage
(%) (%) (%) (%) (%)

Retail 3,800 60.8 4,500 61.01 5,250 61.4 6,000 61.5 7,000 59.82
customers
(Billion
VND)

SMEs 1,400 22.4 1,650 22.3 1,900 22.2 2,200 22.56 2,600 22.2
(Billion
VND)

Corporate 1,050 16.8 1,225 16.69 1,400 16.4 1,550 15.94 2,100 17.98
Clients
(Billion
VND)

Total 6,250 100 7,375 100 8,550 100 9,750 100 11,700 100

Table 2.10. Data that shows the capital mobilization by customer segments at
SeABank Thanh Hoa City Branch from the last 5 years (Unit: Billion VND)(
Source: SeABank Thanh Hoa City Branch Annual Reports (2020–2024))

Target 2022/2021’s 2023/2022’s 2024/2023’s

Difference Difference Difference

Amount Percentag Amount Percentag Amoun Percentage

e (%) e (%) t (%)

Retail 750 16.6 750 14.28 1,000 16.6

customer
s (Billion
VND)
SMEs 250 15.1 300 15.78 400 18.1
(Billion
VND)
Corporate 175 14.28 150 10.71 550 35.4
Clients
(Billion
VND)
Total 1,175 15.93 1,200 14.03 1,950 20

51
 Table 2.11. The difference of capital mobilization in customer segments in each
year from 2020 to 2024 (Unit: Billion VND)( Source: SeABank Thanh Hoa City
Branch Annual Reports (2020–2024))

Picture 2.5. Situation of capital mobilization by

customer segments from 2020 to 2024
Retail customers SMEs Corporate customers
8000
7000
6000
5000
Billion VND

4000
3000
2000
1000
0
2020 2021 2022 2023 2024
Year

Through the data table above, we can see the capital mobilized by retail
customers prevail over organizational customers and SMEs. In 2020, total
deposits from retail customers reached 3,800 billion VND, accounting for 60.8%
of total deposit capital. By 2021, total individual customer deposits increased by
18.4%, equivalent to 700 billion VND. In the following years, partly due to the
impact of the COVD-19 pandemic, the branch's mobilization situation was also
affected, the retail customers’ growth rate decreased to 16.6% in 2022 and
14.28% in 2023, however the proportion of that category still increased from
5,250 billion VND in 2022 to 6,000 billion VND in 2023. In 2024, due to the
new customer acquisition programs, digital banking expansion, and attractive
savings incentives that SeABank apply, the retail customer deposits increased to
7,000 billion VND.
The branch's capital mobilization from SMEs and corporate clients are also on
the rise. Although they account for a relatively low proportion of the total
mobilized capital, the growth rate is increasing every year. SMEs deposits have
shown consistent growth, benefiting from SeABank’s specialized financial
products tailored for small business owners. These include flexible credit lines,
business banking packages, and advisory services. In 2020, mobilization from
SMEs was 1,400 billion VND which took account of 22.4% of the total deposit
52
that year. In the next 4 years, the number of deposits earned from SMEs
increased. This is partly due to SeABank’s focus on supporting SMEs with lower
transaction fees and customized loan products that has contributed to the steady
rise in deposits from this segment.
Corporate deposits experienced the highest growth rate in 2024 with 20%,
reflecting the bank’s strengthened relationships with large enterprises. Before
that, its growth rate decreased from 15.93% in 2022 to 14.03% in 2023.
Furthermore, the proportion of corporate clients deposits increased in the last 5
years. This increase is attributed to the enhanced treasury management solutions,
high-yield fixed-term deposit products, and competitive foreign exchange
services. SeABank has also partnered with major corporations to offer exclusive
financial services, improving cash flow management and liquidity solutions.
However, the difference in the proportion of capital mobilized from retail
customers and SMEs, corporate clients is too much. If such an unbalanced capital
mobilization structure is maintained, it would be bad for the branch's operations.
Therefore, in the following years, the branch should pay more attention to
mobilizing capital from economic organizations, restructuring the components
more appropriately to achieve the best business results for the branch.
2.2.2.5. Analyze deposit-to-debt ratio
Target Year

