Luận Văn Solution To Improve Sales Performance Of Thrid-Party Sales Agency Channel.doc

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------
TRẦN CAO MAI TRÂM
SOLUTION TO IMPROVE SALES
PERFORMANCE OF THRID-PARTY SALES
AGENCY CHANNEL IN HSBC BANK VIETNAM
MASTER OF BUSINESS ADMINISTRATION
Ho Chi Minh City – Year 20

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------
Trần Cao Mai Trâm
SOLUTION TO IMPROVE SALES
PERFORMANCE OF THRID-PARTY SALES
AGENCY CHANNEL IN HSBC BANK VIETNAM
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: Dr. Lê Thị Thanh Xuân
Ho Chi Minh City – Year 20

TABLE OF CONTENTS
LIST OF FIGURES ...................................................................................................... 4
LIST OF TABLES ........................................................................................................ 4
EXCUTIVE SUMARY................................................................................................. 5
ACKNOWLEGEMENT............................................................................................... 7
CHAPTER 1: INTRODUCTION................................................................................ 8
1.1 HSBC Group overview: ........................................................................................ 8
1.2 HSBC Vietnam background & organization structures: ....................................... 9
1.3 Overview of third-party company – MOCAP Vietnam Joint Stock Company: . 11
CHAPTER 2: PROBLEM ANALYSIS .................................................................... 13
2.1 Symptoms of company: ....................................................................................... 13
2.1.1 Background of symptoms: ............................................................................ 13
2.1.2 Symptoms analysis: ...................................................................................... 14
2.2 Problem analysis: ................................................................................................ 19
2.2.1 Potential problems 1: Ineffective Project Organization Structures &
operational issues ................................................................................................... 19
2.2.2 Potential problem 2: Wrong customer segments touching ........................... 22
2.2.3 Potential Problem 3: Poor Sales-forces Capacity ......................................... 23
2.3 Central problem validation and consequences: ................................................... 26
2.3.1 Central problem validation: .......................................................................... 26
2.3.2 Consequences of central problem: ................................................................ 29
CHAPTER 3: CAUSE VALIDATION ..................................................................... 32
3.1 Potential causes: .................................................................................................. 32
3.1.1 High-staff turnover rate: ............................................................................... 32
3.1.2 Lack of salesforces training for agent: ......................................................... 33

3.1.3 The shortage of headcount (sales forces): .................................................... 33
...............................................................................................................................
34
3.2 Main Cause Validation: ....................................................................................... 34
3.2.1 High staff turnover rate in TPSA Channel: .................................................. 34
3.2.2 Shortage in Sales agents of TPSA channel: ................................................. 36
3.2.3 Lack of salesforce training for TPSA agent: ................................................ 37
CHAPTER 4: ALTERNATIVE SOLUTION & ACTION PLAN ......................... 40
4.1 Alternative Solution: ............................................................................................ 40
4.1.1 Alternative Solution 1: Supporting fees on incremental headcount increase
...............................................................................................................................
40
4.1.2 Alternative Solution 2: Developing training program for TPSA agents: .... 42
4.2 Solution Selected: ................................................................................................ 43
4.3 Action Plan: ......................................................................................................... 44
CONCLUSION............................................................................................................ 49
CHAPTER 5: SUPPORTED INFORMATION....................................................... 50
5.1 Summary of methodology conducted: ................................................................ 50
5.2 Transcription: ....................................................................................................... 50
REFERENCE .............................................................................................................. 60

LIST OF FIGURES
Figure 1: HSBC Vietnam Organization structure
Figure 2: Percentage of contribution of RBWM Sales Channel
Figure 3: Percentage of contribution of RBWM Sales Channel in the last 3 years
Figure 4: Percentage of contribution of TPSA channel in 7 ASIA markets
Figure 5: HSBC – TPSA project organization chart
Figure 6: TPSA channel – Credit Card Application Handling
Figure 7: TPSA sales agents resources in 2018
Figure 8: Initial causes and potential problem
Figure 9: Initial - Causes and effect diagram
Figure 10: Productivity break down by sales agent vintages
Figure 12: Final – Cause and effect diagram
Figure 13: Alternative solution 1 – Human resources planning
LIST OF TABLES
Table 1: HSBC Bank – RBWM Sales Performance in 2018
Table 2: HSBC Bank – RBWM Sales Performance Contribution in the last 3 years
Table 3: Approval rate of HSBC Credit Card by Channels
Table 4: Sales Performance plan of HSBC RBWM in 2019
Table 5: Human resource recruitment cost
Table 6: Alternative solution 2– Action plan
Table 7: Training Course – Training Agenda

EXCUTIVE SUMARY
As one of market leader in Credit Card selling in Vietnam financial market,
HSBC Banks issues more than 75,000 cards into market as of December 2018. Giving
the fact that, Vietnam financial market is potential and promise market for banking &
financial industry with golden young population and middle-income. With the
ambitious accumulate the largest market share, HSBC operated TPSA channel as
supported sales channels (besides HSBC in-house sales force) to capture new to banks
customer in major city like Hochiminh city. Although, recently TPSA channel gain
sales performance developed year on year, it’s not achieved sales expectation (around
10% contributed to RWBM total sales volumes), which was set by HSBC’ group when
operated TPSA channel in Vietnam market. The purpose of this thesis is evaluating the
root causes leading under contribution of sales performance expected in TPSA channel
to total sales volume of HSBC Banks in recent year. Then find the best solution to
implement in the next year to push-up sales performance of TPSA channel achieving
the performance expectation of HSBC Group. This thesis consists of 4 main chapters:
- Chapter 1: the introduction about HSBC Bank in Vietnam and overview of TPSA
agency – Mocap Vietnam Joint Stock Company.
- Chapter 2: the description about the general of symptoms and identify the central
problem leading to this symptom. Recently, the symptom was after three years
operated and experienced TPSA channel in Vietnam market, HSBC project can meet
the percentages of contribution (10%) to RBWM sales volumes.
- Chapter 3: the validation of all causes leading to the central problem and evaluated
which was the main causes leading to the central problems.
- Chapter 4: propose two potential alternative solutions for choosing the best solution
to drawn out action plan for implementation.
After evaluating basing on the combination of primary and secondary data, in-depth
interview and theory support, the key finding of theis shown the problem of HSBC project
is poor sales capacity in TPSA channel. Then, a list of these main causes collected via in-
depth interview and literature review drawn out. The shortages of sales agents in HSBC –
TPSA project is the main causes leading to central problem (poor
5

sales capacity). In current situation of HSBC project, the solution in supporting fee for
each incremental headcount increase seems to good solution and applicable to help
TPSA agency turn out shortage sales headcount in short-term. Furthermore, this
solution might help TPSA agency take the risk of investing in new sales forces and
respond to the challenges of Vietnam market for sustainable growth in long-term
business.
6

ACKNOWLEGEMENT
I would like to show my gratefulness and special thanks to my supervisor – Dr. Le Thi
Thanh Xuan for all her continuous support, advices and instructions during the process
of writing this thesis. Without her advises, this master thesis cannot be completed.
Needless to say, her guidance and instructions helped me in all the time of writing
thesis. Then, I also would like to show my gratitude to my manager, my colleagues at
HSBC Bank who gave me chance to conduct research and also thank you to their time
spending on interviews with me to come up the result of thesis.
Lastly, I also send my sincere thankfulness to my parents and friends for their support
and encouragement during the time which I took the master course.
7

CHAPTER 1:
INTRODUCTION 1.1 HSBC Group overview:
HSBC is one of international finance organization and banking biggest over the
world. HSBC serves for than 38 millions of customer via four multi-national business
services such as: retail banking and wealth management, commercial banking, global
banking and market, global private banking. HSBC network covers over 66 countries
and territories in Europe, Asia, the Middle East and Africa, North America and Latin
America.
The name of HSBC is an acronym for The Hong Kong and Shanghai Banking
Corporation Limited, the founding member of HSBC, which was constitutive in 1865,
with the aim of financing the developing trade among India, China and Europe. HSBC
puts headquarter in London, United Kingdom. Nowadays, HSBC has been considered
one of the top organizations with branch network spread out all over the world which
provides the service in finance and banking with high quality and security guarantee.
HSBC positions its brand through the message “The world's local bank”. HSBC is
headquartered in London, United Kingdom.
There are 12 main dates in history timeline of HSBC Group:
– March – April 1865: HSBC established in Hong Kong and Shanghai. It was
the first bank owned by the local and operated based on the principles of
Scottish banking.
– By 1875: HSBC appeared in seven countries throughout Europe, North
America and Asia. It financed the exportation activity from China, India,
Philippines and Vietnam.
– By 1900: HSBC spread out the network into 16 countries to finance trade
around the world. The business was surrounding ingot, exchange and
trading.
– 1910: HSBC broadened the variety of activities in Asia by providing loans to
governments in the locals for projects of modernization and infrastructure.
8

– By the 1920s: Business in Asia began to accomplish again despite of
inhibition caused by The First World War and trading in commodity
especially rubber and tin increased rapidly.
– 1935: New head office was designed by architects Palmer and Turner, applied
the popular decorative style of Art Deco.
– 1941: During the time of The Second World War, staff in Asia became war
prisoners. Only branches that ran in London, India and US remained in fully
operated condition.
– 1950: HSBC played main role in reconstructing Hong Kong’s Economy after
war ending by supporting for manufacturing and business.
– By the 1970s: HSBC widen its variety of activities in trading by acquiring
Mercantile Bank and The Middle East British Bank.
– 1992: HSBC’s headquarters were moved to London after acquiring Marine
Midland Bank in the US and UK.
– 1998: HSBC unified its brand and logo of hexagon to utilize in all branches.
– 2016: HSBC continued expanding business to growing areas.
HSBC Strategies:
HSBC in one of the world’s leading international banks, with exceptional access to
high- growth market and a strong balance sheet. “We are uniquely placed to help
customers around the world achieve their ambitions” (John Flint, HSBC Group Chief
Executive).
HSBC values: D-O-C is the core value of HSBC.
• D stand for Dependable
• stand for Open – HSBC open to different ideas and cultures.
• C stand for Connected – HSBC connect to customers, communities, regulator
and each other. HSBC aim to building connections, being aware of external
issues, collaborating across boundaries.
1.2 HSBC Vietnam background & organization structures:
In 1870, HSBC established the first office in Saigon, big city of Vietnam. Until
1995, HSBC run into business a branch with full financing and banking service. In
2005, HSBC opened another branch and a representative office in Hanoi and Can Tho
9

