Digital banks attract significant numbers of Vietnamese customers

After only six months of launching MyVIB 2.0 digital banking application – which uses multi-cloud computing technology to process 60-70% of the input data to help banks realise ideas, bring products and services to the market faster and respond sooner to customer requests, VIB has doubled the number of customers compared to the previous year and reach the target of 4 million customers nearly a year earlier than expected.

Not only VIB, the wave of “cloudisation” of digital banking applications to expand modes and storage capacity, and increase integrated processing and user data security capacity has been invested in and implemented by many commercial banks.

Currently, VietABank, PVcomBank, VietinBank, Techcombank, SeABank, ABBank and OCB have all integrated cloud computing technologies to launch new digital banking platforms serving the sales of retail products and services, attracting millions of users.

The business results by the end of 2022 of banks showed a sharp increase in the number of new customers attracted by banks thanks to their digital applications. For example, MB last year added 7 million customers in the wake of developing Biz MBBank and Charity app while Techcombank with E-Banking apps (using AWS cloud computing technology) attracted an additional 1.2 million users in 2022. ACB and TPBank also said they recorded an annual growth of 30% in the number of customers using digital applications in the 2019-2022 period.

Along with the increase in the number of customers, the investment in new technologies and digitalisation of business activities have helped many banks attain significant achievements. For VIB and ACB, the proportion of revenue from retail activities was around 90% in 2022. Retail activities at other banks such as MB, Techcombank and Sacombank currently account for more than 50% of their business portfolio.

Recent research by Gimigo Vietnam showed 2023 will continue to witness fierce competition between banks in developing retail digital banking applications to gain market share.

According to Gimigo, the group of large State-owned banks such as Vietcombank, BIDV, Agribank, VietinBank and MB was leading in the retail segment thanks to being trusted by users and having a widespread network by the end of 2022. However, the group of private banks such as Techcombank, Sacombank, ACB, VPBank and TPBank have significantly improved their awareness level and attracted a large number of users in recent months.

Gimigo’s survey in Hanoi, Ho Chi Minh City and some other big cities showed the digital applications of Techcombank, ACB and Sacombank are currently competing strongly with large-sized State-owned banks. Other private banks such as TPBank and VPBank also have high net promoter scores (NPS). Thus, the group of banks has many opportunities to expand the customer base thanks to the existing group of loyal customers and the new customers.

According to experts, developing the networks of branches, transaction offices, POS and ATMs is no longer the banks’ top priority. Instead, they focus on digitisation of products and services. To maintain the number of customers, banks need to pay more attention to transaction costs, quality of products and services, staff attitude, customer service, and continuous improvement of online procedures.

Regarding the development trend of digital application generations this year, Gimigo said besides investment in cloud computing technologies and applying Artificial Intelligence (AI) and Machine Learning to develop applications to support retail sales of products and services, banks will tend to pour in an integrated open banking ecosystem.

Some banks, which have so far invested in purely digital banking models such as Cake, Timo, Tnex, Octo and Ubank, have attracted users. For example, VPBank’s Cake app currently has 1 million users.

Experts forecast banks will invest more in developing completely new digital banking brands in the near future. In which, micro products and services will be integrated into personal financial management tools to attract customers to use banks’ retail products and services./. VNS

Source and Image by: VietNamNet Global

Shopping Cart

Media Kit

    Data Protection

    Personal Data (“Data”) submitted for Media Kit (“Media Kit”), and/or collected in the form of first name, last name, email address and other contact details may be used for the purposes of inviting you to future events and for reaching out to you with content which may be of interest to you. For these purposes, The Digital Banker will share the Data with our associate companies (including event and content sponsors) to promote their products and services. You will also be automatically subscribed as a user on www.thedigitalbanker.com. If you would like to opt-out, email us at [email protected].

    By clicking Submit, you acknowledge that you consent/ have sufficient informed consent to the collection, use and disclosure of Data as set out above.

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

        Data Protection

        The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

        Registration Form

          Data Protection

          The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

          Registration Form

            Data Protection

            The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

            Registration Form

              Data Protection

              The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

              Registration Form

                Data Protection

                The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                Registration Form

                  Data Protection

                  The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                  The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

                  COVID-19
                  Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

                  Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

                  The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

                  Request Nomination Pack

                  Error: Contact form not found.