2020 2021 2022 2023 2024

Total deposit 6,250 7,375 8,550 9,750 11,700

capital
(Billion
VND)
Total 4,500 5,600 6,750 8,000 9,500
outstanding
debt (Billion
VND)
Deposit-to- 1.38 1.31 1.26 1.21 1.23
debt ratio
Table 2.12. Data that shows the capital mobilization through deposit-to-debt
ratio at SeABank Thanh Hoa City Branch from the last 5 years (Unit: Billion
VND)( Source: SeABank Thanh Hoa City Branch Annual Reports (2020–2024))
Target Growth Rate (%)

53
 2022/2021 2023/2022 2024/2023

Total deposit capital 15.93 14.03 20

Total outstanding 20.53 18.51 18.75
debt
Table 2.13. The growth rate of the total deposit and total outstanding debt in
each year from 2020 to 2024 (Unit: Billion VND)( Source: SeABank Thanh Hoa
City Branch Annual Reports (2020–2024))
The ratio of deposits to total outstanding debt indicates whether the mobilized
capital is enough to meet the bank's loan needs. Through the data analysis table
above, we see that the coefficient of deposits on total outstanding debt over the
years is always greater than 1, this proves that the capital mobilized at the branch
can meet the loan needs at the bank. Besides, total deposits and total outstanding
loans at the branch have increased steadily over the years, proving that business
activities at the branch are going quite smoothly, however, from 2022 to 2023,
the ratio of total deposits to total outstanding loans tends to decrease from
15.93% to 14.03% in total deposit and 20.53% to 18.51% in total outstanding
debt, mainly because the growth rate of total outstanding loans is higher than the
growth rate of total mobilized capital. This suggests that while deposits are
increasing, loan disbursement is growing at a higher rate. The branch need
necessitating continued deposit growth to maintain a balanced capital structure.
And thanks to it, in 2024, the deposit-to-debt ratio increased from 1.21 in 2023 to
1.23 in 2024, which indicates SeABank’s strategic focus on strengthening capital
mobilization while maintaining loan expansion.
2.2.2.6. Analyze average mobilization cost ratio

Target Year

2020 2021 2022 2023 2024

Total cost 1,200 1,400 1,600 1,850 2,100

(Billion VND)

Mobilization 650 810 925 1,040 1,200

cost (Billion
VND)

Average 54.16 57.85 57.81 56.21 57.14

mobilization
54
cost ratio (%)
 Table 2.14. Data that shows the capital mobilization through average
mobilization cost ratio at SeABank Thanh Hoa City Branch from the last 5 years
(Unit: Billion VND)( Source: SeABank Thanh Hoa City Branch Annual Reports
(2020–2024))
Target Growth Rate (%)

2022/2021 2023/2022 2024/2023

Total cost 14.28 15.625 13.51

Mobilization cost 14.19 12.43 15.38
Table 2.15. The growth rate of the total cost and the mobilization cost in each
year from 2020 to 2024 (Unit: Billion VND)( Source: SeABank Thanh Hoa City
Branch Annual Reports (2020–2024))
The average mobilization cost ratio shows the cost the bank spends to
mobilize capital compared to the bank's total operating costs. Through the data
analysis above, we see that the cost that banks spend to mobilize capital
fluctuates at around 57%. Specifically in 2020, the average mobilization cost
ratio reached 54.16%. By 2021, it increased 3.69%, it reflects a significant
portion of expenses, meaning deposit mobilization is a major cost factor. Since
then, the ratio has been decreased with 57.81% in 2022 and 56.21% in 2023 due
to the fact that the branch has expanded its operating network throughout the
region to reach out to many new customers. In 2024, it rose back to 57.14%
which suggests mobilization costs remained a large part of total expenses. If the
mobilization cost ratio remains high, SeABank might face profitability
challenges, that’s why strategies like attracting lower-cost funding sources or
diversifying capital mobilization will help reduce the mobilization cost in
specific and total cost in general.
2.2.3. Benchmarking Against Industry and Regional Peers
To evaluate SeABank Thanh Hoa City Branch’s deposit mobilization
performance, a comparative analysis was conducted against industry
averages (State Bank of Vietnam data) and local competitors (Agribank, BIDV,

