Internet banking services in Việt Nam have accelerated by 6.3 times over the past three years. Experts attributed the high growth to the popularity of the internet and smartphones in the country.
This article originally appeared on the Viet Nam News on 3rd November 2018. You can view the original article here: https://vietnamnews.vn/economy/469030/vietnamese-banks-take-advantage-of-digital-era.html#6VLQy3GX4ZcH8fFE.97
Viet Nam News HÀ NỘI – Việt Nam has seen a digital wave in the finance-banking industry, with many banks investing significantly into the segment, experts said at a conference on Thursday.
During the conference on digitalising the banking industry held in Hà Nội, director of the State Bank of Việt Nam (SBV)’s Payment Department Phạm Tiến Dũng cited data from an SBV survey that by the end of April this year, 94 per cent of local banks have invested in digitalisation, of which 42 per cent consider digital banking to be the top priority in their business strategy.
Internet banking services in Việt Nam have accelerated by 6.3 times over the past three years. Experts attributed the high growth to the popularity of the internet and smartphones in the country. By the end of 2017, Việt Nam had 45 million 3G/4G users and a majority of smartphone users. Payment through mobile banking services has also surged by a whopping 144 per cent per year over the past five years. Meanwhile, the same period has seen payments by traditional methods increase by only 40 per cent.
Seizing the trend, many banks have been embarking on the application of 4.0 technology and modernising their business models. Examples include the automated bank model LiveBank, digital bank model Timo or providing online consulting services through Live Chat. According to experts at the conference, banks prefer the application of digital technology thanks to its lower costs and wider coverage than that of traditional models.
The development of internet banking, mobile banking, payment solutions using QR codes, near-field communication technology (NFC), or advances in biometric technology using fingerprints and iris scanning has helped the banking industry bring new and convenient products and services to customers, which has helped banks reach sustainable growth in the long run thanks to an increase in revenue and profit from services and gradually reduce dependence on lending, they said.
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3 November 2018