City respectively. According to HSBC Vietnam Financial Report 2017, total asset of
the Bank reaches VND 87,786 billion; revenue in 2017 is VND 2,727 billion and
profit after tax takes 65.2% over revenue, increases 23.5% compared to the one in
2016. At the present, HSBC is considered one of the largest foreign-owned banks in
Vietnam with regard to investment capital, branch network, wide range of products
and services, number of employees and substantial customer data base. In Vietnam
market, HSBC operated in 4 sectors: RBWM, Wholesales Banking, Global Liquidity
and Cash Management, Global Trade and receivable finance and securities services.
Figure 1: HSBC Vietnam Organization structure
Headquarters:
The Metropolitan, 235 Dong Khoi Street, District 1, Hochiminh city.
Awards:
 Best Foreign Bank in Vietnam 2006 – 2012, 2014, 2015, 2016, 2017, 2018 by
Finance Asia

 Best Trade Finance Bank in Vietnam 2018 by Euromoney Trade Finance Survey

 Best IPO by Finance Asia for Vinhomes US$1.349 billion Initial Equity Offering,
HSBC is a joint bookrunner

 Best Deal in Vietnam by Finance Asia for Vinhomes US$1.349 billion Initial
Equity Offering, HSBC is a joint bookrunner

 Best Loan Adviser in Vietnam 2018 by the Asset Triple A
10

 Best IPO in Vietnam by the Asset Triple A for Vinhomes US$1.349 billion
Initial Equity Offering

 Best syndicated loan in Vietnam by the Asset Triple A for VinFast Trade
and Production US$400 million syndicated term loan facility

 Visa Global Award for the Highest International Authorization Approval Rate
for Consumer Credit International in 2017

 Best Foreign Investment Bank in Vietnam 2015, 2017 by Finance Asia

 Best International Bank in Vietnam 2017 by Asia money

 Best Domestic Cash Manager 2010 – 2017 by Euromoney Cash
Management Survey.
1.3 Overview of third-party company – MOCAP Vietnam Joint Stock
Company:
MOCAP Joint Stock Company was established business in Vietnam since 2009
with charter capital was VND 50 billion. MOCAP Joint Stock Company consists of
four shareholders: Mitsui & Co. (ASIA PACIFIC) PTE. Ltd, Smart Media Joint Stock
Company, Moshi Moshi Hotline Inc, Harvey Nash Vietnam. MOCAP VN operates in
2 major cities is Hochiminh and Hanoi with total of 600 employees and 5 Japanese
expats. MOCAP Joint Stock Company provides wide range of service category from
full outsourcing operate to partial support operation such as: dispatching, insourcing
and human & facility outsourcing. In Vietnam market, MOCAP VN provides
outsourcing for 8 projects of Contact Center Operation and 15 projects of Business
Process Outsourcing with 4 major clients as: telecom company, Foreign Insurance
Company, Foreign Bank, Japanese Company. Mocap Joint Stock Company provides
outsourcing Call Center Business Line to HSBC Bank in Vietnam follow service types
as Tele-sales (Outbound). This project follows up with business model as B2C
(Business to customers) with scales of more than 100 employees in HSBC project.
MOCAP VN is an external party engaged by HSBC Bank to contact an existing or
potential HSBC customers and offer HSBC credit card. In generally, MOCAP VN
11

significantly differentiates ourselves in Vietnam market in term of products types and
service to clients. Furthermore, with strong support from MOCAP’s Shareholder,
MOCAP Joint Stock Company promises to provide high quality services to Clients,
ensuring to protect the information assets of Client from all threats, either internal or
external, accidental or deliberate. As international brand with strong company
philosophy, highly commitment and experienced in Vietnam market, MOCAP Joint
Stock Company was chosen as Third-Party Sales Agency for HSBC Bank in Vietnam
since 2015 with vision to push up HSBC Retail Banking and Wealth Management
performance in term of Credit Card product.
12

CHAPTER 2: PROBLEM
ANALYSIS 2.1 Symptoms of company:
2.1.1 Background of symptoms:
In Retail Banking and Wealth Management of HSBC Vietnam, credit card
plays as key product of retail customers sector. In definitions, credit card is an
alternative means for making payment. This payment is made on credit, means that the
cardholder is not required to pay any money immediately for their purchases. The
credit card issuing bank first pays the merchant for the purchases and the cardholder
settles the transaction amount on or before the payment due date. Furthermore, a credit
card also allows the consumers to “revolve” their balance (means no need to paying
the statement as indicated in the credit card monthly statement in full. The minimum
payment amount stated in the credit card statement must be paid on or before the due
date.
In detail, Retail Banking and Wealth Management (RBWM) is divided into
four channel of distribution strategy. There is branch network, mobile sales forces, in-
house contact center tele-sales and third-party sales agency channel (names as TPSA
channel), following with detail functional as below:
• Branch network focuses on servicing walk-in customers and acquire new sales
through services, majority of customers are living in major city where we have
HSBC Transaction Officers, such as Ho Chi Minh city, Hanoi, Da Nang and Binh
Duong.
• Mobile sales focus on activation booths at shopping mall, supermarkets and
companies in Ho Chi Minh City and Hanoi.
• In-house Contact Center Tele-sales focuses on the Bank’s leads, cross- selling on
existing portfolio and member-get-member (customer’s referral). Customers
acquired by Contact Center would come from different cities in the approved areas
to sell HSBC Credit Card.
• Contact Center TPSAs ( both tele-sales and mobile sales forces) focus on new-to-
bank card acquisition in approved cities of living. The big number of customers
acquires by TPSA would be the good portfolio for in-house channel to tap in to
cross-sell other product as Personal Instalment Loan, Mortgage, Saving account, etc.
13

Giving the fact that, HSBC is the market leader in Credit Card in
Vietnam with over 75,000 credit cards as of Dec 2018 which contributed by four
above sales channels. Out of 75,000 credit cards acquired in 2018, branch network
sales channel demonstrated mainly around 43%, whereas TPSA sales channel
contributed at 8% to total sales volume. The purpose of thesis is demonstrated and
analyzed the efficient of TPSA Sales channel of HSBC in Vietnam market. In
definition, a TPSA is an external party engaged by the HSBC to contact an existing
or potential HSBC customer and offer products, propositions and services of the
Retail Banking Business of HSBC. In Vietnam market, TPSAs are engaged by
HSBC for simple product and services such as Credit Card. TPSA agents authorized
to represent for HSBC to offer HSBC’s product, services to customers, mainly
basing by TPSA company database. TPSA agents advise the credit card product
feature and required documentation through telephone and TPSA has field-sales
agents to collect document at customer’s offices. HSBC typically pays the agency
(TPSA company) based on per unit sale or percentage of value of the product sold.
In detail, payment terms between HSBC and TPSA company on monthly basis
which concluded variable fee basing on actual cards acquired in the month. HSBC
pays TPSA companies variable fee on each new credit cards as service fee agreed
on service agreements. HSBC have operated TPSA channel since 2015 and started
with 20 TPSA agents. A TPSA agent is an individual appointed by a TPSA by way
of an employer-employee relationship. As of Dec 2018, HSBC cooperated with
TPSA company named as Mocap Vietnam, both of them are global outsourcing
services firms, ranked 13th
/100 biggest outsourcing companies worldwide. The
reputation and experiences in outsourcing services will be helpful for two agencies
moving fast in Vietnam market in coming year, growing revenue and turn around
the financial situation.
2.1.2 Symptoms analysis:
Following up business model, TPSA channel play as a kind of outsourcing
services of HSBC Vietnam. In HSBC business strategy, TPSA deployement strategy is
defined by Vietnam RBWM Management team to ensure it extends the distribution
reach whole complementing the existing internal sales channels. TPSA actively use
14

their own customer database to promote and offer HSBC Credit Card through Tele-
sales model. The credit card product selling guideline provided to TPSA channel is the
same guideline applied for all HSBC sales channel in Vietnam. The reason for
proposing the use of TPSA channel of HSBC RBWM Vietnam are: better access to
targeted market and gain additional capacity to grow business, limitation in expanding
internal sales forces, diversifying concentration of in-house sales channel.
Furthermore, according to business strategy in Vietnam, TPSA channel only focus on
card acquisition while in-house channel (include: branch network, tele-sales, mobile
sales) are selling multiple products. The big number of new to bank customer acquires
by TPSA channel would be the good portfolio for in-house channel to cross-sell other
products such as: personal installment loan, mortgage and insurances. In HSBC
Vietnam, TPSA channel was set up in 2015 with one company (names as Mocap VN)
which well-known as international outsourcing agency in customer service and
banking products. In 2017, HSBC Vietnam achieved more than 26,700 new credit
cards which TPSA channel contributed is 6% (around 1,599 cards) to total sales
volume. However, the annual overall plan in 2018 expected TPSA channel contributed
10% in total sales volume of HSBC Vietnam.
% CONTRIBUTED OF SALES CHANNEL
TPSA channel
8%
Branch network
Telesales
18% 32%
Direct sales
(mobile sales)
42%
Figure 2: Percentage of contribution of RBWM Sales Channel
However, after two year launched and fully operated in Vietnam market, TPSA
channel have not achieved the performance expectation of HSBC group to reach out
15