55
and MB Bank…… in Thanh Hoa). The findings reveal competitive gaps and
strategic opportunities.
2.2.3.1. Deposit Growth Rate Comparison
Year SeABank Industry Agribank BIDV Thanh MB Bank
Thanh Hoa averages Thanh Hoa Hoa Thanh Hoa
2020 - 12.1 13.5 11.8 14.2
2021 18 13.7 19.2 15.4 17.8
2022 15.9 14.3 16.5 14.9 16.1
2023 14 13.5 18 15.2 17.3
2024 20 15 22 16.5 18
Table 2.16. Annual Deposit Growth Rates Comparison (%) (2020 – 2024)
(Source: SBV’s Regional Banking Sector Review (2020 - 2024),
Competitor annual reports (2020–2024), Internal SeABank branch
performance reports)
SeABank Thanh Hoa City branch achieved a robust 20% deposit growth in
2024, surpassing the national commercial banking sector average of 15%
reported by the State Bank of Vietnam. However, this performance trails behind
Agribank Thanh Hoa's 22% growth, attributable to its extensive rural branch
network and strong brand recognition among agricultural businesses. Notably,
MB Bank's Thanh Hoa branch recorded 18% growth through targeted digital
acquisition strategies, suggesting SeABank's urban-focused approach may be
limiting its expansion potential in emerging market segments. The branch's
growth pattern indicates particular strength in retail deposits but reveals
underperformance in corporate and SME segments compared to competitors.
2.2.3.2. Term Structure Composition
Term SeABank Thanh Industry BIDV Thanh Vietcombank
Hoa averages Hoa Thanh Hoa
< 12 months 49.6 45 40 35
12 – 60 months 23.9 30 35 40
> 60 months 20.5 18 18 25
Non-term 6 7 7 0
Table 2.17. Deposit Term Distribution Comparison (% of Total) (Source:
SBV’s Regional Banking Sector Review (2020 - 2024), Competitor annual
reports (2020–2024), Internal SeABank branch performance reports)

56
 The analysis of deposit maturities reveals significant structural differences.
SeABank Thanh Hoa City branch's portfolio consists of 49.6% short-term
deposits (< 12 months), markedly higher than BIDV's 40% and the industry
benchmark of 45%. This heavy reliance on short-term funding creates asset-
liability maturity mismatches, as 65% of the branch's loans have terms exceeding
12 months. In contrast, Vietcombank maintains a more balanced profile with
35% short-term, 40% medium-term (12 - 60 months), and 25% long-term
deposits, providing greater stability for its lending operations. SeABank's term
structure suggests potential liquidity vulnerabilities during periods of market
stress.
2.2.3.3. Currency Diversification
Currency SeABank Thanh Industry MB Bank Thanh Techcombank
Hoa averages Hoa Thanh Hoa
VND 88.4 90.5 85 82
USD 8.5 6.2 12 10
Others 3.1 3.3 3 8
Table 2.18. Currency Mix Comparison (% of Total Deposits) (Source:
SBV’s Regional Banking Sector Review (2020 - 2024), Competitor annual
reports (2020–2024), Internal SeABank branch performance reports)
According to the table, the branch's USD deposits represent 8.5% of total
deposits, outperforming the industry average of 6.2% but lagging behind MB
Bank's 12% USD deposit share. This gap stems from MB Bank's specialized
foreign currency services for Thanh Hoa's growing export manufacturing sector.
SeABank's EUR and other foreign currency deposits (3.06%) show room for
improvement compared to Techcombank's 5% share, particularly in serving
European joint ventures in the province. The analysis suggests untapped potential
in catering to international trade businesses through tailored multi-currency
deposit products.
2.3. Evaluation of the current situation of enhancing capital mobilization at
SeABank Thanh Hoa City branch
2.3.1. Achievements
It can be said that the process of enhancing capital mobilization in recent years
of SeABank Thanh Hoa City branch has achieved encouraging successes,

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contributing to the general system, which affirms its position as one of the
leading commercial banks in Vietnam.
The branch has achieved significant milestones in capital mobilization,
solidifying its position as a key player in the region’s banking sector. Retail
customers remain the cornerstone of the branch’s deposit base, consistently
contributing nearly 60% of total mobilized capital (reaching 7,000 billion VND
in 2024). This success is attributed to tailored financial products, competitive
interest rates, and the expansion of digital banking services through the
SeAMobile app, which simplified account opening and transactions
The term mobilized capital (“<12 months”, “12 - 60 months” and “>60
months”) accounts for more than 90% of the total capital. This reflects effective
strategies to align deposit terms with customer preferences and loan demands,
contributing to stabilizing the branch’s capital resources. Furthermore, the branch
successfully expanded foreign currency mobilization, particularly USD deposits,
which surged from 4.4% in 2020 to 8.54% in 2024, driven by remittances and
FDI inflows. Modernization efforts, including blockchain integration and AI-
driven credit assessments, enhanced operational efficiency and customer trust.
The deposit-to-debt ratio remained healthy (1.23 in 2024), ensuring liquidity to
meet credit demands. Lastly, the branch’s CSR initiatives, such as tree-planting
programs, bolstered its reputation, aligning with broader environmental goals and
fostering community engagement.
2.3.2. Limitations and causes
2.3.2.1. Limitations
Besides the results achieved, the capital mobilization activities at the branch
still have some limitations that need to be overcome.
In data table 2.6, we see that the capital mobilized under 12 months tends to
increase sharply over the year, however its percentage in the total capital
decreased starting at 2021. This imbalance is one of many concern for the branch
as this is the branch’s main product line. If this mobilization situation continues
like this, it will lead to short-term VND not being enough to meet medium and
long-term lending needs. Though the branch can call in loans, this will pose a lot
of risks if customers need to withdraw money before maturity.

