1.

Introduction (2-3 minutes)

Good morning everyone. Today, I'm honored to present my research on enhancing
capital mobilization at SeABank's Thanh Hoa City Branch. As we all know, capital
mobilization forms the lifeblood of any commercial bank, fueling lending activities
and ensuring financial stability. For SeABank Thanh Hoa, this function has become
particularly crucial as the branch navigates Vietnam's rapidly evolving banking
landscape.
Our research identified some interesting achievements at the branch over the year, but
there are several critical challenges that worth mentioning: an over-reliance on retail
depositors, stagnant growth in SMEs and corporate funding segments, and persistently
high mobilization costs. These issues not only constrain profitability but also limit the
branch's ability to compete effectively in the increasingly crowded financial market.
2. Theoretical Framework (3 minutes)
Before diving into solutions, let's establish our theoretical foundation. Capital
mobilization encompasses all activities through which banks accumulate funds - from
traditional deposits to bond issuances and loans.
It involves optimizing the structure, cost, and stability of funds by evaluating key
indicators such as deposit growth rates, term diversification, currency composition,
and customer segmentation. For instance, a high growth rate in deposits reflects
successful market penetration and customer retention, while a balanced term structure
mitigates liquidity risks. The deposit-to-debt ratio measures the adequacy of mobilized
capital to meet credit demands, and the average mobilization cost ratio assesses the
efficiency of fund acquisition. These metrics collectively ensure that banks maintain
profitability while adhering to regulatory standards.
Several factors influence the effectiveness of capital mobilization. By addressing these
factors, banks can design targeted strategies to improve capital mobilization, such as
diversifying funding sources, leveraging technology, and tailoring products to
customer needs.
In summary, the theoretical framework of capital mobilization emphasizes its pivotal
role in banking operations, the diversity of mobilization instruments, and the factors
shaping its efficiency.
3. Current Status Analysis (5 minutes)
Growth rate: Between 2020 and 2024, total deposits grew by 87%, from 6,250 billion
VND to 11,700 billion VND, but this growth was uneven across periods:
 2021 (18% growth): The branch rebounded strongly post-pandemic,
leveraging promotional campaigns and competitive short-term deposit rates to
attract retail customers. However, this growth came at a high cost, with interest
expenses rising by 24.6% year-on-year.
  2022–2023 (15.93% and 14.03% growth): Growth slowed due to declining
medium-term deposits (-7.69% in 2024) and increased competition from
digital banks. The branch’s reliance on retail customers (61.4% of deposits in
2022) exacerbated cost pressures.
 2024 (20% growth): A sharp recovery, driven by long-term deposits, which is
a sign that recent high-yield term products gained attraction.
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, mainly because the growth rate of total
deposit capital is higher than the growth rate of total outstanding debt. 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.
Through the data analysis above, we see that the cost that banks spend to mobilize
capital fluctuates at around 57%. 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.
The deposit term structure shows heavy reliance on short-term instruments with it
being the highest in 2024. The medium-term deposits 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, its growth rate is not increasing, as customers either opted for
short-term liquidity or locked in long-term deposits for higher returns. The long-term
and non-term capital mobilization took account for a small proportion of the total
mobilized capital but they tend to increase
We see that the branch's deposit source is mainly VND while the mobilized capital in
USD and others account for a lower proportion. While USD deposits grew to 8.54%
of the total, reflecting increasing remittance flows and FDI activity, the branch hasn't
fully capitalized on this trend through targeted forex products.
Onto the customer segmentation analysis, the capital mobilized by retail customers
prevail other segments with a rising trend which, however, results in unnecessarily
high interest expenses. On another note, despite accounting for just 40% of deposits,
corporate and SME clients actually represent a more stable, cost-effective funding
source.
4. Achievements, limitations and causes
The branch has achieved significant milestones in capital mobilization, solidifying
its position in the region’s banking sector. Retail customers remain the cornerstone of
the branch’s deposit base. This is attributed to tailored financial products, competitive
interest rates, and the expansion of digital banking services, which simplified account
opening and transactions
The term mobilized capital 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, 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, 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.
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 capital 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.
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.
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.
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
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
5. Proposed Solutions (6-7 minutes)
To address these challenges, we developed a comprehensive three-part strategy:
First, we must revolutionize our staff capabilities through targeted training programs.
Monthly workshops should focus on blockchain applications, AI-driven customer
analytics, and ESG-linked financial products. Importantly, we propose restructuring
incentives to reward employees who successfully migrate retail depositors to longer-
term instruments or attract new corporate clients.
Second, digital transformation must become a priority. Our SeAMobile platform
requires significant upgrades, including:
 Multi-currency wallet integration
 QR-code enabled deposit functions
 Biometric authentication for high-value transactions
We should also extend operating hours and establish a network of certified
deposit agents in rural districts to improve accessibility.
In the race between many competitors, reputation is a factor that needs to be
considered because of its affection towards the bank’s operations. One of the many
ways the branch should promote is to advertise and market products for those who are
new to SeABank services, it will help customers to notify when there are new
products and services 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.
6. Strategic Recommendations (3 minutes)
Implementation requires coordinated effort across multiple levels:
At the regulatory level, we recommend SBV-Thanh Hoa streamline KYC processes
for rural clients, potentially accepting alternative documentation like village chief
attestations. We also advocate for blockchain adoption to enhance transaction
transparency and security.
For SeABank headquarters
+) Strengthen internal inspection and supervision, also comply with State Bank’s
regulations
+) Gamification of our digital platforms to boost customer engagement
7. Conclusion (2 minutes)
The path forward requires commitment and collaboration, but the potential rewards -
enhanced profitability, greater stability, and industry leadership - make this effort
unquestionably worthwhile. Thank you for your attention, and I welcome any
questions you may have.