10% contribution of total RBWM sales volume in HSBC Vietnam. Whereas, other in-
house sales channel is exceeded performance expected setting by HSBC group at the
beginning of 2018. Below table is Sales Performance Expected of RBWM Vietnam:
RWBM Sales Performance in 2018
Total Sales % % % Variance
Channel (credit Contributed Contributed (Actual/
cards) Plan Actual Plan)
Branch network 23,962 31% 32%  1%
Mobile Sales 31,377 41% 42% 1%
Tele-sales 13,811 18% 18% 0%
TPSA 6,073 10% 8% 2%
Total RBWM 75,223 100% 100% 0
Table 1: HSBC Bank – RBWM Sales Performance in 2018
Sals channel
2017 2018 2019
Actual Plan Actual Plan Actual Plan
Branch network 38% 35% 32% 31% 30% 29%
Direct sales (mobile sales) 39% 38% 42% 41% 49% 47%
Telesales 18% 17% 18% 18% 14% 14%
TPSA channel 6% 10% 8% 10% 7% 10%
Total RBWM Vietnam 100% 100% 100% 100% 100% 100%
Table 2: HSBC Bank – RBWM Sales Performance Contribution in the last 3 years
16

60%
50%
49%
47%
42% 41%
39% 38%
40%
30%
38%
35%
32% 31%
30%
18% 17% 29%
20%
18% 18%
14% 14%
10%
0% 6%
10%
8%
10%
7%
10%
Actual Plan Actual Plan Actual Plan
2017 2018 2019
Branch network Direct sales Telesales TPSA channel
Figure 3: Percentage of contribution of RBWM Sales Channel in the last 3 year
On the other hand, HSBC have operated TPSA model as support channel growing
sales performance in seven markets of Asia Pacific like Indonesia, Myanmar,
Singapore, HBID, MNL, CBH. There were 20 TPSA agencies selling Credit Card &
Personal Installment Loan for HSBC in seven Asia Pacific markets, as at Dec 2018.
Number of agents grew by 8% over first haft of 2017. TPSA contribution to overall
Credit Card sales for RBWM grew in 2017 and were significant in INM (24% vs 16%
in 2016), HBID (41% vs 36% in 2016) and MYH (23% vs 19% in 2016). On the other
hand, total contributions of TPSA channel to RBWM sales in Vietnam was stable at
6% in two recent year, while as HSBC group expected the contributed maintain at
20% of total sales volume for sustainable growth. In Vietnam market, HSBC Vietnam
set performance expected for TPSA channel is 10% contributed to total sales volume
of RBWM. However, after 3 year launching and fully operated in Vietnam market,
HSBC TPSA channel have not reached out 10% contributed to total RBWM sales
performance in 2018.
17

% Contributed of TPSA channel in 7 Asia markets
80% 72%
70%
60%
50%
36%
41%
40% 34%
30% 24%
19%
23%22%
17% 16%15%
20% 14% 13%
11%
10% 10% 11% 6% 10% 6% 6%
8%
0%
INM HBID MYH SGH MNL CBH VNM
% of RBWM Sales in 2016 % of RBWM Sales in 2017 % of RBWM Sales in 2018
Figure 4: Percentage of contribution of TPSA channel in 7 ASIA markets
According to Mr. Sabbir (head of Retail Banking & Wealth Management in
HSBC Vietnam) deployed: “TPSA channel play as a priority key to HSBC Retail
Banking business in Vietnam market. Following up sustainable growth in Vietnam
market, HSBC have to focus to develop TPSA channel as supporting sales channel to
push-up sales performance of RBWM Vietnam exist target. Furthermore, in TPSA
channel can be played as low-cost strategy in card acquisition to HSBC in comparison
with in-house channel (such as: branch network, mobile sales, tele-sales channel).”
Similar with theory informed about the expectation benefit of banking industry when
decided to outsourcing such as: reduce and control operational cost and gain
sustainable competitive advantages by achieving an unique winning when
combination and maximize the capabilities of in-house sales forces with the
outsourcing sales forces as Jain RK & Natarajan (1) advised.
Furthermore, as Diromualdo and Gurbaxani (2) stated outsourcing might have
organization improve overall performance and enhance customer services also as De
Quinn (3) advised. Therefore, basing on in-depth interview and theory informed,
HSBC TPSA management team have to investigated the root-cause which lead to low
sales performance in TPSA channel and find out solutions to push-up percentages of
contributed to total RBWM sales performances.
18

2.2 Problem analysis:
Giving the fact that, TPSA channel still plays as key development of HSBC
business in Vietnam, it is important to figure out the reason why TPSA channel cannot
achieve percentage contributed to total sales volume of RBWM. Furthermore, to
investigate and drawing detail TPSA business, 2 in- depth interviews is conducted to
two main categories of interviewee group (first group is HSBC site and second group
from TPSA company site). In detail, in HSBC site, we conducted in-depth interview
with HSBC TPSA Management team. Besides, second group presented for TPSA
company which included: Top management of TPSA company: Human resource
Manager, HSBC project manager, senior team leader and sales agents. As the result of
all in-depth interview, there are narrowed down 3 potential problems which lead to
low sales performance in TPSA channel such as: poor sales capacity in TPSA channel,
wrong customer touch to acquire HSBC credit card by TPSA sales agents, ineffective
in HSBC TPSA project organization and operational process.
2.2.1 Potential problems 1: Ineffective Project Organization Structures
& operational issues
Giving the fact that, there are two TPSA company with fully operated with around
63 TPSA agents divided into four small team. In HSBC project with each TPSA
company appointed one project manager and two team leaders, 1 trainer, 1 quality
assurance and 1 administrator. As interview conducted to TPSA project manager
confirm that “Each TPSA company gain tighten control in operation process with
sufficient administrative staff.” In overall, HSBC project organization visualize as
bellow chart:
Figure 5: HSBC – TPSA project organization chart
19

As HSBC - TPSA manager declared in the interview: “The scope of control of each
TPSA team leader manage maximum 18 agents for effective observation and coaching
conducted.” Furthermore, on HSBC site, RBWM has a designated TPSA Management
team to manage and oversight of TPSA operation consisting of one vice president
sales department, one HSBC TPSA managers and two TPSA control management
officers. As business owner (Vice President of Sales Department) said that: “This team
is critical to ensure effective deployment of TPSA teams, agents training, sales and
services quality monitoring, governance and control activities which alignment with
updated regulatory requirements.” For operational process of TPSA channel is similar
with other in-house channels of HSBC in term of the process to approve and issued
HSBC credit card. Because, as the agreement between HSBC and TPSA company,
TPSA is mainly in-charge in contacting customer to offer HSBC credit card and then
fulfill & collect credit card applications and hand-over to HSBC for further processing
in granting and issued card limit. In general, the operation process finalizes the end-to-
end TPSA sales process as: TPSA sales agents contact customer using TPSA’s
company own databases to introduce HSBC credit card. The documents are collected
by TPSA sales agents, then perform checked by TPSA senior team leader and
administrator before they are transferred to HSBC TPSA management team. In
general, the end-to-end process of applications started from TPSA sales agents calling
customer to issued credit card can be finalized as below:
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Customer
TPSA Sales
agents
Field Sales
agent
Admin team
- Face-to-face meeting with
Field Sales to give applications
and go through OS & SV
process. (*) (3)
Customer
decline
Agent calls customer to
End
offer product. (1)
Customer agrees
- Collect application
- Verfy customer’s signature (SV)
- Do original sighted (OS) on documents
(*) (2)
Check quality of
applications (4)
- Call back customer to
get acknowledgement on
full understanding on
product feature, T&C. (5)
Send application to
HSBC for verification
& approval process
(6)
Figure 6: TPSA channel – Credit Card Application Handling
process
21

As Vice President of Sales Management who oversight both in-house tele-sales
channel and TPSA channel confirmed that: “Actually, with more than three years in
operation auditing or management TPSA channel control and governances, so HSBC
TPSA management gain strong skill set and excellent problem-solving skill, attention
to detail and ability to work well under high complex environment such as TPSA
model. But with above knowledge and experiences, there is nil stuck or insufficient
process in TPSA operations on daily work.” As theory informed as Pearl Zhu (4)
informed the symptom to identify if the organization structure effective or not is that
working process is effective or not. Furthermore, as in-depth interview, HSBC TPSA
Manager also compared about “the turn-around time (means the length process when
submit application to approve & issued credit card) is similar between TPSA channel
and others sales channel in HSBC Vietnam”. Because all step belong to credit control
and verifications are conducted by HSBC Credit Control department similar with other
sales channel in HSBC. Hence, to sum-up, “there is nil finding in potential operational
risk or insufficient organization or control and governance in TPSA channel in recent
four years relationship” as HSBC TPSA manager confirms.
2.2.2 Potential problem 2: Wrong customer segments touching
As service agreement between HSBC and TPSA partners, TPSA companies used
their own database and portfolio to acquire new customer which align with HSBC’s
requirement. As align with HSBC RBWM Vietnam growth strategy, target customers
for credit card product have been adjusted to include those with the following
characteristics:
- Salaried employees (especially those working for HSBC corporate customers,
or large and reputable companies in Vietnam)
- High educated such as university graduates
- Having an above averages income without a lot of borrowings.
- Likely to maintain a long-term customer relationship with potentially higher
product ratio.
Moreover, potential customers database of TPSA companies will be reviewed by
HSBC management team before using. The sourcing guideline provided to TPSA
channel is the guideline applied for all channel in HSBC Vietnam. TPSA company
22

have to ensure that the database acquired by them must be from legal sources as
agreement between HSBC and TPSA partner. Besides that, Mocap company have a
large customer database which they have built up over many years and we can
leverage on their own database to acquire more business. Customer’s portfolio of
TPSA channel in recent year is medium salary earners who qualified for HSBC card in
Classic and Cash Back card customer segments. Furthermore, the quality of customer
segments acquired by TSPA channel can be shown on the approved rate (the number
of successful applications versus total application submitted by TPSA channel) in
compared with other in-house sales channels. According to HSBC Credit Control
department report, the approval rate of TPSA channel is sustainable around 70%,
slightly behind with others sales channel is 73-75%.
Approval Rate
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
(%)
Branch Network 73 69 71 70 71 72 70 75 77 75 78 76
Mobile Sales 74 71 75 71 73 73 72 77 78 77 73 78
Tele- sales 72 67 68 64 69 71 70 76 75 73 79 75
TPSA channel 67 70 71 67 74 69 67 70 70 71 72 70
Table 3: Approval rate of HSBC Credit Card by Channels in 2018
To sum up, as the interview with HSBC TPSA manager declared: “There is no
difficulty with TPSA companies in customer segment database alight with HSBC
targeted customers. Due to the fact that, both TPSA companies have cooperated as
outsourcing service for a lot of multi-national companies and they have more
experienced in Vietnam market.” Hence, as business owner - HSBC TPSA
management do not find out TPSA companies touching wrong customer segment is
the problem lead to TPSA channel cannot achieved performance expected.
2.2.3 Potential Problem 3: Poor Sales-forces Capacity
As data in sales performance in 2017, we found that TPSA channel cannot
achieved performance expectation setting by HSBC Vietnam to contributed 10% of
total sales volume. We conduct in-depth interview with Senior management of both
23