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 Also, the proportion of non-term capital sources at the branch is on the verge
of decreasing year by year, this is a source of VND that many banks are
interested in because of its low mobilization costs, easy to combine many cross-
selling products and attract customers’ idle capital. The branch should pay
attention and offer more promising policies and incentives to attract more
customers in the area and to boost sales, as well as to increase the proportion of
demand capital at the branch.
On table 2.10, it presents the difference between the mobilization of retail
customer and SMEs and corporate clients. The latter is a group of customers with
a very large amount of capital in business and the mobilization costs for those
customers will be relatively lower than individual customers. However, the
amount of deposits from SMEs and corporate clients is still quite small, the
number of new increases is slow, so the total capital mobilized from both
categories is relatively modest, only fluctuating at nearly 40% of the total
mobilized capital.
2.3.2.2. Causes
We can withdraw some key causes based on the data we have explained
earlier. Firstly, due to the reluctance to deploy and implement new products,
especially deposit products through modern distribution channels that are not yet
groundbreaking in competitive conditions, the product portfolio for mobilizing
residential deposits is not really attractive.
Although the branch has a variety of deposit types, it has not created much
difference in products compared to neighboring banks in the region, and there are
no special product packages or programs for specific customer groups. Therefore,
products mobilized at the branch in not promising.
In some periods, interest rates is still slow compared to the market,
SeABank’s interest rates are fairly lower than other banks, making the product
unattractive. Besides, customer care work does not have separate policies for
particularly large customer groups and does not really focus on important care
work. Product policies for each customer segment have not been focused on
development.
Current forms are quite lengthy that require customers to fill out a lot of
information, causing loss of time and leading to extended transaction time for

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customers. The quality of products, services and marketing activities have not
been promoted, leading to an imbalance in total mobilized capital.
At the branch, there has not been much attention paid to measuring customer
satisfaction with the quality of products and services, which is why they have not
been able to classify customers to have appropriate care and marketing policies.
Furthermore, the branch does not care much about updating the bank’s image
and reputation, marketing activities are mainly based on the programs launched
by the headquarters. The branch has not proactively built marketing programs to
create a mark as well as build its own brand in the region. And lastly, it has not
really focused on advertising products to customers, promotional programs at
branches are mainly implemented according to the programs proposed by the
head office, which is not making a difference to impress and interest customers.
While the branch has introduced digital initiatives, however, it does not
contribute much to the total deposits of the branch. Legacy system may lack
integration with modern fintech solutions, resulting in slower transaction
processing and limited functionality. Cybersecurity vulnerabilities in outdated
systems may erode customer trust, particularly among corporate clients handling
large transactions.
Lastly, the branch has not really focused on advertising products to
customers, promotional programs at branches are mainly implemented according
to the programs proposed by the head office, which is not making a difference to
impress and interest customers.

CHAPTER 3: SOLUTIONS TO IMPROVE CAPITAL

MOBILIZATION AT SEABANK THANH HOA CITY
BRANCH
3.1. Orientation of capital mobilization of SeABank Thanh Hoa City Branch

3.1.1. Business orientation of SeABank Thanh Hoa branch from 2025 to

2030
Although the economic context is still difficult and unstable, COVID-19
pandemic and the level of competition among credit institutions is increasingly
fierce, the branch's business activities have achieved some outstanding results.

