Banking in Vietnam go digitalizing

Highly aware that digital transformation is a critical process in Industry 4.0, the banking industry in Vietnam has volunteered to enter this process first, and has begun to reap ‘sweet fruit’.

About 95 percent of all banks in Vietnam have their own digital transformation plan, and are actively trying to master advanced technologies such as cloud computing, bid data analysis to offer new digital services based on them.

The established digital ecosystems of banks, with their digital payment methods, are linked to other digital services in the national economy to allow customers to experience convenient features like opening payable accounts, transferring or depositing money, opening savings accounts, on the virtual space.

Leading domestic banks in digital transformation including VPBank, Techcombank, and MB have reported that over 90 percent of the financial transactions of their customers are done digitally, greatly reducing operation costs.

Since it is now easier and more convenient to pay money via digital methods, the proportion of Current Account Savings Account (CASA) in these banks has witnessed an increase of 40-50 percent. In 2021, when the Covid-19 pandemic was at its peak, the net profit of 27 domestic banks rose by 33.3 percent compared to 2020. In the first 9 months of 2022, the total pre-tax profit of 28 banks reached VND192.5 trillion (US$8.2 billion), a growth of 39 percent as opposed to that time the previous year.

As to the public, during the social distance period, they could still perform transactions, invest money via online services offered by their banks. This has formed a positive habit of cashless payment in the community. Compared to around 50,000 such transactions via banks per day 5 years ago, the figure for last year came to 8 million a day, with an average transaction value of VND900 trillion ($38.3 billion) per day.

The State Bank of Vietnam commented that this impressive achievement results from its investment of VND15 trillion ($638.7 million) in digital transformation. On average, a bank with strong digitalization activities needs to pour about VND1.5 trillion ($63.9 million) a year into this process to maintain the services.

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