HSBC and TPSA companies to find out the reason why TPSA channel cannot meet
the performance expectation.
Firstly, as the interview with HSBC TPSA Manager who represent for HSBC in
managing and oversight TPSA channel to see how does high staff turn-over rate
impact on productivity and sales-forces capacity of HSBC project. As HSBC TPSA
Manager declared: “Although we start operated TPSA channel since 2015, sales forces
of TPSA channel have not achieved 70 sales agents as we expected due to impact of
high-staff turnover rate, together with the difficulty in headcount optimizing, TPSA
channel always have shortage sales agents in compare with resources plan due to
high recruitment cost. The average staff vintages of TPSA channel is 6 months
(including one-month probation), means that after sixth- month work for HSBC
project, sales agents will leave the project.” Moreover, high-staff turnover rate will
lead to lower sales performances due to new joiner usually have lower performance
and productivity. In fact, sales staff have to spend more than four months to gain fully
knowledge about banking product and strong portfolio customer database for
achieving performance (KPIs). Furthermore, as current data in 2018 shown that TPSA
channel have hight staff turn over rate more than 20%.
TPSA resources in 2018
90
24%
25%
80 76 77
71
70 68 65 20%
60
60
59 59
54 54 56 56
15%
50
40
10% 10%
11%
10%
30 8% 8% 8%
6%
20
5% 5%
3% 3%
10
2%
0 0%
Jan-18 Feb-18 Mar-18 Apr-18 May-1 8 Jun-18 Jul-18 Aug-18 Sep-18 Oct-1 8 Nov-18 Dec-18
TPSA agent (count) % turn-over rate
According to her, TPSA agencies have faced with a lot of challenges in human
resource management, especially in HSBC project. In more than 2 years relationship,
HSBC project have not achieved 80 agents (sales staffs) due to high staff turn-over
24

rate year on year growth. The staff turn-overate of HSBC project remain high rate
more than 20%, hence lower productivity and lower sales volume as impact of
shortage sales agents in HSBC project. HSBC aim to expand more than 80 sales
agents in TPSA channel with contributed more than 10% of HSBC Sales performance
by the end of 2019.
Secondly, we conduct interview with TPSA- HSBC project manager who
represent for TPSA company take responsibility in managing sales staff in HSBC
project to see that the reason why TPSA channel gain a high staff- turnover rate in
2018. As TPSA Project managers assumed that: “High staff turnover rate maybe
because of fixed salary & incentive scheme apply to sales agents”. As TPSA Project
managers mentioned: “ Giving the fact that, incentive scheme and fixed salary of sales
agents is attractive in comparision with local market. We are still facing with high-
cost in recruitment and training for sales staff knowing about HSBC banking product
(especially HSBC credit card). Because banking product is more complicated with
other product, the learning curves usually more than two months. Hence, in probation
times, sales staff only earn fixed base salary, no incentive scheme apply.”
Furthermore, as in-depth interview with human resources manager of TPSA
company commented: “According with local regulatory, we pay fixed salary to sales
agent comply with policy. However, it’s still under salary range of market.
Furthermore, the total cost payout for recruiting new staff more than 7 million VND.
That the reason why in base salary of new joiner usually lower.” Moreover, as Human
resource of two TPSA companies deployed: “TPSA agencies are faced with high turn-
over rate of sales agents. The turnover rate is very high in comparison with the
industry average rate is 15%. TPSA agencies cannot have ability to recruit more sales
agents to optimizing headcount in HSBC project.” Also, as TPSA project manager said
that: “The reason why we have trouble with high staff turnover rate is lower fixed
salary and lower incentive scheme which cannot retain sales agents work long-term
with HSBC project”. Furthermore, TPSA model have to used their own database to
acquire new customers to HSBC, hence the cost in purchasing potential customer
database costing a huge which impact directly on incentive scheme payout to sales
agents.
25

Lastly, we also conduct interview with sales agents who working for HSBC
project for understanding about KPIs system and incentive scheme. According to sales
agent in HSBC project, the incentive scheme and fixed salary is meet their
expectation. However, as sales agent mentioned: “It’s hard to achieve sales bonus
scheme or incentives due to high-pressure on target. Furthermore, they find it hard to
gain career development opportunity not only in improving knowledge, but also about
career path for the next 2 year in HSBC project”. In general, sales agents said about
incentive scheme was attractive in compare with market, but the pressure in achieved
KPIs in project so stressful, together with there is no career path opportunity in long
time that the reason they decided to quick-out project.
To sum-up, through literature review and in-depth interview, there are three
main reasons lead to the percentage contributed of TPSA sales channel to HSBC
RBWM have not achieved performance expected setting at 10% are: ineffective
HSBC project organization structure and operational process, wrong customer
segment touching by TPSA sales agents and poor sales capabilities in TPSA channels.
In short, initial map from interview of potential problem could be drawn as below:
Figure 8: Initial causes of symptoms and potential problem
2.3 Central problem validation and consequences:
2.3.1 Central problem validation:
26

As mentioned above, there are three main potential problem which leading to
failure in achieving percentage contributed of TPSA channel to total sales volume of
HSBC RBWM are: ineffective HSBC project organization structure and operational
process, wrong customer segment touching by TPSA sales agents and poor sales
capabilities in TPSA channels. However, in term of the importance and priority of
problem solving, it is essential to identify the central problem potential cause for
further investigation and recommendation for prompt implementation. Through
literature review as Gregg Greenberg (5) citied: “common reasons leading to the
failure in sales performance of company usually leading by seven reasons, mainly
driving by lack of sales capabilities which represent such as sales agents capacity and
sales agent’s productivity”. Besides, as Gil Cargill (
6
)
mentioned: “another reason
leads into the low productivity and sales capacity is wrong selection at recruitment
process.” Moreover, as Mantara (7) agreed that: “sales forces effectiveness represents
as an opportunity to improve sales performance and sales revenues of each company.”
Besides, as in-depth interview with HSBC TPSA manager mentioned: “the poor sales
capacity and how to develop sales capabilities of TPSA channel is one of key element
leading to push up sales performance of TPSA”. Furthermore, basing on current
performance statistic of TPSA channel in 2018 shown the averages productivity of
TPSA sales agent in 2018 fluctuated around 7.0 cards per agent per month (in the first
half 2018), perspective in the second half 2018, averages productivity increase to
around 9.0 – 10.0 card per agent per month. The reason why productivity in second
half 2018 was higher than first half due to the impact of market (high season for
banking product), customer’s demand using credit card for purchasing usually increase
dramatically from summer season to Christmas season. Whereas, the average TPSA
sales agent in 2018 was stable at 60 agents, calculating: 60 agent * average
productivity 8.0 cards/month = actual 480 cards per month for TPSA channel (versus
performance expected was more than 500 cards per month). The shortages in sales
forces cause to the shortages in cards which leads TPSA failing in achievement 10%
contributed to totals sales volume of RBWM HSBC according to business plan in
2018. Furthermore, as in-depth interview with TPSA project managers concluded that:
“Due to the nature of work and quality of sales agents TPSA channel just only
27

maintain averages productivity around 8.0 to 10.0 cards per agent per months, it’s
seem too difficult to increase productivity of TPSA sales agents more than 10 cards
per months, because it’s take time and huge investments in training skills and
knowledge to sales agents. For the time being, TPSA company satisfied with setting
productivity around 10 cards per agent per month, hence we need to increase sales
headcount to optimizing if we want to achieve performance expected as plan in 2019.”
On the other hand, as Vice-President of HSBC Sales Departments shared about HSBC
business plan in 2019 as: “ In 2019, RBWM HSBC still maintain expected 10%
contributed of TPSA channel to total sales volume of HSBC Vietnam in credit cards
market, in detail more than 770 new HSBC credit cards will be acquired by TPSA
channel on monthly basis.” In addition, according to HSBC business plan setting for
2019, it’s pointed out strong and consistent sales forces increasing play as key roles
for TPSA channel achieved performances expected. If TPSA channels be able to
increase and maintain headcount optimizing around 80 sales agents, it’s possible for
TPSA contributed total 10% to HSBC RBWM sales in 2019. Basing on calculated: 80
sales agents * averages productivity around 9.6 = 770 cards per months.
Sales Performance Plan in 2019
Sales Channel
Card Acquisistion
% Contributed actual
(credit cards)
Branch network 25,824 27%
Direct sales (mobile sales) 45,020 47%
Telesales 16,416 17%
TPSA channel 9,280 10%
Total 96,540 100%
Table 4: Sales Performance plan of HSBC RBWM in 2019
Therefore, to sum-up as following up with literature review and in-depth interview, the
poor sales capabilities in TPSA channel can be seen as central problem leading to low
sales performance of TPSA and below expectation in percentages of contribution of
TPSA channel to total sales volume of HSBC RBWM in Vietnam market. With the
purpose to investigate and remediate actions for solving this problem, the cause
validation and drawing cause and effect map as follow part will be discussed in detail.
28