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During the last 5 years from 2020 to 2024, the branch was continuously ranked
as one of the key branches of the system. This result was achieved thanks to the
orientation and drastic direction of the Head Office, the Board of Directors, and
the efforts of individuals and collectives of staff. The branch develops orientation
and action program for the next 5 years to come, some specific targets are as
follows:
- The branch needs to prioritize serving individual customers through tailored
financial products such as savings accounts, personal loans, digital banking
services….. Retail customers account for nearly 60% of total deposits, and the
branch aims to retain this segment by enhancing service quality and convenience.
For high-net-worth individuals, they will be offered more exclusive benefits to
deepen relationships and attract larger deposits.
- Leveraging the SeAMobile app and online platforms, the branch emphasizes
seamless digital experiences for retail customers, including instant account
opening, fund transfers, and bill payments. All the while strengthening defenses
against digital threats to protect customer data and maintain trust in online
services.
- The branch aims to grow its SMEs client base by offering customized
solutions such as working capital loans, trade finance, and cash management
services. This aligns with SeABank’s broader strategy to support small and
medium enterprises, which are key drivers of Vietnam’s economy. The branch
also seeks to attract more corporate deposits by providing treasury management,
international payment services, and investment advisory
- The branch prioritizes maintaining a healthy loan-to-deposit ratio (currently
around 1.23) and adhering to State Bank of Vietnam regulations on capital
adequacy and liquidity
- The branch wants to focus on something new like: Building on SeABank’s
issuance of green and blue bonds whic includes: Financing renewable energy
projects or offering green loans for eco-friendly businesses and households…..
Incorporating environmental, social, and governance (ESG) criteria can also be
considered to attract socially conscious depositors and investors.
3.1.2. Orientation on capital mobilization of SeABank Thanh Hoa branch for
the 2025 – 2030 period

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 SeABank Thanh Hoa City branch identifies a number of main directions in
capital mobilization as follows:
- Increase deposit volume while maintaining competitive interest rates.
- Diversify funding sources to reduce reliance on retail customers.
- Optimize mobilization costs to improve profitability.
- Enhance liquidity management to meet regulatory requirements and customer
needs.
- Along with efficiency targets, the branch's orientation in the coming period is
to perfect capital management. Comply with the Head Office's instructions on
capital management, especially instructions on mobilization interest rates. Build
more capital sources to achieve optimal scale and structure at the lowest cost and
gradually restructuring customers segments in the direction of increasing
payment deposit capital and increasing the proportion of medium and long-term
mobilized capital to gradually overcome the situation of excess short-term capital
and lack of medium- and long-term capital.
- Further improve the quality of banking products and services.
- Continue to expand and improve the operational quality of the mobilization
network, strengthen marketing, apply many forms of incentives to create good
service conditions for customers.
- Capital mobilization enhancement is always associated with an important
factor, people. Therefore, training, exchange, and coaching in capital
mobilization skills need to be promoted and regularized.
- Conduct customer surveys to identify deposit product gaps. Analyze
competitor strategies to stay ahead in pricing and innovation. Track deposit
growth rate, cost of funds, and customer acquisition cost and monitor market
share in Thanh Hoa’s deposit market compared to competitors such as Agribank,
BIDV, MB Bank….
3.2. Solutions to improve capital mobilization at SeABank Thanh Hoa City
branch
Mobilizing capital has no longer been a new problem for banks in particular or
the entire economy in general, research on the enhancement of capital
mobilization has existed for a long time and has been mentioned in many

