Want to be in the loop?
subscribe to
our notification
Business News
BANKS ARE RACING TO CATCH DIGITISATION TREND: EXPERT
Việt Nam has seen a digital wave in the finance-banking industry, with many lenders investing significantly in digitisation, experts have said.
The COVID-19 pandemic might have had a severe effect on the economy, but it has helped accelerate banks’ digitisation, they told.
With many people looking for new options to deal with their financial affairs, digitisation of services and e-payments are becoming crucial, and banks, seizing the trend, have been embarking on the use of technology 4.0 and modernising their business models.
Digital technologies come with lower costs but offer wider coverage than traditional models.
The development of internet banking, mobile banking, payment solutions using QR codes, near-field communication technology (NFC), and advances in biometric technology using fingerprints and iris scanning has enabled banks to offer new and convenient products and services to customers, helping them achieve sustainable growth thanks to an increase in revenues from services and gradually reduction in dependence on lending.
The Joint Stock Commercial Bank for Foreign Trade Việt Nam (Vietcombank) launched its new digital bank service, VCB Digibank, last month integrating its online trading platforms.
Đào Minh Tuấn, the lender’s general director, said digital transformation has been identified as a key growth driver, and the bank is hastening the digital transformation process.
“We hope VCB Digibank will bring a new experience to and help millions of our customers enjoy convenience in every transaction with Vietcombank.”
The service has been developed based on a combination of internet and mobile banking platforms to provide a unified experience for customers.
The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and Housing Development Bank (HDBank) are also investing a lot of money into digitisation.
According to a survey last year by auditing firm PwC Việt Nam, Việt Nam was among the countries with the fastest rate of growth in mobile payments. The number of users had seen a sharp increase to 61 per cent from just 37 per cent the year before.
The country now has 70 credit institutions and payment intermediaries like e-wallets providing payment services online and through phone apps.
But there are still obstacles like the Vietnamese habit of using cash.
This is biggest barrier to digital banking development and there is a need to change people's mindsets, according to Phạm Tiến Dũng, director of the State Bank of Việt Nam’s payment department.
The central bank recently announced the electronic Know Your Customer, or eKYC, for opening accounts online.
Banks must improve the customer experience to make them satisfied with their products and services, Dũng said.
Source: VNS
Related News
![Card image cap](/uploads/news/Eco2.jpg)
GOV’T UNVEILS ACTION PLAN TO ACCELERATE INDUSTRIALISATION
Vietnam aspires to become among the top three industrial powerhouses in ASEAN, with the industrial sector contributing over 40 per cent to GDP. The manufacturing and processing sector is expected to account for around 30 per cent of GDP, with a strong emphasis on high-tech products aiming for over 45 per cent of the sector's value. To further drive the economy, the service sector is projected to contribute over 50 per cent to GDP, with tourism alone generating 14-15 per cent.
![Card image cap](/uploads/news/economic.jpg)
VIETNAM’S H1 ECONOMIC GROWTH QUITE IMPRESSIVE: ADB COUNTRY DIRECTOR
Country Director of the Asian Development Bank (ADB) for Vietnam Shantanu Chakraborty has expressed his impression of the Southeast Asian nation’s economic growth of 6.4 per cent in the first half of this year. The growth was mainly driven by strong trade recovery, where export grew by 14.5 per cent and import by 17 per cent over last year, he told the Vietnam News Agency. However, he said, the domestic segment remained sluggish.
![Card image cap](/uploads/news/Infrastructure13.jpg)
REAL ESTATE FIRMS AGGRESSIVELY RESTRUCTURING BOND DEBT
From the start of 2024 to July 5, the market saw 133 private placements and ten bond public offerings, totalling over VNĐ140 trillion. 65.6 per cent of this value was from the banking sector, while real estate bonds accounted for only 24.6 per cent, or over VNĐ34.5 trillion.
![Card image cap](/uploads/Logo/Cathay%20%281%29.jpg)
ONE-TIME OFFER: COMPLEMENTARY CATHAY PACIFIC LOUNGE PASS
Begin your trip on the right note in Cathay Pacific’s first-ever ferry lounge, located at Shenzhen’s Shekou Cruise home port. Situated at the end of the pier, the ferry lounge offers a breathtaking 270-degree view of the sea. You can immerse yourself in sheer luxury and revel in the panoramic beauty. Catch a glimpse of Hong Kong in the distance.
![Card image cap](/uploads/news/Industrial%20Zone.jpg)
VIỆT NAM TARGETS FULL MOBILE BROADBAND COVERAGE ON HIGHWAYS, INDUSTRIAL ZONES BY 2025
By 2025, Việt Nam aims to achieve one hundred per cent mobile broadband coverage on all national highways, expressways and railways under a plan to enhance the quality of Việt Nam’s mobile telecommunications network by 2025, which has been approved by the Ministry of Information and Communications (MIC).
![Card image cap](/uploads/news/Investment6.jpg)
VIETNAM ONE OF FASTEST-GROWING E-COMMERCE MARKETS IN SOUTHEAST ASIA
The report released on July 16 highlighted that the total GMV of Southeast Asia’s eight leading e-commerce platforms rose to $114.6 billion in 2023, up 15 per cent from 2022. The key drivers for the region's e-commerce GMV expansion in 2023 are Vietnam and Thailand, growing 52.9 per cent and 34.1 per cent on-year, respectively.