2.3.2 Consequences of central problem:
As learning from best practices investment in other countries, HSBC formalized
TPSA channel play as key contributors in Credit Card Sales acquisitions because
credit card was clarified as low- risk product that the reason why HSBC choosing
outsources in acquiring for low-cost acquisition. Furthermore, it’s strategy help in-
house sales channel focus on others products such as: personal installment loan,
mortgages, saving account and life insurances. But in reality, TPSA channel still
facing with the poor sales capacity issues which pointed out as priorities actions need
to be solved in Retail Banking sector of HSBC, because it leads to many consequences
in HSBC business in Vietnam such as: reducing RBWM Vietnam sales volume,
operation loss for TPSA companies, not align with HSBC Group strategy in Retail
Banking in Vietnam market. In general, the consequences of poor sales capacity in
TPSA channel causes two main impact on HSBC business in Vietnam financial
market as below:
• Loosing opportunity to capture market share in Credit Card issuer in
Hochiminh city:
As strategy in Vietnam market, HSBC utilize TPSA channel as supported sales
distributions to help HSBC Vietnam excess target with low-cost card acquisition.
Furthermore, TPSA channel also help HSBC reduce risky of the existing internal sales
channel as business continuity plan in case in-houses channel have issues in resources
capacity. Poor sales capacity in TPSA channel will leads HSBC loose sustainable
competitive advantages in Credit Card market compare with other rivals. Following up
the mission as HSBC Vietnam commitment to become one of the top three credit cards
issuer in Vietnam financial market on the next three years that the reason why HSBC
push TPSA channel as support channel to capture market segment in Hochiminh city.
As Dibb et al (8) citied: “Market segmentation play as important factor of robust sales
channel strategy development.” Moreover, Hochiminh market segment meet all
criteria of HSBC credit card in term of: average monthly income, market
demographic. According to Koushan Dash (9): “ HCM city has the highest the average
salary ranking in Vietnam at $US 456 (10.7 million) per month, which gain 38%
higher compare with average national wages.” Whereas, HSBC targeted customers
29

with average monthly income just above 6.0 million is eligible for HSBC credit cards.
As E-commerce’s industry in Vietnam of EBVN report (10) forecasted that : “Ho Chi
Minh will reach out over 10 million inhabitants by 2030, which occupied around 23%
of Vietnam’s total urban population.”, which seems as potential market segment for
TPSA channel catch-up if we gain full-capacity sales forces.
• Long-term sustainable growth in Vietnam financial market for both HSBC
and TPSA agency (Business to Business):
The relationship between of HSBC and TPSA company is the kinds of B2B
(business to business) modern, hence as Chan (11) cited: “The achieving profitable and
sustainable growth plays as key success factors for the relaitonship.” As in-depth
interview with Head of RBWM of HSBC Vietnam shared: “HSBC want to maintain
long-term relationship with TPSA agency for co-operate growth, HSBC gain more
credit card acquisition in Vietnam market through TPSA channel. Besides, HSBC
expected to support TPSA company not only in financial capacity but also for
resources capital for sustainable relationship.” Moreover, in the theory inform, as
Nolan (12) citied: “There are six stages of growth in B2B business such as: stage 1-
initiation, stage 2-contagion, stage 3- control, stage 4- integration, stage 5- data
administration, stage 6- maturity”, the B2B model of HSBC and TPSA agency is on
stage 4 – integration. Addition as Chan (11) mentioned: “ Stage 4 in Nolan’s Six Stage
of Growth is stage for business to demand better capacity and control for more
efficient co-operation.” Hence if HSBC and TPSA channel have to re-enforce the sales
capacity in HSBC project for more sufficient and efficient business on the integration
stage. Furthermore, according to Vice President of Contact Center Sales &
Management declared: “ If TPSA still maintain poor capacity, it may cause not only
huge impact on Sales volumes in HSBC project and but also the operating loss for
TPSA company. As low-cost provider, TPSA was offered low-price in each card
acquisitions for HSBC, that the reason why TPSA company need maintain strong
sales-force capabilities for maximizing sales capacities far away from operating loss.”
On the other hand, from TPSA companies sites, TPSA Account Project Manager said
that: “Recently, TPSA company is operating losses in HSBC project due to low sales
performances which mainly driven by poor sales capacity. If we will not find any
30

solutions for this problem, TPSA may consider to close down business with HSBC in
credit card outsourcing in Vietnam market.” She also add-in: “
To be sum-up basing on theory informed and in-depth interview as above, the poor
sales capacity in TPSA channel is pointed out many consequences for HSBC RBWM
Vietnam in credit card sales volume in current situations.
31

CHAPTER 3: CAUSE VALIDATION
3.1 Potential causes:
Giving the fact that, there are many reasons leading to poor sales-force capabilities
of each company and TPSA agencies is not an exception case. It is essential to pointed
out the potential casues that leading to poor sales-forces capacity in TPSA agencies
and the consequences to solve. As according to theory support and from the result of
in- depth interview carried out there are such many causes leading to the poor sales
staff capabilities in TPSA channel. However, there are three potential causes which
driving suggested as: high-staff turnover rate, low individual productivity of individual
sales agent and the number of headcounts is not optimizing for both TPSA agencies
which leading to poor sales capability in organization.
3.1.1 High-staff turnover rate:
As theory by Warsi (13) mentioned: “high turn-over rate is defined as the
process in which employee leave the enterprise and need to replace by another, high
turn-over rate causes consequences in organization productivity and performance.” On
the other hand, Abbasi et al (14) stated as “employee plays as major contributor to
organization competitor advantages in term of performance”. Hence it is essential for
organization to decrease the staff turnover rate for better company performance. Also,
as Mabindisa (15) stated “staff turnover causes negative impact on organization
capacity and performance.” It is no doubt that working for the organization gain the
high staff turnover rate leads to demotivation of current employees and make more
concerned about the same decision whether they should leave the organization which
causes productivity of organization also decreased. Furthermore, especially for finance
institutions (such as: banking and finance services), when employee turnover occurs,
banks have to cover substantial cost, due to once employees quit their job, there exist
enomorous replacement costs that banks have to incurs according to Ahmed, Sabir,
Khosa (16) stated. Furthermore, as Stovel & Bontis (17) treat: “ bankers as an asset of
the bank”, hence when the staff decided to left the organization might fail to retain
employees’ potential customer as Goyal & Joshi (18) concluded. That the reason why,
the high staff turnover rate leads to the low performance of organization together with
the poor capability of sales forces.
32

3.1.2 Lack of salesforces training for agent:
As Ahmad & Bakar (19) declared that training plays as key role to improve not only
individual productivity but also increase organization performances. Besides that as
Birdi K & Clegg C & et al (20) suggested that training is indispensable strategic tools
help individual performance become more effective. Training help each sales agent
gain more competitive advantages, that the reason why each organization have to take
into consideration for investment on training to gain the sustainable competitive
advantages. Furthermore, as Kennedy (21) advised it’s essential for each company
identify training need of its employees and design program which can utilize and
optimize the salesforces go align with organization objective. Moreover, due to the
characteristic of finance product, wide knowledge of banking product is one of
essential tools for sales agent gain more potential customer together with improve their
productivity. In a nutshell, according to many literature review and theory as above,
together with Falola (22) concluded that training is one of key tools which help
enhance employee performance and if organization pay more attention in investment
on training on yearly basis with believed that company might gain sustainable
competitive advantages.
3.1.3 The shortage of headcount (sales forces):
Giving the fact that, sales forces is one of most important elements to empower
organization’s performance. That the reason why, the improving effectiveness of sales
forces get more and more investment of every enterprise. As Heide (23) informed:
“The sales forces contributed as high as 40 percent of total sales performance,
company usually spending about 10 percent in investment the sales forces capacity.”
That the reason why, as Johnson (24) advised: “ The U.S economy usually spends
approximately over $800 billion on sales-forces investment each year.” Besides, as
Zoltners (25) concluded that: “ Company can increase sales volumes or sales
performance when company can maximizing the capacity and effectiveness of their
sales forces.” With above theory informed, the sales forces effectives play as key roles
to drive up sales performance of each company, which need to receiving the
investment for full-capacity sales forces. Furthermore, the effectiveness sales forces
not only support company in increase sales performance but also help company
33

avoiding some mistakes related to few employees handling large customer portfolio.
On the long-term, the lack of sales forces impacts on both sales revenues and
company’ reputation also. Summarize as Zoltners (25) advised: “Every company have
an opportunity in improve sales performance through utilize full-capacity of sales
forces.”
From above analysis and basing on literature informed together with result of
in-depth interview with business owners in HSBC TPSA channel, it could be
formalized in cause and effect map as below:
Figure 9: Initial - Causes and effect
diagram 3.2 Main Cause Validation:
3.2.1 High staff turnover rate in TPSA Channel:
As literature review, Collin (26) cited: “The healthy organization defined as
organization consist high morale, low turn-over rate which leading to high
productivity and high performance” and also as Tangen (27) confirmed: “it’s more
profitable for long-term sustainable growth if organization can minimize turn-over rate
and maximize employee productivity.” Furthermore, as in-depth interview carried out:
“the high staff turn-over rate mainly leading to low productivities in TPSA channel” as
TPSC HSBC project manager declared. Because according to sales report of TPSA
channel in 2018 shown that, the highest productivity belongs to group of sales agents
34