62
documents and researches. Solutions to improve capital mobilization are very
diverse from interest rate policies, marketing, products to issues of management
capacity, sales network, transaction process…… Scientific and technological
solutions have been researched a lot in the mass media and previous theses. Here
are some of them:
3.2.1. Encouraging staff to join in more targeted training
A key barrier to capital mobilization is the lack of staff expertise in promoting
advanced financial products. In the eyes of customers, the image of the bank is
reflected through the service attitude, qualifications, and professional handling of
bank employees. The proficiency in the process of performing expertise, the
dedication in work, and the quick and gentle manner of staff are factors that have
a strong impact on the psychology of customers. That is the reason why staff
training is a necessary activity to improve the efficiency of mobilization work.
To start with, the branch will launch a monthly training program focused on
blockchain technologies, AI-driven savings tools, and ESG-linked deposit
products to help the staff to keep up with the trends and work more efficently.
For example, employees will undergo workshops to explain how blockchain
ensures immutable transaction records, appealing to security-conscious SMEs.
Performance incentives will be restructured to reward staff who successfully
cross-sell long-term deposits.
3.2.2. Improving Accessibility Through Extended Services
Geographical and temporal barriers limit deposit growth in rural and informal
sectors. The branch will extend operating hours, catering to farmers and gig
workers. The branch can establish a network of 20 certified deposit agents to
handle basic transactions for a 0.1% commission, funded through the branch’s
operational budget. Additionally, ATMs will be upgraded to accept cash deposits
for term accounts, reducing branch congestion. These measures, within the
branch manager’s scheduling and budgetary authority, directly address
accessibility gaps highlighted in customer surveys.
The branch should also consider simplifying KYC requirements for low-value
deposit accounts in rural communes of Thanh Hoa. By accepting alternative
documentation, such as village chief attestations or community group
endorsements, informal workers like street vendors and smallholder farmers
could more easily access formal banking services. Additionally, the branch could
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collaborate with local governments to integrate national identification databases
with banking systems, streamlining e-KYC processes for first-time depositors.
3.2.3. Promoting SeABank Thanh Hoa City branch’s reputation
In the race between many competitors, reputation is a factor that needs to be
considered because of its affection towards the bank’s operations. To enhance its
brand, the branch needs to have good care policies to enhance the reputation and
quality of the bank:
For corporates that usually use SeABank services, they will be provided with
a policy called SeALoyalty with 3 levels: Platinum, Diamond, Gold, which
corresponding to different privileges. Specifically, Platinum and Diamond
customers will receive preferential deposit interest rates of up to 0.2%/year,
special health care packages at major hospital systems nationwide, preferential
packages of high-end brands in the fields of golf, jewelry, fashion, entertainment
and receive privileges to participate in seminars and events gathering experts and
businesses in the industry.
In addition to the direct incentives included, businesses also receive many
other valuable incentives such as: exemption and refund of annual corporate
credit card fees, free corporate digital signatures, and gifts of gratitude during
holidays......
The branch should promote advertising and marketing of products those who
are new to SeABank services, notify customers when there are new products and
services, notify customers of deposit and loan due dates, and fluctuations in
interest rates or sometimes, prioritize transactions when customers come to the
branch, support after-hours transactions when customers need, and handling all
customer complaints and questions as quickly and clearly as possible.
3.2.4. Term Structure Rebalancing
SeABank Thanh Hoa City branch’s over-reliance on short-term deposits
exposes the branch to liquidity risks and limits its ability to fund medium-term
loans. To rebalance the deposit portfolio, the branch will launch "Stability Saver
Certificates" in Q1 2025. These certificates will offer a 0.3% interest rate
premium over standard 12-month deposits, along with a 0.1% cashback incentive
for customers who opt for auto-renewal. Partial withdrawals will be permitted
after six months to enhance flexibility. To drive adoption, the marketing team

64
will run targeted SMS and email campaigns in Q2 2025, highlighting the 20%
higher earnings potential compared to short-term products. Branch staff will
receive a 5% bonus for converting at least 50 short-term depositors monthly.
Progress will be tracked through monthly reports on deposit term migration. The
goal is to increase medium-term deposits (12–60 months) from 23.9% to 30% of
the total portfolio by Q4 2025 and reduce short-term deposits to below 40% by
2026.
3.2.5. Corporate Deposit Acquisition
The branch will develop a "Trade and Savings" package tailored for export-
oriented SMEs, launching in Q3 2025. This package will include free USD
account maintenance for balances exceeding $50,000, a 1% premium on USD
deposit rates, and integrated forex hedging tools. The corporate banking team
will first identify the top 100 FDI and SME clients in Thanh Hoa using provincial
trade data and transaction analytics (Q2 2025). Dedicated relationship managers
will be assigned to the top 30 corporates to provide personalized service. Success
will be measured by a 40% year-on-year growth in corporate deposits and a
reduction in the average mobilization cost ratio to 55% by 2026.
3.2.6. Cost Optimization
SeABank’s mobilization cost ratio (57.1%) exceeds the industry average
(53%), primarily due to its heavy reliance on high-interest retail deposits. To
address this, the branch will adjust its product lineup in Q1 2025, reducing short-
term deposit rates by 0.2% and introducing "Liquidity+" non-term accounts.
These accounts will provide free transfers and payments for balances over 100
million VND, with tiered interest rates (0.1%–0.5%) tied to transaction volume.
SME clients using payroll services will receive fee waivers for maintaining
average balances of 200 million VND. The finance team will monitor interest
expenses monthly, aiming for a 15% year-on-year reduction and an increase in
non-term deposits from 6% to 10% of the total portfolio.
3.3. Recommendations
3.3.1. For the State Bank of Vietnam - Thanh Hoa City branch
The SBV’s Thanh Hoa City Branch, as the regional regulatory authority, plays
a pivotal role in fostering a conducive environment for efficient capital
mobilization.

