Issues in Credit Granting Process in VP bank

Abstract

This research is developed with the objective of identifying the main problems that lead to the downturn of credit growth rate of VP Bank during 2018. It was captured that VP Bank has faced up with lower credit growth rate in 2018 and this symptom was explained by some problems, namely SBV’s credit growth cap, peer-to-peer lending, overlapped products, lower lending interest rates from bigger banks, higher document processing time, impolite collection activities, slow SMS and mobile internet banking, lack of live banking services, high lead time for customer complaints, incorrect information by sales teams, and less attractive advertising contents. However, only two problems are actually existed, namely higher document processing time and incorrect information by sales teams. Other problems have not had high impact or have no impact in coming years. Based on that, the researcher proposes set of solutions to help VP Bank to further decrease the time required for document processing and to reduce adverse impact from wrong information provided by sales officers. The set of solutions are translated to change plan with detail solutions, detail actions, people management, and communication.