who works for HSBC project more than 12 months, from 10 to 18 credit cards per
agents per month. Whereas, for group of staff vintages from 3 month on job to 6
months on jobs have lower productivity in compare with the other group vintages.
Individual Productivity break down staff vintages
20
18
12
18 17 10
17
16 15 9
9
10
9
14
8
14
13
8 13
8
12
7 12 7
7
12
6
10
10
10
10 6
9 8 9
4 8 8
8 7 7 7
7
6 6 6 6 4
6 5 5
4
5
2
5 5
4
5
4
4
3
2
2 2 2 2 2
2 2 2 2 2 2
2
1
0
0 0
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
> 12 MOB 6- 12 MOB 3- 12 MOB < 3MOB New card productivity (units) by TPSA vintages
Figure 10: Productivity break down by sales agent vintages
Moreover, deeply investigation showing that the group of staff vintages more than 12
months gain the highest staff turn-over rate. As TPSA project manager said: “Due to
the characteristics of banking product (especially for Credit Card) which requires a
huge knowledge and experiences about banking and finance, hence that the reason
why the staff who work for HSBC project longer and they can get higher
performance”. However, due to the fact that, for experienced staff like the group of
vintages more than 12 month on HSBC project requires more career development
opportunity, otherwise it finds easy to other companies hunts them with better offers.
Similarly, with theory informed as Li, Frenkel & Sander (28): “employee who works
with high performance expectation are more emotionally attached and identified to
better workplace”. Below graph is the report of human resources in HSBC Project
throughout the year of 2018 provided by HSBC internal report. According to the
graph, the staff turnover rate of TPSA in 2018 reached to the highest point at 24% in
April, but showed the down ward trend by the end of 2018, which decreased to around
5% in December 2018. In in-depth interview, HSBC TPSA Manager shared: “ In April
2018, HSBC project have faced with the resigned of more than 10 experiences staff
35

(who work in HSBC project more 12 months) with the reason as they got better offer
in others bank insinuations.”
TPSA resources in 2018
90
24%
25%
80 76 77
71
70 68 65 20%
60
60
59 59
54 54 56 56
15%
50
40
10% 10%
11%
10%
30 8% 8% 8%
6%
20
5% 5%
3% 3%
10
2%
0 0%
Jan-18 Feb-18 Mar-18 Apr-18 May-1 8 Jun-18 Jul-18 Aug-18 Sep-18 Oct-1 8 Nov-18 Dec-18
TPSA agent (count) % turn-over rate
In summary, according to Internal HSBC report, the average staff turnover rate
of TPSA project was stable at 8% in 2018, which higher 3% in compare with HSBC
in-house. However, as report of FARO in 2017 (29) defined: “Vietnam banking
sector’s overall turnover rate in this year is over than 10%, which is resemble last
year’s.” Hence, high staff turnover rate in HSBC project cannot be seen as main cause
of poor sales capability of TPSA channel, due to the turn-over rate still lower than
average turnover rate of industry.
3.2.2 Shortage in Sales agents of TPSA channel:
As Harper (30) suggested that: “Sales forces capacity forecasting play as one of
key element in strategic planning, too many employees might drive up overhead and
impact on business profitability. Whereas, too few employees will limit the ability to
serve current customers and grow the business.” It’s seemed to fix with HSBC project
at current situations. The lack of sales agents in HSBC project directly impact on total
sales volumes of TPSA agency. Fewer sales agents might cause higher volume of
work and error increases when handling huge customer portfolio. Furthermore, in
banking product like business line between HSBC and TPSA agency, any mistake or
36

unclear communication of sales agents not only impact on HSBC product & HSBC
reputation, but also cause financial loss to customers. Furthermore, as White (31)
declared:“ inadequate staffing levels were one of primary causes of stress as 53% of
the employees who responded to the Global Benefits Attitudes survey. For that reason,
if HSBC project can operate with full-capacity in term of sales agents, which will help
increase sales productivity, and decrease high staff turn-over rate in HSBC project
also. Hence, the shortages in sales agents can be seen as one of roots causes leading to
low sales performance in TPSA channel, which need to solve first in development plan
of HSBC Vietnam.
3.2.3 Lack of salesforce training for TPSA agent:
Recently, in HSBC project, TPSA agents only have employee orientation deploy
on the first month probation when they joined to HSBC project. It’s is course
completed within five days, which is conducted by HSBC trainers and TPSA trainers
or team leader trained by HSBC. As requirement of HSBC group, TPSAs must
demonstrate coverage of the following training areas as overview of HSBC Vietnam
bank and product specific training. After finished five days training, sales agents have
paper test by HSBC TPSA Manager. It’s mandatory for sales agents pass this test
before they can go-live to communicate with customer. If sales agent fails this test,
they need to re-attend training course and perform testing again. However, after on-
boarding training, sales agents have not any training conducted by weekly or monthly
by both HSBC & TPSA companies. As according to TPSA Manager shared in the
interview: “we do not deploy any training course for sales agent in improve sales skill
or product knowledge. They have to learn everything by themselves via observation
how other agent communicate with customer, together with best practice sharing for
experience agents. There is lack of frequency updated session or training program for
sales agent.” According to another in-depth interview with sales agent who works for
HSBC project more than 6 months shared that: “In fact, the fixed salary and incentive
scheme of HSBC project is not below the average of industry, however, it’s lack of
training to improves sales skill, career development opportunity for us if continue
work for HSBC project”. Furthermore, as business owner and risk controller of TPSA
oversight business, she also concluded that: “ In recent, HSBC just spending time for
37

training the new joiner to have knowledge about HSBC credit card for communicating
with customers only. For the group vintages of staff working for more than 6 months,
HSBC have not any training to upgrade skill set or knowledge to sales agents.” As
Branson (32) argued that: “ lack of employee training will lead to increase
significantly negative side effects to business in term of: low morale, unproductivity
and increase expenses also. Therefore, lack of training for current employees also seen
as one of cause leading to poor sales capability in HSBC project which need to solve
for improving sales performance and contribution of TPSA channel to totals sales
volume of HSBC Vietnam.
To sum up, based on all in-depth interview with business owner and literature
review, there are two main causes leads to poor sales capabilities in TPSA channel
which are lack of salesforce training for TPSA agents and the shortage of sales agents
in TPSA channel. Through the analysis of cause above, it is can be seen the
connections between of two causes, hence the final cause and effect diagram can be
drawn as below:
Figure 12: Final – Cause and effect diagram
In fact, there were link between three main causes of issues, high-staff turnover
rate linked to the shortages sales agents in HSBC project, as quick-respond, TPSA
agency need to process quick recruitment to fulfill lack of headcounts – also leads to
lack of training process for TPSA agents. As mentioned above, the staff turn-over rate
38

in HSBC project still below the average of Banking & Financial institution industry,
hence HSBC should pay attention on solving another two factors as: shortage in
headcount and lack of training in firstly. Furthermore, it also pointed out that the
shortage of sales agents is mainly cause driving to poor sales capacity of TPSA
channel. Because of if we can gain the full-capacity of sales agents in TPSA channels,
the productivity will be improved significantly. Believing that, if HSBC Bank and
TPSA agency co-work to solve above 2 factors, the sales performance will increase
significantly, and staff-turnover rate also demises as Branson (32) famously consulted:
“train people well enough so they can leave, treat them well enough so they don’t want
to go”. Hence, the following section will mainly discuss about the alternative solutions
to solve the primary root-cause the shortages in FTE of TPSA channel and additional
solution to support TPSA agency in developing training program to TPSA sales
agents.
39

CHAPTER 4: ALTERNATIVE SOLUTION & ACTION
PLAN 4.1 Alternative Solution:
4.1.1 Alternative Solution 1: Supporting fees on incremental
headcount increase
Current Situation:
In fact, HSBC expected to ram-up plan for TPSA channel maintain around 80
sales agents by the end of 2019. However, TPSA company have found it difficult to
meet the expected Sales staff capacity as per the HSBC recruitment standard and stuck
in cost- recruitment as Labor Law of Vietnam. According to Local Law, below table is
breakdown the total cost-recruitment of TPSA channel which company find difficult
have to deal with:
No Items
Cost
breakdown
1 Basic salary under Vietnam Labor Law 4,605,000
2 Compulsory benefit and allowance under Vietnam Labor law 1,092,750
3 Working allowance under TPSA company’s policy for 279,000
employee’s retention.
4 Recruitment fee 465,000
5 Motivation fee (by contest/qualified leads investments, etc) 651,000
6 Telephone charge (a part of, not full yet) 697,500
Table 5: Human resource recruitment cost
Objective:
To respond to the challenges and the market environment, HSBC Vietnam proposes to
adopt a TPSA development support model that helps the agencies buid up their
capacity dedicated to HSBC. In particularly, beside the service fee pay on monthly on
the number of credit card which acquired by TPSA agency, HSBC will apply tactical
financial support to TPSA company for the incremental increase in headcount given
that the new joiners (new staff) will incurs more cost for the TPSA company and the
productivity is low in beginning months. This does not impact the regular payout
process as current practices.
Proposal:
Support cost in recruitment for incremental FTE : Development support proposal for
TPSA: increase sales staff capacity – achieve 80 sales agents by the end of 2019. The
fixed fee will be paid for new incremental sales agent who join in HSBC project and
40

complete one-month probation as TPSA company’s policy. In other words, the new
sales agents finishing one-month probation at work in HSBC project will be eligible
for the fixed fee for new incremental. The fixed fee for new incremental will be paid
one time per one new incremental agent. This development support will be capped at
total 80 FTE per agency and subject to review with country’s discretion. The
minimum number of sales agents in TPSA channel is 50. HSBC will pay to TPSA
Company from the 51st
sales agents onwards, and not exceed 80 sales agents.
Pay-out is based on the planned incremental FTE multiply by 7,500,000 VND per
FTE. This is a one- off payment (e.g.: Jan 2019 = 50, plan by Mar 2019 = 70).
Incremental of 20 FTE by Mar 2019. 7,500,000 *20 FTE = 150,000,000 VND)
Governance and control: The actual FTE reported will also subjected to check
against the:
• Compliance training attendance registered
• Recruitment as per HSBC standard
• Activity benchmark – The FTE must have a min of 5 applications
submitted in a month (the month during the checks).
In fact, alternative solution 1 also causes some pros and cons as below:
Benefit:
Following up with this alternative solution in fixed fees for new incremental
headcount increase might bring for both HSBC & TPSA agency some benefits as
below:
- Help TPSA agency meet the minimum number of plan FTE in HSBC project.
- Support TPSA agency turn-around cash flow stretched & mitigate the financial
loss.
- Help TPSA agency overcome challenges of market environment
- Support TPSA skill-up sales force by the end of 2019.
- Helps the agencies take the risk of investing in new sales force and tide over the
initial un-productive phrase when the agents are new and under training.
- Improving sales capacity together with TPSA channel sales performance in
HSBC project.
41