65
 3.3.1.1. Modernizing Digital Infrastructure
The branch faces limitations due to outdated digital systems and transactional
inefficiency. To address this, the branch can recommend the SBV to upgrade its
digital platforms within its operational budget. The SeAMobile app will be
enhanced with real-time foreign exchange rate alerts, enabling customers to track
USD/VND fluctuations and make informed deposit decisions. Multi-currency
wallet integration will allow users to hold and convert funds between VND,
USD, and EUR directly within the app, reducing reliance on physical branches
for forex transactions. Additionally, partnerships with local fintech providers will
be negotiated to embed QR-code deposit features, enabling customers to top up
savings accounts instantly at partnered retail outlets. To mitigate cybersecurity
risks, biometric authentication such as facial recognition, fingerprint scanning…
will be implemented for transactions exceeding 500 million VND. These
upgrades, funded through the branch’s annual IT allocation, no head office’s
approval required and directly address technological gaps while improving
customer trust and retention.
Also, deploying AI-drive predictive analytics to design hyper-personalized
savings products is another great recommendation. Customers expect more than
standard services, they want tailored solutions that align with their unique
financial goals. Hyper personalization in banking applications allows the branch
to not only offer customized advice and products, but also to build stronger
relationships and trust. The adoption of hyper personalization in banking offers a
range of benefits that can significantly improve customer relationships and drive
business growth. It allows the branch to connect with customers on a deeper level
by delivering tailored financial advice, personalized product offers and real-time
solutions based on individual behaviors. This level of personalization builds trust
and fosters stronger emotional connections, leading to increased customer
engagement and long-term loyalty.
3.3.1.2. Creating more security measures
Adapting Blockchain Technology to the branch is one of many solutions that
can improve the technology of the branch. Blockchain is a digital ledger
technology where transactions are recorded across a dCecentralized network of
computers. Unlike traditional systems, blockchain entries are immutable, once a

66
transaction is verified and added to the chain, it can't be altered or deleted. This
creates a secure and transparent record that's resistant to tampering or fraud.
Blockchain could automate many processes, from transaction verification to
compliance, significantly reducing manual errors and administrative tasks. This
efficiency could cut costs for the branch and enable faster transaction settlements.
And by eliminating intermediaries, blockchain lowers the costs of cross-border
payments, clearing and settlement and trade finance. These savings could be
passed on to consumers through lower fees. With blockchain for secure
transactions, every data block is cryptographically secured and linked to the
previous one, creating an immutable chain. This significantly reduces the risk of
data tampering, fraud, and hacking, providing banks with a more secure
infrastructure
3.3.1.3. Creating Regulatory-Compliant Solutions to boost deposits
Innovating within regulatory boundaries to attract depositors is necessary to
keep the business going. Therefore, SBV can create a system that can suit that
statement above. For example, a system called “Loyalty Points” will be
introduced, where customers maintaining a 12-month deposit balance earn points
redeemable for free wire transfers or safety deposit box rentals, for instance. To
incentivize longer commitments, a "Step-Up" term deposit product will offer
ascending interest rates (4.5% in Year 1, 5.0% in Year 2, and 5.5% in Year 3
complying with SBV’s 5.1% cap while rewarding loyalty). For ESG-focused
clients, the branch will collaborate with local renewable energy firms to create
"Green Saver" accounts, where deposits fund solar installations, and clients
receive priority access to low-interest green loans. These initiatives align with
regulations while differentiating SeABank from other competitors that relying
solely on interest rates.
To accelerate sustainable finance, SBV-Thanh Hoa should introduce tax
exemptions or reduced reserve ratios for deposits earmarked for green projects.
SBV could also establish a regional green finance certification body to audit and
validate projects funded by green deposits, ensuring transparency and compliance
with national standards.
3.3.2. For the SeABank Headquarters
The head office needs to strengthen internal inspection and supervision to help
SeABank Thanh Hoa City branch promptly resolve difficulties and problems and
67
comply with the State Bank's regulations. Continuously updating information,
especiallly changes in domestic and international markets and interest rate
fluctuations, thereby providing appropriate mobilization policies for each period.
Build a system of legal documents and related regulations for each operational
area for branches to conveniently look up and implement.
Furthermore, by establishing a dynamic and effective competitive startegy
should the branch be able to develop new products and upgrade their general
deposits. The current competitive trend is competition in the field of service
quality. Services are products the bank provides to customers, so the bank needs
to pay more attention to this type. Through providing various types of services,
the bank can grasp the increasing needs of customers, creating favorable
conditions for capital mobilization activities in particular and business activities
in general.
The head office needs to innovate communication style and promoting
business culture in the offices. That way the branch could keep up with the
process of international economic integration. Especially the friendly, thoughtful,
open style that creates trust for depositors. Implement internal solidarity,
resolutely fight against all negative manifestations in business activities, strictly
handle cases of violating professional ethics, affecting the reputation and brand
of the bank.
SeABank can also integrate gamification, which is a strategy that blends fun
and technology to transform the banking experience, into its digital platforms.
From challenges and rewards to educational games, gamification not only
strengthens relationships with existing customers but also helps attract new
generations. This approach turns everyday financial tasks into interactive and
engaging activities, encouraging customers to actively engage with a bank’s
products and services. This strategy not only improves customer satisfaction but
also enhances financial literacy, meeting the expectations of younger generations
like Millennials and Gen Z, who value engaging and rewarding digital
experiences. By implementing gamification, the branch can not only retain
existing customers but also attract new ones, creating an emotional connection
with their brand and fostering loyalty in an increasingly competitive industry.
For example, the bank can introduce rewards programs where users earn
points, discounts, or prizes for completing specific actions, such as making