Cost estimation:
Estimate funding for the support: :Maximum amount: 30 sales agents with
7,500,000 VND/new agents:
a. Total incremental cost = 30*7,500,000 = 225,000,0000 VND
4.1.2 Alternative Solution 2: Developing training program for TPSA
agents:
Objective:
As according to Branson (32) suggest one of effective tools for improve sales
performance are: “regularly invest in seminars and courses and mentorship
programmers’”. That the reason why, HSBC should take into consideration for
additional support to TPSA agency in development training programs for TPSA agents
work for HSBC project. Basing on current sales-forces capacity, HSBC will support
TPSA agencies planning and budget for training upgrade sales agent productivity and
reducing staff turn-over rate.
Proposal:
We will distribute TPSA agents into 3 groups, one group no more than 20 sales agents,
basing on their current productivity and working experiences in HSBC project. HSBC
Bank will send HSBC training manager to deploy training to each group of TPSA
sales agents during timeline as agreement between HSBC and TPSA company. This
training program will cover all courses related to increase sales skills, product
knowledge with establish for long-term career development for TPSA agents. Due to
characteristic of TPSA sales agents, HSBC suggested to distributed all sales agents in
HSBC project into 3 group as below:
• Group 1: Sales-agent vintages from 1 – 6 months
• Group 2 : Sales -agent vintages from 6 – 12 months
• Group 3: Sales-agent vintages over 12 months.
However, the evaluation of the benefit and cost of alternative solution 2 should be
taken into consideration as below:
42

Benefits:
First of all, it’s additional support of HSBC offer to TPSA in long-term
relationship. With high standard in training & developing employees, HSBC Banks
can help send professional trainer with high-quality material to trained TPSA agents.
There are some benefits when deploy training program as below:
- Improving product knowledge and sharpen sales skills for TPSA agents.
- Build high-standard work-force in HSBC project.
- Increase the awareness of TPSA agents in customer services related HSBC
credit cards.
- Increase productivity and quality of work
- Reduce staff-mistake and customer complaint related to fee& charge or service
of HSBC Bank.
- Positively affect work- morale and reduce staff turnover rate
Cost:
- As mention, it’s an addition support of HSBC to TPSA agency, not related to
any cost occur, as trainer is HSBC employees and follow up with material built
by HSBC group and HSBC Vietnam.
4.2 Solution Selected:
In current situation of HSBC project, the alternative solution 1 seems to good
solution and applicable to help TPSA agency turn out shortage sales headcount in
short-term. In comparison, although alternative solution 2 do not cause any impact in
financial outcomes, it’s not directly solved the roots causes of shortage in sales agents.
Alternative solution 2 can be deployed together with alternative solution 1 to improve
individual sales agents productivity, in case MOCAP VN company agreed with
recommendation of HSBC in training programs. Giving the fact that, TPSA agency
treated as outsourcing partnership with HSBC, hence HSBC do not allow to interfere
too much on human management and training their agents, if there is not agreement
between two enterprises.
Furthermore, as TPSA Project Managers declared: “Due to policy of HSBC and
avoiding internal conflicts between each project outsourcing, MOCAP VN do not
43

allow agents rotation between company project.” Hence job rotation or swapping sales
agents among projects outsourcing treats as restriction.
On the other hand, as HSBC Group’s requirement in looking for outsourcing
agency too complicated due to high demand in quality and reputation of TPSA agency.
That the reason why, HSBC find difficulty in setting new project with another
outsourcing services company. As head of HSBC RBWM shared: “Actually, HSBC
and MOCAP VN have been strong relationship since 2015 until now. In Vietnam
market, there is still lack of famous and global outsourcing services company meet
requirement of HSBC Group in Third-party sales agency, hence supporting &
cooperating with MOCAP VN for long-term relationship is priority action in short
term. In recently, HSBC do not think looking for new outsourcing agency due to some
difficulties such as: complicated process for new on-boarding, few outsourcing
companies in Vietnam market meet requirement of HSBC Group.” Besides that, HSBC
TPSA Managers also shared her view: “Even though, applying support fee for
incremental headcount increases to TPSA agency, the cost per acquisition (services
fee which HSBC must pay to TPSA agency per Credit Card approved) still lower than
cost per card acquired by HSBC in-house channel. That the reason why, HSBC pay
attention into increase full-capacity sales forces in TPSA channel in the next 12
months.”
To be sump up, the alternative solution 1 taken as priorities action of HSBC to
solve the problem of shortage in sales agent headcount in the next 10 months. Besides,
HSBC can propose the alternative solutions 2 to TPSA agency as additional solutions
for building strong sales forces in HSBC projects in long-term.
4.3 Action Plan:
Alternative Solution 1: Fixed fees for new incremental headcount increase
Below graph is the scheduled for human resources planning when developing
alternative solution for fixed fees for new incremental headcount increase:
44

Figure 13: Alternative solution 1 – Human resources planning
45

Process Actions items PIC Time Scale
Proposes -Review sales capacity in HSBC project. TPSA – Project Manager Mar 2019
Recruitment HSBC TPSA Manager
Plan
Selection -Job posting on online and offline channel. TPSA – Project Manager April 2019 –
candidates -CV candidates review and evaluate Oct 2019
Hiring process -Sending test online TPSA – Project Manager May 2019 –
-1st
interview (Face to face). Testing communication, sales HSBC TPSA Manager Nov 2019
skill, experiences, attitude, teamworking,)
-Selected qualified candidate for joining 2nd
interview.
-2nd
interview testing: Sales test, knowledge product &
services.
-Choose qualified candidate and waiting for submit pre-
employment check
Develop talent -Orientation days: company overview, regulation (do & TPSA – Trainers May 2019 –
strategies don’t), confidential commitment, policies, other HR HSBC – Training Managers Dec 2019
procedures.
-Soft skill training: Tele-sales career, Tele-sales service,
target customers, communication skills (on phone),
problem solving.
-Product & Service training
Review and -Re- evaluate how effective and sufficient of support fee on HSBC– Vice President Jan 2020
evaluate incremental headcount increased. HSBC TPSA Manager
Table 6: Action plan - Alternative solution
46

Alternative Solution 2: Development training program support by HSBC
Group 1: from June 2019 – Nov 2019 (once per month)
Course : Orientation days Person in charge
Receiving the equipment, introduce about workplace, set team TPSA Manager
Training about job skill and job knowledge
TPSA Trainer
HSBC Trainer
Practice with realistic job and answer any queries of new joiners
HSBC Trainer
TPSA Trainer
On-boarding training
offline training - online training
HSBC Trainer
TPSA Trainer
Review probation period
TPSA Manager
HSBC TPSA Manger
Group 2: from April 2019 – June 2019
Course : Person in charge
Day 1: Quarterly engagement review HSBC Trainer
Day 2: Sales skill set migration – Everyone over 10
HSBC Trainer
HSBC TPSA Manger
Day 3: Improve customer services & role plays
TPSA Sales agents
HSBC Best Seller
Group 3: from Jan 2020 – March 2020
Course : Banking Development program Person in Charge
Day 1: Developing Soft skill for Banker HSBC Trainer
Day 2: Problem Solving in Sales process HSBC Trainer
Day 3: Customer Services enhancement HSBC Trainer
Day 4: How to get customer’s referral HSBC Trainer
Day 5: Important of after sales-service HSBC Trainer
47

Table 7: Training Course – Training Agenda
Group Day Course Name
HSBC Overview
Credit Card product feature
Credit Card benefit (Home & Away, Rewards & mileage. Installment,
Day 1
Platinum card exclusive privileges
Credit Card Application
HSBC relating Policy & Procedure (Complaint Handling, Consequence
Management, Dormancy Control, PVC, Cross border Selling policy,
end-to-end sales process)
Do & Don’t Tele sales
Day 2
Assessment test on Credit Card Product feature
Group 1 Call Script & Card T & C (checklist) & Call Quality
Group Role Play
Review Credit Card Knowledge
Day 3 Make phone calls to existing TPSA agents and HSBC in-house Tele
sales
Day 4 Global Standards & EDRAS
Day 5
CMS system
Attach with mentor
Follow up
Mentor/ Coach monito trainee’s call. Frequency provide feedback for
improvement and ensure that trainees bring what they have learnt to
action
life.
Need establish skills
Day 1 Objection handling skills
Group 2
Close Safe
Day 2 Role play to establish customers’ need and handle objection
Day 3 Assessment test on Credit Card Product feature & promotion
Follow up Team leaders conduct real time monitoring and listen to trainee’s call.
action Conduct 1:1 coaching.
Day 1 Refresh training EDRAS
Day 2 Listen to own calls
Group 3 Day 3 Best practice sharing and identify good examples (every day activity)
Follow up
Team leader help trainees identify what are their road blockers and
trainees must come up with a new development plan in details.
action
48