68
regular transactions, using financial products, or reaching savings goals. These
programs encourage customers to engage more with the banking platform,
increasing app usage and the adoption of additional services
Embedded savings via E-commerce Partnerships is another recommendation
for the head office to grow in business. By enabling nonfinancial companies to
incorporate financial services directly and seamlessly into their platforms and
connect with fintech and banks through application programming interfaces
(APIs), proponents of embedded finance say it’s a significant departure from both
the conventional fintech model and traditional banking practices. If so, it would
have profound implications for the future of banking and the fintech industry,
underscoring a significant shift in how financial services are delivered and
experienced. For banks in particular, embedded savings offers an opportunity to
serve more customers through innovative banking solutions and capture new
markets. For example, in our case, integrating deposit services into popular
platforms like Shopee or Tiki would allow customers to automatically save a
percentage of their online purchases into SeABank accounts. This "save-as-you-
spend" model leverages Vietnam’s booming digital economy, converting
transactional users into long-term savers while embedding the bank’s services
into daily financial habits.

CONCLUSION
The thesis has systematically explored the challenges and opportunities in
enhancing capital mobilization at SeABank Thanh Hoa City Branch, offering
actionable insights grounded in data, regulatory frameworks, and global best
practices. By analyzing the branch’s current performance, this study identified
critical limitations such as over-reliance on retail deposits, declining medium-

69
term savings, and high mobilization costs, while also acknowledging strengths
like digital innovation and sustainable finance initiatives.
With the proposed solutions, ranging from AI-driven hyper-personalization and
blockchain-enabled transparency to community-centric savings programs which
aim to address these challenges by balancing innovation with inclusivity, these
strategies are not only tailored to Thanh Hoa City’s unique socioeconomic
landscape but also align with broader national priorities, such as the State Bank
of Vietnam’s Green Credit Policy and Digital Transformation Agenda. By
diversifying funding sources, optimizing costs, and leveraging technology, the
branch can strengthen its competitive edge while fostering financial inclusion in
rural and semi-urban communities.
Ultimately, this thesis underscores the importance of adaptability and customer-
centricity in modern banking. As Vietnam’s economy evolves, SeABank Thanh
Hoa City Branch must remain agile, embracing technological advancements and
regulatory shifts to secure its position as a leader in capital mobilization. Future
research could explore the long-term impacts of blockchain adoption or the
scalability of micro-savings models in other provinces. By prioritizing
innovation, sustainability, and inclusivity, the branch can not only achieve
operational excellence but also contribute meaningfully to Vietnam’s financial
inclusion and economic resilience.
The thesis is written based on the knowledge and experience during my study
time in university and internship period at SeABank Thanh Hoa City branch.
There will certainly be shortcomings in the presentation. And as well as the
expressive writing style, I hope to receive sympathy, comments and corrections
from teachers and instructors to make the essay as complete as possible.

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