CONCLUSION
This thesis has focused on finding the main problem causing under achievement
of sales performance of TPSA channel in HSBC Bank Vietnam. Thus, among
potential problem lead to sales performance below expectation, the shortage in
headcounts of sales agents in TPSA channel is proved as the key element. Prioritize,
HSBC take into consideration in supporting fee in each incremental headcount
increase might help TPSA agency can achieve full sales force capacity. The purpose of
this thesis was pointed out clearly and inform the real issues that is occurring in HSBC
project of TPSA channel. Basing on evaluating pros and cons of proposed solutions,
HSBC Bank will take action immediately according to action of the best solution.
Lastly, believing with the best and applicable solution and detail action plan
which can help HSBC – TPSA channel turn-around the current situation for
sustainable growth in the long-terms.
49

Chapter 5: SUPPORTED INFORMATION
5.1 Summary of methodology conducted:
In this thesis, two types of data: primary and secondary data were collected. The
purpose of combination two types of data was to identify and solve the central
problem. Firstly, secondary date was collected from some reliable sources such as:
internal report, sales performances, internal policy and operation process. Besides,
some relevant online literatures, journal and economy books, researches, etc. were
used to strengthen the theory and conclusion when compared the resulted of the
interviewees mentioned and the current situations in HSBC- TPSA channel. Secondly,
primary data was obtained in this thesis via conducting a qualitative research. The
main method in collecting qualitative data in this thesis was in-depth interview. To
give full-background, the researchers conducted two times of in-depth interview for
respondent of internal HSBC and external HSBC (means TPSA company) to explore
the potential problem and another interview is used to seek causes. Each in-depth
interview took around 30 minutes, questionnaire was designed as open-ended question
to obtain full and valuable information. Furthermore, in-depth interviews were
conducted with two groups of respondents as below:
• The first group: include representatives of HSBC Bank such as: Mr. Sabbir -
Head of RBWM, Mr. Phat- Vice-president of TPSA channel, Ms.- Ha HSBC-
TPSA Managers.
• The second group: include representatives of TPSA company (MOCAP VN)
such as: Ms. Lan- Project Managers, Ms. Thao - Deputy of Project Managers,
Mr. Hung - Human resources mangers, Sales agents.
5.2 Transcription:
Transcript 1:
Interviewer : Tran Cao Mai Tram
Interviewee: Mr. Sabbir – Head of RBWM HSBC Vietnam
Interviewer: Good morning, Sir. How are you today?
Interviewee: I’m good. Nothing much. May I help you?
50

Interviewer: I would like to have a short interview with you. Could you please give me
around 20-25 minutes to talk?
Interviewee: Yes. Sure. Pls, go ahead.
Interviewer: Today, I am going to conduct the interview with you about current issues
with TPSA channel. Firstly, I want to ask about HSBC’s strategies when using
outsourcing services to acquire credit card in Vietnam market?
Interviewee: HSBC Group decided to operate TPSA channel in Vietnam market with
purpose to gain bet better access to targeted market and gain additional capacity to
grow business, limitation in expanding internal sales forces. Additionally, TPSA
channel play as supporting channel to push up total sales volume of Retail Banking
and Wealth Management of HSBC Vietnam, especially in term of Credit Cards.
Furthermore, HSBC Group have run very successful TPSA channel in ASIA market
(such as: Singapore, Malaysia, Indonesia, India.) That the reason why, HSBC want to
outsource HSBC product to the Third-party Sales agency in Vietnam market.
Interviewer: But actually, the sales performance of TPSA channel do not achieved our
expectation (10% contributed to total sales volumes of HSBC, in term of Credit Card).
This problem occurs more than 2 years when we started to operated TPSA channel in
Vietnam market. So, what do you think about this problem?
Interviewee: However, when operating in Vietnam since 2015, there are some
challenges and difficulty with HSBC when utilize TPSA channel. Because the impact
of both sides TPSA channel and HSBC also. As I think, TPSA channel need more
time to learning and scale up business to achieve performance expectations.
Interviewer: Can you share about long-term strategy of HSBC in TPSA channel in
Vietnam?
Transcript 2: (Code 1A)
Interviewee: Mr. Phat – Vice President of Sales Management of in-house & TPSA
channel
Interviewer: Good afternoon, Sir. How are you today?
51

Interviewee: Yes. Sure.
with TPSA channel, especially in organization structure of HSBC project. Can you tell
me about the end-to-end process in credit card handling, comparison between TPSA
channel and HSBC in-house?
Interviewee: For operational process of TPSA channel is similar with other in-house
channels of HSBC in term of the process to approve and issued HSBC credit card.
TPSA is mainly in-charge in contacting customer to offer HSBC credit card and then
fulfill & collect credit card applications and hand-over to HSBC for further processing
in granting and issued card limit.
Interviewer: Do you think that organization structure of TPSA channel in HSBC
project is one of reason leading to low sales performances?
Interviewee: No. I don’t think so. Because when we compare the operation process
between in-house channel and TPSA channel apply the same end-to-end process.
Furthermore, The scope of control in TPSA channel was so strictly and sufficiently,
we combine the control of 2 sites: TPSA agency and HSBC TPSA Management team.
This team is critical to ensure effective deployment of TPSA teams, agents training,
sales and services quality monitoring, governance and control activities which
alignment with updated regulatory requirements. In fact, more than three years in
operation auditing or management TPSA channel control and governances, so HSBC
TPSA management gain strong skill set and excellent problem-solving skill, attention
to detail and ability to work well under high complex environment such as TPSA
model. But with above knowledge and experiences, there is nil stuck or insufficient
process in TPSA operations on daily work.
Interviewer: So, do you think what is the main problem which caused TPSA channel
cannot achieved 10% contribution in total RBWM sales volume?
Interviewee: As I think the main problem is poor sale capacity, especially is the
shortage of TPSA sales agents. Actually, after 3-year operating, TPSA channel cannot
52

achieve more than 80 sales agents in HSBC project. Hence, if TPSA still maintain
poor capacity, it may cause not only huge impact on Sales volumes in HSBC project
and but also the operating loss for TPSA company. As low-cost provider, TPSA was
offered low-price in each card acquisitions for HSBC, that the reason why TPSA
company need maintain strong sales-force capabilities for maximizing sales capacities
far away from operating loss. Furthermore, when we can ultilize team size at around
80 sales agents, we can minimize the impact on business operation when having staff
attrition.
Transcript 3: (Code 1B)
Interviewee: Ms. Ha – HSBC TPSA Manager
Interviewer: Good afternoon, Sir. How are you today?
Interviewee: Yes. Sure.
with TPSA channel, especially in organization structure of HSBC project. Can you tell
me about the scope of control in TPSA- HSBC project?
Interviewee: The scope of control of each TPSA team leader manage maximum 18
agents for effective observation and coaching conducted.
Interviewer: Do you see any insufficient control in operation process of project?
Interviewee: No. There is nil finding in potential operational risk or insufficient
organization or control and governance in TPSA channel in recent four years
relationship the turn-around time (means the length process when submit application
to approve & issued credit card) is similar between TPSA channel and others sales
channel in HSBC Vietnam.
53

Interviewer: Can you share about the customer segment touching by TPSA channel, in
compare with in-house channel? Do you think lack of customer database of TPSA
agency which is one of causes leading to low sales performance in HSBC project?
Interviewee: No. I don’t think so. Because, there is no difficulty with TPSA companies
in customer segment database alight with HSBC targeted customers. Due to the fact
that, both TPSA companies have cooperated as outsourcing service for a lot of multi-
national companies and they have more experienced in Vietnam market.
Interviewer: So, do you think what is the main problem which caused TPSA channel
cannot achieve 10% contribution in total RBWM sales volume?
Interviewee: Although we start operated TPSA channel since 2015, sales forces of
TPSA channel have not achieved 70 sales agents as we expected due to impact of
high-staff turnover rate, together with the difficulty in headcount optimizing, TPSA
channel always have shortage sales agents in compare with resources plan due to high
recruitment cost. The average staff vintages of TPSA channel is 6 months (including
one-month probation), means that after sixth- month work for HSBC project, sales
agents will leave the project.
Interviewer: So, what is key priority in your mind to leading up sales performance in
TPSA channel.
Interviewee: In my opinion, the poor sales capacity and how to develop sales
capabilities of TPSA channel is one of key element leading to push up sales
performance of TPSA.
Interviewer: Do we have any action plan to scale up sale capacity, especially in
solving the problem of shortage in sales agents headcount?
Interviewee: Yes. Recently, HSBC take into consideration about financial support to
TPSA agency to scale up the number of sales agents to achieve more than 80 agents in
the end of 2019.
Interviewer: If we apply financial support to TPSA channel, should we concern about
the comparision between cost per acquisition of in-house channel and TPSA channel?
Interviewee: Even though, applying support fee for incremental headcount increases to
TPSA agency, the cost per acquisition (services fee which HSBC must pay to TPSA
agency per Credit Card approved) still lower than cost per card acquired by HSBC in-
54

house channel. That the reason why, HSBC pay attention into increase full-capacity
sales forces in TPSA channel in the next 12 months to achieve sales performance
expectation.
Interviewer: HSBC want to maintain long-term relationship with TPSA agency for co-
operate growth, HSBC gain more credit card acquisition in Vietnam market through
TPSA channel. Besides, HSBC expected to support TPSA company not only in
financial capacity but also for resources capital for sustainable relationship.
Interviewer: Recently, do we have any plan in looking for one more outsourcing
agency in Vietnam market?
Interviewee: Actually, HSBC and MOCAP VN have been strong relationship since
2015 until now. In Vietnam market, there is still lack of famous and global
outsourcing services company meet requirement of HSBC Group in Third-party sales
agency, hence supporting & cooperating with MOCAP VN for long-term relationship
is priority action in short term. In recently, HSBC do not think looking for new
outsourcing agency due to some difficulties such as: complicated process for new on-
boarding, few outsourcing companies in Vietnam market meet requirement of HSBC
Group.
55

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